Are you considering filing for bankruptcy in Utah? Before you do so, you should be aware of the consequences. There are many types of bankruptcy, but Chapter 13 is the one that is most often used in Utah. This is also referred to as liquidation. The court will appoint a trustee and the bankruptcy is entered. At this point, all property owned by the debtor will be sold, including any equity that the debtor may have.
When this happens, all debts of the debtor become due and payable. The trustee will take over the title to any assets, including the Salt Lake City condo. In order to make sure that the property is sold at an acceptable price, they will require you to post-security. This will ensure that there will be no default payments on the debt that remains after the sale. In order to prevent any future complications, you will be advised to create a Trustee and Secretary of Administration form.
You will also be advised to create a Living Will. This will cover all major medical and dental expenses as well as your investment accounts and retirement plans. The trustee will hold a hearing on the Living Will and determine whether it is valid. If it is, the trustee can move forward with the sale. If not, you can work with your doctor and dentist to create a better plan.
Once everything is complete, you will be discharged from your financial responsibilities to your creditors. You can then start working with your credit counselor or your new trustee. If you have children, the court will need to make a custody order. Once you are discharged from the court, the bankruptcy remains inactive until the chapter becomes active again.
What is involved with the process of chapter discharge? The discharge allows the person or entity who has filed for bankruptcy to return to an active life. It is possible that the trustee or the court will place you back into court if there are many debts remaining. Chapter discharge does not affect other judgments.
What are the pros and cons of chapter discharge? The pros include a fresh start, which helps the debtor start over. The debtor may retain property or assets. It is possible to get loans at reasonable interest rates while away from home. The debtor’s credit rating may improve slightly. It is important to remember, however, that the chapter cannot be filed retroactively.
What are some disadvantages of chapter 13 bankruptcy? This type of bankruptcy is considered to be a serious financial situation. The debtor must be able to pay all fees and bills associated with the case, including their own. Other financial obligations will still need to be met. It is also important to remember that the chapter does not allow tax liens on real property.
Can I file for chapter 13 bankruptcy online? The most common way to file for chapter 13 bankruptcy is in writing. The form for this must be filed with the county in which the debtor resides. Most lenders offer this service. There are also non-profit organizations that can give free advice about filing for Chapter 13 bankruptcy.
Is there a balance of judgment recovery in chapter 13? Yes, judgment recovery is an option in this type of bankruptcy. This would mean getting money from the sale of a house, car, motorcycle, boat, shares in a business, and other similar items.
Are there special rules for filing for chapter 13 bankruptcy in Texas? Yes. A special “judicial discharge” provision is found in Texas law. This discharge allows some or all of the debtors’ creditors to petition the court to release funds. This action must be done in writing and must provide the courts with evidence that the consumer can’t pay their debts.
Who may qualify for chapter discharge? Anyone who has filed for bankruptcy is eligible. Assets or property don’t have to be attached to show that the debtor may qualify. However, non-dischargeable assets such as government pensions and student loans won’t be included. Only assets that were owned during the period of the bankruptcy are considered. The trustee can sell any non-dischargeable assets to liquidate the estate and repay the remaining debt.