When you declare Chapter 13 bankruptcy in Utah you are allowed to keep your assets in return for repaying all or a goodly part of your accumulated debt over a three to five year time frame. Chapter 13 is quite different from Chapter 7 which requires disposal of all non-exempt assets which are used to repay debt as much as possible in return for discharge.
Filing for Chapter 13 bankruptcy in Utah is not for everyone, to be eligible you must have sufficient income to repay some or part of the debt and you must prove to the court that you are in a position to do this as well as look after yourself and family. Those with low income usually are not allowed to file Chapter 13. It is also a stipulation that your debt must not exceed a certain ceiling which currently stands at close to 1.15 million dollars for secured debt and 380 thousand dollars of unsecured debt.
Prior to filing for Chapter 13 bankruptcy protection you must undergo credit counseling. These agencies which are approved by the government are allowed to charge but are under an obligation to provide the service for free if the petitioner cannot afford to pay.
The key element of a Chapter 13 filing is the repayment plan. This plan is quite detailed, showing how and how much of the accumulated debt will be repaid. There are certain debts which cannot be discounted and must be paid in full. The priority debts include child and spousal support, wages to qualified employees and some tax obligations. The plan must include the regular payments that must be made to satisfy any secured debts such as the mortgage on your home or car payments, the plan must also show any arrears on these debts.
What is left after these priority debts and secured debts have been accounted for is seen as disposable income, it is from this money that your unsecured debts will be repaid, these debts include such things as medical bills and credit card balances. In most cases it is not necessary to pay these unsecured debts in full, you must however show the court that you are using your remaining income to do the best you can over the agreed upon time period.
When filing for Chapter 13 bankruptcy in Utah the court will set a time frame for the plan to be executed, the time frame depends to a great extent on your income as well as your debt load. The normal time frame is three or five years.
If your situation is such that Chapter 13 bankruptcy in Utah is seen as the preferred method then you will need the assistance of a bankruptcy attorney. You are invited to contact the Law Office of Andrew B. Clawson, PC.
