What Do I Get To Keep?
Understanding Bankruptcy Exemptions
One of the most common misconceptions about bankruptcy is that you are going to lose everything you own and be left on the street with nothing. This could not be further from the truth. The purpose of bankruptcy law is to give you the opportunity to get out from under the burden of unmanageable debt so you can get a fresh start and live a normal life.
In pursuit of that goal, bankruptcy law allows you to keep certain critical assets that cannot be taken from you. These are referred to as property exemptions. In Chapter 7 bankruptcy, certain nonessential assets may be sold in order to raise money to repay your creditors. In Chapter 13, you are not at risk of losing any property because you are repaying your debtors according to a payment plan.
Utah Bankruptcy Exemptions
At the Salt Lake City, Utah based law office of Justin M. Myers, Attorney-at-Law, LLC, we will help you understand local property exemptions and explain the pros and cons between filing for Chapter 7 and Chapter 13. While you probably wont be able to keep the boat, you do have the opportunity to keep the house and the car.
Among the property included in Utah bankruptcy exemptions are:
- A percentage of your income
- A home, up to a certain level of equity
- Household goods including appliances, furniture and other furnishings
- A vehicle, within value limits
- Tools of the trade
- Family heirlooms
- Medical and disability benefits
- Child support and alimony payments
- Personal injury damages
- Health aids
- Burial plot
- Retirement plans, pensions and similar plans
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Contact our office today to discuss your bankruptcy questions with a lawyer. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 801-505-9679 or via e-mail.
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CHAPTER 13 BANKRUPTCY
CHAPTER 13 BANKRUPTCY INVOLVES THE REPAYMENT OF DEBT OVER A THREE TO FIVE YEAR PERIOD ACCORDING TO A COURT APPROVED REPAYMENT PLAN.
Along with a bankruptcy petition and supporting documentation, people filing for Chapter 13 bankruptcy will also need to include a preliminary repayment plan which is usually developed during credit counseling. After the creditors meeting you will attend a meeting to confirm your repayment plan. Once your repayment plan has been successfully completed, you will receive a discharge of your debts.
CHAPTER 7 BANKRUPTCY
Before your bankruptcy petition is filed, you will need to take a means test to see if you qualify for Chapter 7 bankruptcy
A The means test measures your disposable income against that of other Utah citizens and ensures that your application for bankruptcy is not an abuse of the system.
After the creditors meeting has been completed, the trustee will identify your exempt property and your nonexempt property. Your nonexempt property may be sold at auction and the funds used to repay your creditors. If your trustee decides that none of your property can be sold, you would lose nothing.
After the funds, if any, have been distributed to your creditors, you will receive a discharge and will no longer have any personal responsibility for those debts.
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INITIAL CONSULTATION
It can be easy for even the most responsible person to fall into overwhelming debt. But does not have to be impossible to get out. The first step is to seek representation from a Salt Lake City bankruptcy attorney with a track record of protecting the rights of clients and looking out for their best interests. Contact our office today to discuss your bankruptcy questions with a lawyer. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 801-505-9679 or via e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.