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Learn whether you can file bankruptcy in Utah without your spouse. Alta Legal explains how individual filings work, how joint debts and assets are affected, and when filing alone may be the right choice for Provo residents.
Learn what happens to personal loans and payday loans in Utah bankruptcy. Discover how Chapter 7 and Chapter 13 treat these debts and how Alta Legal assists Provo residents seeking financial relief.
Learn what to do during an ICE raid. Alta Legal in Utah helps immigrants across the U.S. understand their rights, stay protected, and get legal help during immigration enforcement actions.
Learn how to qualify for Chapter 7 bankruptcy in Utah, including the means test, exemptions, and filing requirements. Alta Legal assists Provo residents with bankruptcy guidance.
Learn how Chapter 13 bankruptcy works for Utah residents with regular income. Discover how repayment plans help you manage debt, protect property, and stop creditor actions. Alta Legal provides legal assistance to guide you through the process.
Wondering what happens to your home if you file for bankruptcy in Utah? Learn how Chapter 7 or Chapter 13 bankruptcy affects homeownership and what protections may apply. Alta Legal can help.
Learn which debts can be discharged in Chapter 13 bankruptcy in Utah, including credit cards, medical bills, and more. Alta Legal helps Provo residents navigate bankruptcy with confidence.
What Happens During the Bankruptcy Process?
What Are the Benefits of Filing for Chapter 7 Bankruptcy? Bankruptcy occurs when a person or a business is unable to pay their debts or meet other financial obligations. It is a legal method for getting relief from the situation. Bankruptcy is typically the last option for people who are unable to renegotiate payments for loans or make other arrangements with their creditors. Though it stops the collections processes, it may require you to liquidate your assets, and it will affect your credit score. That said, the goal of bankruptcy is to give yourself a fresh, debt-free start and a chance to rebuild your credit. Types of Bankruptcy There are several types of bankruptcy: Chapter 7 uses a liquidation process to pay off creditors using the debtor's assets and other available funds. This option is most common for individuals. Chapter 11 allows businesses (and some individuals) to restructure their debt so that they can pay it off without liquidation. Chapter 13 is another restructured debt option for individuals with regular income who will be able to pay off their debt but need different terms than they currently have. Most individuals will opt for Chapter 7 because it is the only practical option available to them. Though it is possible to file the necessary documents yourself in Utah, you can also hire a bankruptcy lawyer to assist with the process. How Chapter 7 Works The process of Chapter 7 bankruptcy starts when you file a petition with a bankruptcy court. These courts are all part of the federal legal system, so the process is similar no matter where you live. The entire process can take about four to six months. Once your petition gets accepted, the court issues a stay to your creditors. This order requires them to stop collections activities. A trustee will take over your case. They will oversee the process, communicate with creditors, and liquidate your assets. You must submit supporting documents to show your assets and income. You attend a meeting of creditors during which all your creditors can ask questions and request documentation. Creditors can, but rarely, attend the meeting. You must complete financial management courses during the bankruptcy process. Your debts won't be fully discharged until you do and submit evidence to the trustee. The trustee will oversee the liquidation of your assets and the distribution of proceeds to your creditors. Once you complete all requirements, the debt is discharged and creditors can no longer pursue you for additional repayment. However, it can take up to 10 years to remove the bankruptcy from your credit report. The Advantages of Chapter 7 Bankruptcy Most debtors focus on the negative aspects of bankruptcy, such as liquidation and the impact on credit scores. However, bankruptcy also brings benefits. It is essential to understand these advantages to help decide whether chapter 7 is best for you. Chapter 7 bankruptcy brings an automatic stay on all unsecured debt. Creditors must immediately stop contacting you for repayment. If you complete the process correctly, they will never contact you after you file for bankruptcy. You will have a clean financial slate after the discharge of your debts. Unlike other forms of bankruptcy, which require repayment plans, chapter 7 completely dismisses all debt and gives the debtor a new start. The process is much faster than other bankruptcy options. The process, from filing to discharge, usually takes six months or less. You will get rid of unsecured, consumer debt. Credit card debt, hospital bills, and personal loans will get discharged after liquidation. Chapter 7 allows you to keep necessities exempt from liquidation. This property may include your home, vehicle, or tools necessary for your job. Exemptions can vary, so it is typically best to ask an attorney about claiming them. You will take a financial planning course, which can help you set up a plan for the future and avoid excessive debt. Filing for bankruptcy prevents creditors from taking any further legal action against you for non-payment. Future income and assets acquired after bankruptcy are not affected by your debt. You can immediately start building a savings account. You typically deal directly with a trustee instead of appearing in court, making the chapter 7 process less stressful than other options. A lawyer is allowed to help you with the bankruptcy process and can argue on your behalf for exemptions or other issues involved in chapter 7. Qualifications for Chapter 7 Bankruptcy You need to meet specific requirements to file for chapter 7. This option is available to individuals or small businesses. Your average monthly income for the previous six months needs to be less than the average income for a similar-sized household in the same state. Alternatively, you could pass a means test to prove that you do not have disposable income to pay creditors. You have not filed for bankruptcy in eight years (six years for chapter 13 bankruptcy). If a court dismissed your previous bankruptcy petition, you must wait six months (181 days) before trying again. You can support claims of assets with financial documentation. You can complete a credit counseling course. Chapter 7 is best for unsecured debts, like credit card debt. With secured loans, the lender has the right to repossess your property if you do not make payments, so chapter 7 may not provide relief in these situations. Exemptions for Chapter 7 Also, some types of debt are exempt from discharge during bankruptcy. These include: Child support and alimony payments Student loans Court fees and fines Taxes (with some exceptions) Debts from accidents for which you were liable Fees for condo or homeowner associations How an Attorney Can Help with Chapter 7 Bankruptcy You can technically file for chapter 7 bankruptcy without an attorney. However, the process has long-term financial consequences, so you should seek legal advice if you have any concerns, questions, or uncertainties about the process. If you need to defend your petition or claims, a lawyer in Utah can represent you. The US Court System website strongly recommends consulting a lawyer during bankruptcy. Reach out to us if you are considering filing for bankruptcy.
Your Guide to Stop Vehicle Repossession in Provo, Utah Do you need help with potential repossession of your vehicle in Provo, Utah? If so, you're not alone, and it's not too late. Like most people, you probably took out an auto loan to finance your vehicle, and it has become increasingly difficult to keep up with payments. Failure to pay over time leads to one inevitable consequence: repossession of your vehicle by the lender. This typically becomes a problem anywhere from 45 to 75 days after delinquency depending on the terms of your loan. Again, this problem has affected many people trying to make their way through these difficult times. The good news is that even if you’re behind on your payments, you may not have to deal with repossession with the right strategy. Use this guide to explore your options for halting vehicle repossession. How to Potentially Stop Vehicle Repossession in Provo, Utah. Your exact situation will determine which options may be the best for you to pursue. But you can use this list to better understand what sorts of avenues you could pursue to prevent repossession. To get started, use these five tips as a launching point. 1. Get Your Payments Caught Up The primary reason you're facing repossession is that you have failed to make some of the required monthly payments. This should not suggest that you can't catch up with missed payments and get back on track, though. The terms of your loan will specify when and how your loan will fall into default. Default means that you haven't made your payments based on the terms of a loan and will usually mean you require the full loan amount. In some cases, even a missed payment or two may not immediately place your loan into default. For example, you may need to be first notified by a creditor or loan issuer in writing before you officially enter default status. If you can catch your payments up and pay any incurred fees, you could still potentially rescue your vehicle from being taken. 2. Redeem Your Car Once your vehicle has been repossessed, like many people you might think that it's too late and there's nothing else you can do. Despite the theatrics of the process though, not all options are exhausted (even at this stage). Your last-ditch step to regain your vehicle is to redeem it from the lender. Lenders will retake their property, and it will often go for sale through an auction. You can stop the auction and redeem your vehicle if you can fully pay the balance of your loan. This guideline may seem unrealistic given the nature of vehicle repossession. You already fell behind and couldn’t make prior payments. How could you expect to pay the full balance of a loan if this is your current reality? The truth is that there are all sorts of circumstances that may have led to the problems you’re experiencing. For instance, you may be awaiting some sort of lump sum payment to get your outstanding bills paid up. In those cases, redeeming your car is certainly a possibility for you. 3. Negotiate with Your Vehicle Lender Many repossession cases have been resolved by a simple line of communication between you and the vehicle lender. Your loan provider may even offer programs to help distressed people find a way out of their current situation. Contacting your lender could help you find an amicable strategy to get your payments back on track. Depending on your circumstances, this could include making changes to the terms or finding a way through fees, penalties, and other setbacks. Considering how much you still owe on your vehicle, you could also sell it to obtain the money required to settle the loan. Finally, you can surrender your car voluntarily to the lender. While the outcome is the same for your vehicle, a voluntary surrender may lower the overall credit impact and deficiency liability you would otherwise face. 4. Refinance the Vehicle or Loan Terms If the original terms of your loan were not good, or you're finding your monthly payments too high, you could also pursue a loan modification with your lender. Some providers are willing to offer terms more in line with a person's current situation to prevent the extreme of repossession. However, these terms vary, and you'll need to check with your automotive lender. Another route to follow is to seek a loan from a different lender altogether. You may find better terms that help ease the strain you're feeling in your current loan repayment structure. 5. File for Bankruptcy Filing for bankruptcy could protect your vehicle and other assets from being seized through debt collection and default judgments. When you first make the filing for bankruptcy, all lenders are issued a stay on collecting debts from you. During this stay, debtors cannot continue to contact you, sue for missing amounts, or pursue other court filings. In other words, it can provide you with some time to figure out how to resolve your financial issues. Based on your predicament, you could opt to file for either a Chapter 7 or Chapter 13 bankruptcy. You will want to work with an experienced bankruptcy attorney to assess your precise circumstances and develop a plan to move forward. Get Bankruptcy Help Today Facing vehicle repossession or other financial issue? Need help understanding your options for bankruptcy filing? If so, get in touch with our team today. Our experienced bankruptcy attorneys are ready to help you develop a path toward a more stable financial future.