Chapter 13 Bankruptcy
What is Utah Chapter 13 Bankruptcy?
Under Chapter 13 Bankruptcy, you retain all of your assets and formulate a payment plan to repay all or a portion of the debt owed to them over 3 to 5 years. After the plan is approved by the bankruptcy court, the debtor must make a single monthly plan payment to the bankruptcy trustee, who distributes the plan payments among all of the creditors in an amount and priority specified in the plan. During the Utah Chapter 13 payment plan period, creditors cannot charge interest to the debts –the debtor’s entire payment pays down the principal of the debt. At the end of the Utah Chapter 13 payment plan, the court gives the debtor a discharge of any unsecured debts.
Who should file for
Utah Chapter 13 Bankruptcy?
Utah Chapter 13 Bankruptcy is sometimes referred to as a “wage-earner plan,” although it is also available to persons on welfare. Those filing for Utah Chapter 13 Bankruptcy have some monthly income to pay toward debts after meeting their basic needs. But, because the debtor is unable to pay creditors as much or as quickly as they demand, the Chapter 13 bankruptcy plan steps in to lower payments to something the debtor can afford. A Chapter 13 plan may also extend the time to pay off debts and reduce the amount to be paid. For example, secured claims need only be paid to the extent of the value of the property securing the claim. And the Chapter 13 plan can provide only for fractional payments to unsecured creditors. The Bankruptcy Code does require that priority claims be paid in full. The most common priority claims are recent taxes and family support arrearages. Chapter 13 also greatly benefits debtors behind on their home mortgages because the payment plan allows the debtor to catch up on arrears.
People choose to file for Utah Chapter 13 Bankruptcy when:
they are behind on their house or car payments;
their assets are worth more than the available exemptions;
they owe debts not dischargeable in Chapter 7 (such as child support, recent taxes, fraud judgments);
they have liens that are larger than the value of the assets securing the debt;
they have years of unfiled taxes; and/or
their income is over the median income and they are not eligible for Chapter 7 relief.
Schedule Your Free Initial Consultation
Call Millar Walker Attorneys and Counselors at (801) 424-5280 to schedule a free debt-relief evaluation. We are committed to getting you fast and affordable bankruptcy relief. Let us discuss your questions about stopping lawsuits, creditor harassment, and garnishments. We are available during regular business hours and by appointment evenings and weekends. We will work with you to find a financial arrangement so that you can get the relief you need.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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