How to File for Bankruptcy in Utah

n 2007, Utah ranked right in the middle of the 50 states for total number of bankruptcies per capita, at number 25. Since then, this number has increased across the nation because of continued economic trouble, and credit spending by consumers. When bankruptcy becomes the only option, there are many forms available. These forms are determined by the federal government, but each state, is able to create their own additions or replacements to those laws. Most states, such as Utah, have taken advantage of this ability.

Finding a Bankruptcy Attorney

Most individuals inevitably file for Chapter 7 bankruptcy; however this is not always the most beneficial choice for every individual or business. Other common options are Chapter 11 and Chapter 13. Each of these has variances from state to state, adding to the already complex process of bankruptcy. Hiring a specialized bankruptcy attorney is extremely important. To find the right one, personal or business referrals are the best, but there are also many services available online.

Bankruptcy Options

Once the right attorney is found by the debtor, a meeting is arranged to determine the most useful form of bankruptcy for the circumstances, usually ending with one of the following options:

·Chapter 7, often referred to as liquidation bankruptcy because all assets, aside from exemptions, are repossessed to repay creditors. With this most debts are removed, however credit is affected, and possessions are removed.

·Chapter 13, commonly called rehabilitation bankruptcy, is utilized by those with the means to repay the entirety of their debt in time. A repayment plan is arranged for 3 to 5 years, and all the debtor’s possessions remain with them.

·Chapter 11, a second form of rehabilitation bankruptcy that is tailored for businesses,  allows them to continue functioning while going through the initial bankruptcy, and through completion of the designated repayment plan.

Utah Exemptions

Unlike many other states, Utah allows for Chapter 7 bankruptcy exemptions only under the state regulations. This is the major contrasting factor in Chapter 7 bankruptcy from state to state, and Utah’s are the following:

Filing the Petition

Once the initial processes of bankruptcy are completed with a bankruptcy attorney, a bankruptcy petition may be filed to the bankruptcy court. This process is especially important for those filing for Chapter 7 bankruptcy, as discrepancies can warrant bankruptcy fraud. Nevertheless, even prior to this, a “means test” must be passed to be permitted Chapter 7. Usually within 20 to 40 days, if the petition is granted, the next step is the “341 meeting,” after all creditors are notified of the bankruptcy. It is especially important for those filing for Chapter 11 or Chapter 13 bankruptcy, because it is when the bankruptcy trustee and creditors will arrange the repayment plan.