Welcome to Bankruptcy Guide
Utah Bankruptcy Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Seeing Daylight Through the Eyes of Bankruptcy Laws
from:Bankruptcy laws are very clear about when you can and cannot file bankruptcy. Because of so much misuse of the bankruptcy proceedings in the past, the laws were revised in 2007. In effect the new law made it more difficult to file a chapter 7 than in the past, but once qualified, you no longer have to lose absolutely everything. The law recognizes that people in a severe debt situation need to start with a clean and manageable slate. Losing your home and the car you use to drive to work can only make the situation worse.
As a result the bankruptcy laws now allow people to keep their home and primary cars in many situations. The personal bankruptcy laws are defined under chapter 7 or chapter 13 while businesses can file a chapter 11. The laws vary, of course, depending on which type of bankruptcy applies to your situation.
When you file a bankruptcy it is almost as if a magician performed magic. The credit calls will stop and any financial collection activities are suspended by law. The mortgage company stops threatening foreclosure on your house and the credit card collection companies stop contacting you almost immediately. Even if you do get something in the mail or a phone call, all you have to do is notify your attorney who will make sure the law is followed. You will experience almost immediate relief because now your bank account or other benefits you may be receiving are not under threat of unannounced seizure.
The new bankruptcy laws require that you go through credit counseling which can be done online if you prefer. For a small fee you go through a process which analyzes your current financial status and works through a budget plan that you can follow in order to recover from the bankruptcy as quickly as possible. You also want to learn all you can to avoid having this situation ever happen again.
Bankruptcy laws provide clear rules about which assets you must list and how to value those assets. The value in some cases is replacement value which is normally retail value. You must past a “Means Test” before you are allowed to file for bankruptcy. The “Means Test” determines your true financial status and whether you can pay any of your debt. It then indicates which chapter you qualify under for filing purposes if you meet the Means Test minimum standards.
Bankruptcy laws cover a number of situations. The laws define exempt property, eligible debts that can be included in the bankruptcy filings, payment of creditors, liquidation of assets and a number of other topics. Because of the many bankruptcy law interpretations that must be made throughout the process, it is recommended that you use an attorney if at all possible. The attorney will insure you meet the requirements of the law and that you also get the greatest relief permissible.
Filing bankruptcy is a serious business that should only be undertaken when there seems to be no other options. Though the new laws are tougher than the older laws, the fact is that they do not hinder legitimate consumers and businesses from getting the relief they need.
Utah Bankruptcy News
Utah Senator Forced to 'Short Sell' His House - Reuters
Utah Senator Forced to 'Short Sell' His House Reuters Utah Sen. Mike Lee was elected to office in 2010, when he left his private law firm and gave up a lucrative salary. Lee's ex-firm later filed for bankruptcy, the Tribune reports. As the housing market continued to sputter, a neighbor's home went ... |
Stockton's slow walk toward possible bankruptcy slows - Central Valley Business Times
Stockton's slow walk toward possible bankruptcy slows Central Valley Business Times Former US Bankruptcy Judge Ralph Mabey, of Salt Lake City, Utah, senior of counsel to the Los Angeles law firm of Stutman Treister & Glatt, is the mediator. It's unknown if all creditors agreed to the extra time or just a majority. |
Utah developer Terry Diehl has initial bankruptcy hearing - Salt Lake Tribune
Utah developer Terry Diehl has initial bankruptcy hearing Salt Lake Tribune By Patty Henetz At his first hearing following his bankruptcy filing, Salt Lake County developer and political deal-maker Terry Diehl said he filed for Chapter 11 bankruptcy on March 30 because he was about to lose his homes in Utah and Coronado, ... |
Want to Own a Ski Resort? Wolf Creek Utah is up for Auction - Ski Channel
Want to Own a Ski Resort? Wolf Creek Utah is up for Auction Ski Channel Two years ago, the property faced over $20 million in debt, and went into Chapter 11 bankruptcy. After being sold to a new owner, it would seem the situation has yet to be alleviated — and now will be sold to the highest bidder. |
Ally mortgage unit files bankruptcy - Gant Daily
Ally mortgage unit files bankruptcy Gant Daily Midvale, Utah, United States (4E) – Ally Financial ResCap mortgage on Monday filed for prepackaged bankruptcy protection. The bank, owned by taxpayers, said the filing will allow the bank to take another step to repay the US treasury. |