Utah Bankruptcy Chapter 13 and 7 Questions and Answers

Utah Bankruptcy Chapter 13 and 7 Questions and Answers

Before hiring a bankruptcy attorney in Utah, here are some questions to consider.

Which type of bankruptcy is right for me?

To decide which type of bankruptcy is best for your circumstances, you need to think about what you want to accomplish from filing bankruptcy. This is a decision only you can make, based on your circumstances and your financial goals. You may want to discuss it with family or friends and get their input on the matter. Read the information that we have provided, and read a lot other information on bankruptcy. Make yourself as well-informed on bankruptcy as possible, and then make a decision based upon what you have learned. Following are some of the pros and cons for the two types of consumer bankruptcy discussed here.

Bankruptcy Attorney

Hiring a bankruptcy attorney like Ryan E. Simpson of West Jordan, Utah can relieve your debt. Learn more at http://markalexander.over-blog.com

Chapter 7 Bankruptcy

  1. A debtor who has previously received a Chapter 7 discharge may not file until six years have passed. However, the debtor could still file under Chapter 13. Additionally, if the debtor had filed for Chapter 7 within the previous 180 days, and the court dismissed it with prejudice, he or she cannot file.
  2. Chapter 7 will only protect you, the debtor, and not any of your family members or friends who may have co-signed with you. Therefore once you file for bankruptcy, although the creditor is stopped from proceeding against you, the creditor can nevertheless go after your co-signer.
  3. If the majority of your debt are those considered nondischargeable, such as student loans, taxes, and family support obligations, filing Chapter 7 is not going to change anything. But, if there are also debts that are dischargeable, then receiving a discharge may give you more income, and you can use that income to pay the nondischargeable debts.
  4. Filing for bankruptcy under Chapter 7 cannot stop a foreclosure on your home if you are behind on your house payments. Neither can you eliminate or lower payments on a mortgage lien.
  5. Generally speaking, all the income and property that you receive after filing for bankruptcy is yours. This is not the case with Chapter 13.

Chapter 13 Bankruptcy

  1. Because you retain control over your belongings when you file for Chapter 13, you can use these assets as needed, by selling them or borrowing against them, and then use that money to finance your payment plan. A bankruptcy lawyer can help.
  2. Unlike Chapter 7, the filing of a court case under Chapter 13 will possibly protect a family member or friend who co-signed on the debt. Once you file, your co-signers are protected from creditors trying to collect, although a creditor may go to court to be allowed to collect from the co-signer. Also you may be able to pay off this loan in full, even if it is unsecured, in order to prevent your co-signer from being harmed.
  3. Unlike Chapter 7, an advantage to Chapter 13 is that filing for bankruptcy will immediately stop a foreclosure action against your home, and you can then use your Chapter 13 plan to correct your default on payments.
  4. Unlike in Chapter 7, all the income and property you receive after filing your bankruptcy petition are considered estate property, and thus if you suddenly receive a windfall of some sort the creditors and/or the trustee might be able to force you to use this to increase the amount of money the creditors receive.
  5. While in Chapter 7 you generally receive a discharge after about 90 days, in Chapter 13 no discharge is granted until the end of the payment plan, usually 3-5 years later. If you were to lose your job and miss payments, it is possible that your case could be dismissed (and you would not have received a bankruptcy discharge) or the court could convert it to a Chapter 7. Consult with your bankruptcy attorney.
  6. Finally a debtor who receives a discharge under Chapter 13 receives the most broad bankruptcy discharge available. Virtually all debts are discharged here, including discharges for fraud that cannot be included under Chapter 7. However, even under Chapter 13 you still cannot discharge debts for student loans, family support, or for injury damages caused by driving under the influence. Learn more at http://ceicom.org


Contact the law firm of Ryan E. Simpson. He is an experienced West Jordan, Utah bankruptcy attorney.

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