Filing For Chapter 13 Bankruptcy in Utah: 4 Challenges That You May Encounter

filling for Chapter 13 Bankruptcy in utah

Are you thinking of filing for Chapter 13 bankruptcy to stop foreclosure, save property, and reorganize your debts? Then you may want to check out the following information to learn more about Utah’s laws governing bankruptcy.

It is true that the vast majority of bankruptcy regulations and rules are governed by federal law, but Utah imposed quite a few exceptions and limitations of its own that you need to be aware of if you are filing for bankruptcy in Salt Lake City or elsewhere across the state.

How to file for Chapter 13 bankruptcy in Utah?

Our Salt Lake City Chapter 13 bankruptcy attorney Justin M. Myers outlines five steps when filing for bankruptcy in the state of Utah:

  1. Schedule and attend credit counseling before completing forms;
  2. Complete the Chapter 13 bankruptcy petition;
  3. Fill out other required forms relevant for your particular case (find out which forms you should complete by consulting an attorney);
  4. File the petition and forms with the Utah bankruptcy court; and
  5. Complete debtor counseling to be entitled to receive discharges.

Pre-bankruptcy and pre-discharge counseling in Utah

If you want to file for bankruptcy in Salt Lake City or elsewhere in Utah, you will have to participate in credit counseling by an agency approved by the U.S. Trustee in Utah. When filing for Chapter 13 bankruptcy in Utah, you need to show documents proving that you received credit counseling at least six months before filing.

But your bureaucratic hula-hooping does not end there. After the filing, and right before you actually reap the benefits of Chapter 13 bankruptcy, you have to take a debtor education course before getting the sought-after bankruptcy discharge, our Salt Lake City Chapter 13 bankruptcy lawyer explains.

Federal vs state bankruptcy exemptions in Utah

If you are filing for Chapter 13 bankruptcy, you are probably wondering what property you get to keep. While many states in our nation allow bankruptcy filers to choose between federal bankruptcy exemptions and state exemptions, Utah does not offer you a choice.

In the state of Utah, you are governed by the state exemption system, which provides you with bankruptcy exemptions regulating what kind of property you can keep and how much of your unsecured debt you will have to repay.

Utah median income to qualify for Chapter 13 bankruptcy

Like any other state in our country, Utah sets forth its own median income requirements to qualify for Chapter 7 and Chapter 13 bankruptcies. When filing for bankruptcy in Salt Lake City or elsewhere in Utah, you will most likely have to provide detailed information about your expenses and debt payments as part of the so-called “means test” (for Chapter 7) and a similar lengthy form for Chapter 13, Form 22C.

Basically, the form obliges you to compare your income to the median income for a family of your size. In Utah, the state median household income by family size as of the date of publication is $48,176 for one earner, $55,555 for a family of two, and $59,626 and $64,780 for a family of three and four respectively.

If your household is larger than that, add $7,500 for each individual in excess of 4.

Our Salt Lake City Chapter 13 bankruptcy attorney from the JMM Legal explains that when filing for Chapter 13 bankruptcy, most filers use a three-year repayment plan, which is also known as the means test. While Chapter 7 bankruptcy filers are required to provide information about their expenses and payments on secured debts, most Chapter 13 filers have to include that information in the Form 22C in order to qualify, too.

Get local bankruptcy forms to file for Chapter 13 bankruptcy in Utah

There may be some additional “local forms” that you have to fill out when filing for Chapter 13 bankruptcy in Salt Lake City or anywhere else in Utah. Only an experienced lawyer can help you figure out whether or not you will be required to complete any additional forms.

Contact the JMM Legal to schedule a free consultation with our attorneys. Let us help you navigate the legal aspects of filing for bankruptcy in Utah to save your time and headaches. Call our offices at 1-801-505-9679 or fill out this contact form for a free case evaluation.

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