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Facts About Utah Bankruptcy Proceedings
Filing bankruptcy is not always the answer to financial burdens. There may be other options to find a solution to your financial problems and recover your credit. The Utah bankruptcy attorneys at LeBaron & Jensen, P.C. can help you decide whether or not you should file for bankruptcy. You may choose to file bankruptcy in Utah when:
- Your monthly income is equal to or less than you monthly expenses. If you cannot keep up with payments on all of your bills, filing a bankruptcy may provide you with immediate relief from your financial burdens.
- Your liabilities exceed your assets. If the debts that you owe your creditors exceed the value of your assets, bankruptcy is a likely option.
- If you want to be free of credit card debt, medical debt, and other types of unsecured debts and still keep your house and your vehicles, bankruptcy can help.
- If you want to save your home from foreclose or your automobile from repossession, bankruptcy is your answer.
- You’ve already tried to negotiate down your debt or payments. If creditors are unwilling to work out a new payment plan or negotiate the total debt, you may need to file bankruptcy.
Filing bankruptcy also carries some consequences in addition to clearing your debt. These include:
- Personal and mental impact. Sometimes filing bankruptcy causes a feeling of failure for the individual and may even have a severe impact on personal relationships, marriages, and future relationships.
- Difficulty obtaining new loans. It will not be as easy to get new loans as it may have been in the past and the loans will have higher interest rates.
- Poor credit score. A low credit score can impact you for up to 10 years after the original filing, impacting future loans, mortgages, and jobs.
Requirements to File Bankruptcy in Utah
There are a number of requirements you must meet before filing bankruptcy. Each type of bankruptcy, such as chapter 7 or chapter 13, has different requirements. The bankruptcy attorneys at LeBaron & Jensen, P.C. can help you determine whether or not you are eligible for bankruptcy and which type of bankruptcy is right for you. Requirements for Bankruptcy in Utah include: Means Test:
- Your current monthly income, for the 6 months prior to filing is considered in determining your ability to pay your debts. This may affect whether or not you are eligible to file a Chapter 7, Chapter 13, or Chapter 11 bankruptcy.
Performing the Means Test – To ascertain whether you will pass the Means Test and qualify to file Chapter 7 bankruptcy, subtract the following expenses from your Current Monthly Income:
- Secured Debt (car loans, etc.) due over 5 years, divided by 60
- Mortgage or vehicle averages to be cured in Chapter 13 plan, divided by 60
- Priority debts (such as taxes, child support, alimony), divided by 60
- Allowed expenses permitted by the IRS in its financial analysis standards
- Other actual expenses as permitted by the IRS
- Health insurance, disability insurance, and health savings account
- Charitable contributions up to 15% of the debtor’s income
- Actual monthly costs of caring for an elderly, ill or disables family member, even if not a dependent;
- Chapter 13 administrative expenses not to exceed 10%
- If your total income, after subtracting the above items, is less than $100, you pass the means test, and you are eligible to file for Chapter 7. Document Production Requirement The following documents are required when filing bankruptcy:
- Attorney Certificate
- Proof of Income
- Monthly Net Income
- Anticipated Changes in Income
- Tax Returns or Transcripts
- Debtors must provide copy of most recent tax return
- Debtors may be requested to provide copies of tax returns becoming due while case is pending, or due within three years before case was filed
- More tax returns required under Section 1308 (in Chapter 13)
- Credit Counseling and Debtor Education
- All debtors filing for Chapters 7, 11, or 13 bankruptcy must complete individual or group credit counseling in person, on the phone, or over the internet, within 180 days prior to the date of filing bankruptcy by an approved credit counseling agency. Credit counseling agencies are required to perform two tasks:
- They must outline the opportunities for available credit counseling; and
- They must assist the debtor in performing a budget analysis
The completion of a financial management course is also mandatory within 180 days following the initiation of a bankruptcy case.
General Utah Bankruptcy Proceedings
The Utah bankruptcy process can be very intimidating. With representation from LeBaron & Jensen, P.C. bankruptcy attorneys your bankruptcy process can be easy and thorough. Our attorneys are very experienced at handling all aspects of personal and business bankruptcy cases. We are available to answer any questions you may have about the bankruptcy process. The bankruptcy process with LeBaron & Jensen P.C.:
- Initial consultation: Schedule a case evaluation to assess your financial obligations and determine your eligibility for bankruptcy.
- Gathering information and documentation: personal financial information including taxes, proof of income, all debts, and all assets.
- Credit Counseling: this must be completed with a certified credit counseling organization within 180 days prior to the filing of your bankruptcy. The certificate of completion is required to file bankruptcy.
- The Petition: the act of filing your bankruptcy petition with the United States Bankruptcy Court for the District of Utah.
- Meeting of Creditors: you will attend a hearing accompanied by your Utah bankruptcy attorney, the U.S. Trustee, and creditors to discuss your pending bankruptcy.
- Monthly Payment (Chapter 13): With chapter 13 bankruptcy, you will formulate a repayment and debt consolidation plan for the next 3 to 5 years. This is a monthly payment made to the U.S. Trustee.
- Financial Management Course: This is a course you are required to take before the conclusion of your bankruptcy case. Without this course, your debts will not be discharged.
- Discharge: After completing the process, your debts will be discharged and you can continue life free from discharged debt. Your bankruptcy allows you to receive a “fresh start” and move forward with your life.
If you have difficulty paying your financial obligations, you should consider filing for bankruptcy. Bankruptcy allows individuals and companies to stop getting collection reminders, remove some, most, or all debt, or reorganize payments to be more controllable. Bankruptcy law is complex. Without an experienced attorney, it is difficult to navigate all the procedural requirements and obtain the greatest advantage possible. Several bankruptcies have been dismissed because inexperienced counsel was retained. At LeBaron & Jensen, our attorneys have successfully handled thousands of bankruptcies since 2004. We have the experience you need to successfully file for bankruptcy, overcome obstacles, and achieve the maximum benefit possible, all at an affordable price. We provide representation to:
- Business Owners
- Secured Lenders
- Unsecured Lenders
- Other Creditors
At LeBaron & Jensen, we understand the stress often present when filing for bankruptcy and are committed to making the process as simple and easy as possible. Contact our bankruptcy attorneys in Layton to schedule a consultation.
Why Choose us as your legal experts
Our Goal is to provide Trust and Integrity
The attorneys at LeBaron & Jensen, P.C. practice law with integrity. You can trust us to pursue your case in a way that will provide you with the best outcome. Having legal expertise is an important factor when it comes to selecting the right law firm, but it pays to hire a firm with attorneys and lawyers that know how to apply their knowledge for each case.
We emphasize developing long-term relationships with clients and maintaining trust and integrity. Providing individual attention allows us to fully understand how to best meet each client’s needs. Whether a corporation or individual, LeBaron & Jensen, P.C., offers local, quality legal services you can count on. Call today to schedule an initial consultation!
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