If you wish to sell your property which is currently occupied with a tenant, you have two options: Sell With the TenancyWith this option, you will sell your property subject to the existing tenancy. That means your tenant will remain in the property after the sale is completed, and they will then start paying rent to the buyer. Complete Sale after Possession (i.e. Eviction)In this case, you will need to terminate the tenancy before the sale is completed, so the property is vacant/untenanted. Well, you can only imagine how much more potentially stressful the process of selling can be with a tenant in occupancy – it’s extra weight to consider during the slog. Of course, that’s not to say there aren’t advantages of doing it. Smaller MarketWith the Utah currently suffering from a major housing crisis there is certainly no shortage of buyers trampling over the tire-kickers, whether they are landlord or home-buyer. If someone likes your property enough they may even have no qualms with making an offer even if they have no intentions of being a landlord (i.e. they’ll give notice to the tenant when legally possible). But the reality is, the market for a tenanted property will appeal to a significantly smaller market, so there’s a chance it won’t shift as quickly as an unoccupied version. But that’s not to say that will always be the case, because selling a house successfully often largely intervenes with fate- the right buyer being in the market at the right time. Complications Of ViewingsYeah, taking viewings with tenants can be a right royal pain in the ass at the best of times, and the horror is only amplified if your tenant isn’t pleased with what’s happening (which wouldn’t be terribly unsurprising, and understandably so). It’s more expensive to sell when vacant. Most landlords prefer to sell their property while it’s tenanted because it’s generally cheaper. Bear in mind, if you legally repossess your property from your tenant and then try to sell, you’ll no longer benefit from rental income, which means you’ll have to dig deep into your own grubby little pockets to pay the mortgage. That can become incredibly expensive if the property remains unsold for several months. This is by far the most common incentive for selling the property while it’s tenanted. Not a bad incentive either. Condition of Your Tenant When SellingIf you’re selling a tenanted property, the odds are you’re going to attract ‘experienced landlords’ So if selling is part of your extreme and flamboyant exit-strategy to unload a rogue tenant that’s disruptive and/or in fallen into rent arrears, the truth will almost always rear its ugly little potato head. On the flip-side, a good tenant will make your proposition a hell of a lot more desirable. Point is, any serious buyer will care about the condition and quality of your tenant and selling with a rogue tenant will usually do more harm than good. You’ll have better luck shifting a property that’s subsiding at a 45 degree angle. Legally Repossessing Your PropertyIf you’ve decided that getting rid of your tenant before selling is the best move (for whatever reason), the usual rules applies, and you’ll need to legally terminate the tenancy, which may mean you’ll have to get comfy and wait several months for the process to complete. Notifying Your Tenant of the SaleIf selling with tenants in Utah, don’t be naive enough to believe you hold all the chips. The tenant is definitely sitting on the same table as the board of directors! While they may not be able to completely stop the process, they will have the ability to make the process unbearably painful or relatively painless (selling is never totally pain free). Offer Your Tenants First DibsPurely out of courtesy, even if you know they’re in no financial position to be serious contenders, you want to give your tenants the opportunity to buy the property before going to market. Explain Reasoning Before Marketing/SellingBeing abrupt in these situations can be profoundly damaging, and that includes marketing before discussing it with your tenants and/or doing it without providing an explanation. Take the time to talk to your tenants and explain why you are selling. Be ReassuringSince you have made the decision to sell with tenants in situ, you have the opportunity to spin a story which reflects the tenants best interests (even though you’re probably doing it to minimize the impact on your bank balance). Reassure the tenants and explain what your decision means: If you’re in financial distress or you can’t handle the responsibility any longer, you have a bit more urgency than if you decided this is it once your tenant’s lease ends, and you may need to sell with tenants. No matter the reason you’re selling, you can sell with or without tenants, but if you choose without, you’re at the mercy of your tenants. You’ll have to wait for their lease to expire unless you can find a way for them to leave early. Pay the Tenants to LeaveIf you want to sell the house early, you may be able to pay the tenants to leave. This depends on the cooperation of the tenants. Some tenants may be willing to leave without payment, while others may want you to help with moving costs or other costs they incur unexpectedly since they weren’t expecting to move quite yet. Sell With Tenants Occupying the PropertyIf you have cooperative tenants, you may be able to get them to help you sell the property. You need their cooperation because you’ll need access to the home to make any repairs or renovations necessary. Appraisers, real estate agents, and inspectors may also need access. If your tenants don’t mind the occasional interruption and keep the house clean and organized for potential buyers, you can use their help to sell the home while they live there. Selling Without TenantsIf you don’t have cooperative tenants or you don’t want to bother them, you can wait until their lease expires or pay the tenants to leave early. If you sell the property without tenants, you may increase your buyers pool since most buyers won’t buy a rental property for themselves. This limits your audience to real estate investors, and if you’re using a real estate agent, he or she may not have the right audience for this situation. Selling without tenants provides the opportunity to: Know Your Tenant’s RightsAll tenants have rights, as do landlords. Knowing your tenant’s rights ensures you follow the law even when you’re ready to sell the house. If you have a current lease, your tenant has the right to stay in the house for the duration of the lease unless there are terms in the lease that allow you or them to exit it with notice. If the tenant doesn’t want to end the lease, you either sell the property with the tenant in the home or pay the tenant to break the lease. If you’re thinking about selling your property with tenants, you must market to the right audience: real estate investors. Using a traditional real estate agent, you might or might not have the right audience. Sure, you may come across some investors, but you’ll have to weed your way through buyers looking for a primary residence. The Benefits of Selling a Rental Property With TenantsAt first, it may feel strange to sell a rental property with tenants. You are the landlord. Aren’t you supposed to remain the landlord for the entire lease period? While that was the intention, it’s not the case any longer, and that’s okay. It’s perfectly acceptable to sell a property with tenants, and it’s even beneficial. You Have the Right AudienceThis is important. You can market your home all you want, but if you’re looking at the wrong audience, you won’t sell the home. If you market your home with a traditional real estate agent, you may not get as many investors interested in the home. Instead, you’ll have buyers looking for a home to live in, which doesn’t fit the bill for what you’re selling. You’ll Save MoneyIt costs money to sell a house. That sounds a bit backwards, but it’s true. You’ll incur costs from the city, county, your HOA, and the real estate agent. While there’s not much you can do about your city, county, and HOA costs, you do have the option of how you sell the house. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Can You Legally Sell Your Rental Property With Tenants In It? appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/can-you-legally-sell-your-rental-property-with-tenants-in-it/
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Bankruptcy is a legal way to get rid of most of your current debt, stop harassment from creditors, and start fresh. It is a federal court procedure. You will file documents with the bankruptcy court and wait for their approval. Then, you will either have debts dismissed or agree to a repayment plan. Bankruptcy is a court proceeding where you tell a judge you can’t pay your debts. The judge and court trustee look through your assets and liabilities (aka what you own and what you owe) to decide whether to discharge (or cancel) some of your debts. If the court finds that you really have no means to pay back your debt, you’ll go through the official process of declaring bankruptcy. Chapter 13 BankruptcyChapter 13 is a bankruptcy method for individuals where the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets and you’re given time to bring your mortgage up to date. You agree to a monthly payment plan and have to follow a strict budget monitored by the court. (There’s no privacy in bankruptcy.) People can file for Chapter 13 bankruptcy if their unsecured debt is less than $419,275 and their secured debt is less than $1,257,850.2 Chapter 7 BankruptcyChapter 7 bankruptcy is the most common type for individuals. In this case, the court sells all your assets with some exceptions so you can pay back as much debt as possible. The remaining unpaid debt is usually erased. You could lose your home (or the equity you’ve put into it) and your car in the process, depending on what the court decides. There’s no set amount of debt you need to qualify the court just has to decide you don’t make enough money to pay off your debt. Chapter 11 BankruptcyUsually just for businesses, Chapter 11 creates a plan for how the business will still run while paying off all their debt. Chapter 12 BankruptcyChapter 12 bankruptcy allows farmers and fishermen to get on a payment plan for their debts to avoid foreclosure on their property. Chapter 15 BankruptcyInternational bankruptcy cases are handled in Chapter 15. Chapter 9 BankruptcyChapter 9 bankruptcy is a repayment plan for towns, cities, schools and the like to pay back their debt. For specific information about bankruptcy laws in your area, visit your state court website. There you’ll find info on the process and where to find help in your area. How to File for Bankruptcy1. Figure out which type of bankruptcy to file for. What Documents Do You Need to File for Bankruptcy?There’s a heck of a lot of paperwork and forms and documents involved in bankruptcy, but let’s talk about what you need to gather up at the start: What Happens if You Declare Bankruptcy?If you declare bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors can’t write, call or sue you after you’ve filed. But even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy. What Does Bankruptcy Cover?Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. (Garnishment is when the court orders part of your paycheck to be sent directly to your creditor without you ever seeing the money). Bankruptcy cancels many but not all of your debts. What Is Not Covered by Bankruptcy?• Student loans What Are the Consequences of Declaring Bankruptcy?Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one, and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy: Your bankruptcy becomes public domain. This means your name and other personal information will appear in court records for the public to access. That’s right . . . Potential employers, banks, clients and businesses can access the details of your bankruptcy. Filing Bankruptcy Is Expensive.Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $3,000 to $3,000. For a Chapter 7 bankruptcy, you’ll shell out $335 for filing fees and $1,500 to $3,000 for an attorney. Buying a home can be more complicated after a bankruptcy. Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan. Bankruptcy affects your credit score.We aren’t pro-credit scores, but it’s important for you to know a bankruptcy dings your FICO. Hard. And that ding lingers. Chapter 13 bankruptcies stay on your credit report for about seven years, and Chapter 7 stays on there for 10 years. Bankruptcy doesn’t clear all debts.We’ve touched on this some, but declaring bankruptcy doesn’t make all your problems go away—and it doesn’t even make all your debt go away. Most student loans, alimony, child support, any reaffirmed debt, unpaid taxes, government debts or court fines aren’t cleared in a bankruptcy. Should You Declare Bankruptcy?Listen. We’ve said it before, and we’ll say it again: Bankruptcy should be your very last option. Check out all the alternatives (aka how to avoid bankruptcy) below. Try each and every one. If nothing works, and you’re still so overwhelmingly underwater that you simply cannot swim—then and only then do you declare bankruptcy. What Are Alternatives to Filing for BankruptcyBefore you even start gathering up that giant pile of documents you need to file for bankruptcy, go through this list of alternatives: Get on a budget.Budgeting may seem intimidating, but it’s just a plan for your money. And if you’re planning to get out of debt and avoid bankruptcy, you can’t do it without a budget. You need to see exactly what money you have coming in and where all of it is going. Once you see what your money is doing, you can start telling it what you want it to do. And what you want is to have more money freed up to pay off that debt. That means cutting extras and spending less money. That means learning tips on how to save money on everything. That means being super intentional with every single dollar you make and spend. When you’re making a budget that will work for you right now, where do you start? What’s the main stuff you need to focus on covering? Start with what we call your Four Walls: food, utilities, shelter and transportation. These are the main essentials. Keep everyone fed, the lights on, a roof over your heads, and gas in the car to get to work. If these Four Walls are only things you can pay for while you’re getting out of debt, that’s called survival mode, and that may be what you need to jump into right now. Talk to a financial coach.You don’t have to walk this alone. Get with a financial coach and talk about your situation. They aren’t here to judge—they’re here to help. A financial coach can help you figure out a personalized plan of action for your specific situation. And yes, talking about money can be terrifying, but if you declare bankruptcy, your financial privacy will be out the window immediately. Opening up to a trustworthy financial coach now can help you avoid having to open up to a whole courtroom of people in bankruptcy. Create extra income. Another way to avoid bankruptcy is to bring in more money. Get yourself a side hustles. There are plenty of ways to work extra hours that fit into your schedule, and also plenty of work-from-home jobs that will keep you from spending extra drive time or gas money. You’ll be busy. But this is for a season and if you’re on the verge of bankruptcy, you’re at war right now. A war against your debt. The good news is, you know who wins. Even if you try every single alternative on this list and still can’t fight off bankruptcy, you are not defeated. Chapter 7 Bankruptcy TimelineThe Chapter 7 bankruptcy process has many steps. Your obligation includes gathering information required by the court and the trustee, taking a credit counseling course, paying a filing fee, which sets the court process in motion, attending a “meeting with creditors,” and more. The judge could discharge your debt once all that happens. Most cases follow the same basic timeline.Normally, the process takes about four months. “Once you file your Chapter 7 bankruptcy, the meeting of creditors with the Chapter 7 trustee is approximately 30-45 days later. Then, the court waits 60 days to see if any creditors object to your Chapter 7 bankruptcy. If no objection, it takes about another 15 days to close out the case and get your Chapter 7 discharge of debt.” • Gathering Information: Gathering documents that the court requires can be time-consuming, but it’s the most important part of the process. The trustee will want your last two years of income tax returns, six months of proof of income (generally paystubs if you are working) and three months of bank account statements. You also need to figure out what you own and how much it’s worth, as well as how much you spend and on what for when it comes time to file forms. More on that shortly. Meeting of CreditorsThe bankruptcy trustee assigned to you by the court will meet with you, in a 341 hearing, usually referred to as the “meeting of creditors.” While your creditors are invited, they don’t generally attend. The meeting usually takes about 10 minutes and requires much of the same paperwork you used to file for bankruptcy. The trustee will request the documentation from you beforehand, and, again, the quicker you provide them, the faster the process will go. The trustee will go over everything with you and determine how much your creditors will be paid. The trustee has 30 days after the meeting to object to an exemption that you’ve requested, and creditors have 60 days to object to the debt discharge. You have a deadline 45 days to determine what will happen to your secured debt, like your car payments or mortgage. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-utah-2/ Bankruptcy provides a solution by giving people saddled with substantial debt the opportunity to get out from under it while treating creditors in a fair manner. Once complete, a debtor (the person filing for bankruptcy) will often describe the relief that comes with a clean financial plate as a “fresh start.” They get to start over without the looming burden of unpaid bills. Even though the general goal of bankruptcy is to clear debt, not all bankruptcies are created equal. In fact, there are six different types of bankruptcies: You may have just taken one look at this list and zoned out for second. That’s okay. More than likely, you would only be dealing with the two most common types of bankruptcies for individuals: Chapter 7 and Chapter 13. (A chapter just refers to the specific section of the Utah, U.S Bankruptcy Code where the law is found). Chapter 7 BankruptcyAlso known as liquidation or straight bankruptcy, Chapter 7 is the most common type of bankruptcy for individuals. A court-appointed trustee oversees the liquidation (sale) of your assets (anything you own that has value) to pay off your creditors (the people you owe money to). Any remaining unsecured debt (like credit cards or medical bills) is typically erased. But as we mentioned earlier, this doesn’t include the types of debt that aren’t forgiven through bankruptcy, such as student loans and taxes. Now, depending on which state you live in, there are some things that the court won’t force you to sell. For example, most people are able to hold on to basic necessities like their house, car and retirement accounts during Chapter 7 bankruptcy, but nothing is guaranteed. Chapter 7 also can’t stop a foreclosure, it can only postpone it. The only way to keep the stuff you still owe money on is to reaffirm the debt, which means you recommit to the loan agreement and continue making payments. But most Chapter 7 bankruptcies are no-asset cases, which mean there’s no property with enough value to sell. You can only file for Chapter 7 bankruptcy if the court decides you don’t make enough money to pay back your debt. This decision is based on the means test, which compares your income to the state average and looks at your finances to see if you have the disposable income to pay back a decent amount of what you owe to creditors. If your income is too low to do so, then you may qualify for Chapter 7. Keep in mind that if you file for Chapter 7 bankruptcy, you will have to attend a meeting of the creditors where people you owe money to can ask you all kinds of questions about your debt and your finances. Yeah, that’s about as fun as it sounds. A Chapter 7 bankruptcy also stays on your credit report for 10 years, and you won’t be able to file for it again until after eight years. Chapter 13 BankruptcyWhile Chapter 7 bankruptcy often forgives your debt, Chapter 13 bankruptcy basically reorganizes it. The court approves a monthly payment plan so you can pay back a portion of your unsecured debt and all of your secured debt over a period of three to five years. The monthly payment amounts depend on your income and the amount of debt you have. But the court also gets to put you on a strict budget and check all your spending (ouch!). Unlike Chapter 7, this kind of bankruptcy allows you to keep your assets and catch up on any debt that isn’t bankruptable. Chapter 13 can also stop a foreclosure by giving you time to bring your mortgage up to date. Anyone can file for Chapter 13 bankruptcy as long as their unsecured debt is less than $419,275, and their secured debt is less than $1,257,850.3 Plus, you have to be up to date on any tax filings. You should also know that a Chapter 13 bankruptcy stays on your credit report for seven years, and you can’t file for it again until after two years. Chapter 11 BankruptcyFor the most part, Chapter 11 bankruptcy is used to reorganize a business or corporation. Businesses come up with a plan for how they’ll continue operating the company while paying off their debt, and both the court and the creditors must approve this plan. Some individuals, such as real estate investors, who have too much debt to qualify for Chapter 13, but who also have a lot of high-value properties and assets, may also choose to file under Chapter 11. But unless you’re a pro athlete or a celebrity, you’re probably not going to mess with this one. Chapter 12 BankruptcyThis is a repayment plan that allows family farmers and fisherman to avoid having to sell all their stuff or foreclose on their property. While it’s similar to Chapter 13 bankruptcy, Chapter 12 is a little more flexible and has higher debt limits. Chapter 15 BankruptcyChapter 15 deals with international bankruptcy issues and gives foreign debtors access to Utah bankruptcy courts. Chapter 9 BankruptcyChapter 9 bankruptcy is another repayment plan that allows towns, cities, school districts, etc. to reorganize and pay back what they owe. The biggest difference between Chapter 7 and Chapter 13 bankruptcy comes down to the person’s assets and income level. For instance, if someone had a recent job loss or an unsteady income, they might fall into a Chapter 7 bankruptcy. But if the means test says they make enough money to pay back their debts, they would fall into a Chapter 13 instead. Someone might also apply for Chapter 13 if avoiding home foreclosure is a top priority, or they could go for Chapter 7 if timing is an issue since it’s significantly faster than Chapter 13. But bankruptcy is a nerve-wracking experience, and choosing between Chapter 7 and Chapter 13 is like trying to pick the lesser of two evils. In both cases, privacy goes out the window. All your information literally gets laid out on a table for the court to look through. Then there’s the fact that about half of Chapter 13 bankruptcy cases nationwide are dismissed because the debtor can’t make the monthly payments. And while creditors are not legally able to hound you for money while you go through the bankruptcy process, the court will come after you harder than any credit card company can if you miss a payment in Chapter 13. But if your case is dismissed, then creditors have the ability to take their cut directly from your paycheck and your home might go into foreclosure. Bankruptcy may seem like a magic wand that can make all your problems disappear. But it’s far from a magical experience and it takes a huge emotional toll. Alternatives to Filing for BankruptcyNo matter how deep in debt you are, it is possible to avoid bankruptcy. You just need to know your options. Here are a few steps you can take that will help get you out of debt without filing for bankruptcy: Take Care Of Necessities First. Before you do anything, you want to make sure the Four Walls are covered: food, utilities, shelter, and transportation. You won’t have the energy to fight your way out of debt if you don’t have a house to sleep in or food to eat. So make sure you’re taking care of yourself and your family first. The collectors can wait. Get On A Budget. In Chapter 13 bankruptcy, the court puts you on a budget and tracks your spending. But the truth is, you can do those things without filing for bankruptcy. If you’re on your last leg, making a budget can be a total game changer. By tracking where your money is going instead of wondering where it went, you’ll find money you didn’t even realize you had. And yeah, budgeting also means cutting all unnecessary expenses to pay off debt. The cable and the subscriptions have to go. No more dining out. No more vacations. You’re in survival mode. But instead of the government telling you how to manage your money for five years in a bankruptcy case, you get to be the one calling the shots. Boost Your Income. Your income is your most powerful wealth-building (and debt-fighting) tool. The more money you make, the more you can throw at your debt. So, you may need to pick up a second job or work more hours at your current job to help keep you afloat while you catch up on those monthly payments. Yes, it can be exhausting, but your temporary sacrifice will be worth it in the long run. Sell Your Stuff. Remember how we said the court liquidates your assets in Chapter 7 bankruptcy? What if you sold your stuff instead? If you’ve got anything of value, like boats, fancy lawn mowers, or anything with a motor that you don’t use to drive to work, sell it! Furniture, collectibles, jewelry, that guitar you promised to learn to play someday—anything you don’t need has got to go. Sound extreme? This is basically what could happen if you file for bankruptcy except you wouldn’t have control over how your things get sold. So hit up Craigslist, eBay and Facebook Marketplace and turn your stuff into fast cash. Filing for bankruptcy is never an easy decision, and you’ll have to weigh the pros and cons of the long-term effects on your debt and credit. But in general, bankruptcy may be the best option if: If you’re considering bankruptcy, get free consultations from a bankruptcy attorney and a nonprofit credit counselor to better understand your financial situation and whether bankruptcy is the best option. Do You Need A Bankruptcy Attorney?Bankruptcy is a long and complicated process. One form improperly filled out could result in the dismissal of your case, which means you would have to wait six months to file again. Find a bankruptcy attorney to help you navigate the process and ensure your paperwork is properly filled out. Many bankruptcy attorneys will want payment before filing, but you have options to help pay for bankruptcy. Filing for bankruptcy is the single most damaging action you can do to your credit, since it will stay on your credit report for up to 10 years. Advantages of Chapter 7 BankruptcyChapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works: Who Should File for Chapter 7 Bankruptcy?Chapter 7 works very well for many people, especially those who: You’ll take the means test to see if your income qualifies for this chapter. If your income is below the average income for a family of the same size in your state, you’ll automatically qualify. If your income is higher than the median, you’ll have another opportunity to pass. However, if after subtracting allowed expenses, including payments for child support, tax debts, secured debts (such as a mortgage or car loan), you have income left over to make a significant payment to your creditors (called disposable income), you won’t qualify to file for Chapter 7 bankruptcy. When Chapter 13 Might Meet Your NeedsChapter 7 bankruptcy isn’t the best choice for everyone. Chapter 7 won’t help people whose debts won’t get wiped out (discharged), like certain income tax debt, student loans, and domestic support obligations. High-income filers find it hard to qualify. It’s also not a good fit for people who would lose substantial equity in a home or other property if they filed for Chapter 7 bankruptcy, or those facing foreclosure or repossession. For those individuals, Chapter 13 bankruptcy would likely be a better choice. Drawbacks of Chapter 13 BankruptcyMost people prefer Chapter 7 bankruptcy because, unlike Chapter 13 bankruptcy, it doesn’t require you to repay a portion of your debt to creditors. In Chapter 13 bankruptcy, you must pay all of your disposable income—the amount remaining after allowed monthly expenses—to your creditors for three to five years. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Lawyers UT appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-lawyers-ut/ Bankruptcy is a legal procedure initiated by an individual or a business that cannot pay their debts and seeks to have the debts discharged or reorganized by the courts. The three most common types of bankruptcy proceedings are Chapter 7 individual petitions, Chapter 11 business reorganization and rehabilitation petitions, and Chapter 13 wage earner’s plans. Bankruptcy cases almost exclusively fall under federal law, though states may pass laws governing issues that federal law doesn’t address. Special bankruptcy courts nationwide handle only debtor-creditor cases. Generally, any bankruptcy-related claim must be filed with the Utah Bankruptcy Court. Terms to Know• Bankruptcy Petition: The document filed that initiates a bankruptcy proceeding; usually contains the debtor’s assets, debts, and other liabilities Considerations When Hiring a Bankruptcy LawyerAlthough most lawyers are free to request permission to practice in Utah Bankruptcy Court, effectively representing bankruptcy clients requires thorough knowledge of the U.S. Bankruptcy Code. Attorneys without the proper experience may not know all of the options available to a client facing bankruptcy, and as a result, they may not be able to broker the most advantageous bankruptcy plans. Bankruptcy proceedings can have long-term benefits and consequences for an individual’s financial and family situations. This is another reason why finding an experienced lawyer is essential. A lawyer who has helped many clients through bankruptcy can better prepare you and protect your assets and minimize the negative effects. If you are facing bankruptcy, contact a bankruptcy lawyer immediately to preserve your legal rights and explore your legal options. How to Find a Good Bankruptcy Lawyer1. Look For A Specialist 2. Choose An Attorney With Adequate Experience The National Association of Consumer Bankruptcy Attorneys (NACBA) advises, “There are some attorneys who have practiced bankruptcy law for many years, but have never really mastered the subject. There are other attorneys who have pursued a general practice, filing a case now and then. If they have been practicing for 25 years without much in-depth experience in bankruptcy that does not translate to the expertise you need.” 3. Focus On Bankruptcy Attorneys With Local Expertise 4. Avoid Bankruptcy Mills 5. It Comes Down To Your Comfort Level Ask around for referrals and do your own online research as well. The NACBA could also serve as a resource. Hopefully, this will help you find a bankruptcy attorney who will meet your needs and lead to a successful outcome for your case. Working with a Bankruptcy LawyerMany debtors file for bankruptcy on their own rather than retaining an attorney, feeling reluctant to bear the additional cost. However, hiring a bankruptcy lawyer can help you approach the situation more strategically. An attorney can advise you on alternatives to bankruptcy so that you can make sure to choose the right path for you. They also can explain the process so that you are not surprised by anything that happens, such as the loss of some of your property. The attorney will review your case with an eye toward any issues that the bankruptcy trustee or creditors might raise. They also will attend the Section 341 meeting of creditors and handle interactions with the trustee. If a dispute arises in the course of your bankruptcy, they can advocate for you in court or during settlement negotiations. Issues to Discuss with an AttorneyOne of the most critical areas in which an attorney may be useful is determining which chapter of the bankruptcy code should serve as the basis for your filing. An attorney can help you go through the means test to determine whether you are eligible for Chapter 7. If you are not eligible, or if Chapter 7 is not right for you, they can advise you on what you would need to do under a Chapter 13 repayment plan. This may involve asking you questions about your household, your income and expenses, your job, any previous bankruptcy filings, and tax payments. Also, an attorney can advise you on the degree to which exemptions can cover your property. If exemptions do not cover everything, the attorney can help you weigh whether getting a discharge of qualifying debts would make the loss of your non-exempt assets worthwhile. They will carefully explore the scope of your assets and determine whether you have a substantial amount of non-dischargeable debt. (You should bear in mind that filing for bankruptcy may have benefits even if you do not get a full discharge of your debts. It can delay collection efforts and give you more time to pay your bills.) If you need to file bankruptcy immediately, an attorney can help you file the paperwork efficiently and thoroughly. You may need to get relief right away if you are facing a foreclosure, an eviction, or the loss of your car, or if you are having money garnished from your bank account or wages, among other situations. Fees for Bankruptcy AttorneysThe fees that bankruptcy attorneys charge vary widely by region. In some relatively ordinary cases, you might be able to retain an attorney for a modest flat fee. However, you should be aware that a startlingly low fee may be too good to be true. This might be simply a base fee to which the attorney adds extra amounts based on various circumstances in a bankruptcy. Some attorneys engage in deceptive advertising, so you should make sure that you understand your fee before signing a representation agreement. At the other end of the spectrum, a fee that is unreasonably high can be reviewed by the bankruptcy court and potentially refunded to the trustee. In some states, a fee will be presumed reasonable if it falls within a certain range, although a court still has the authority to review a fee in this range. Fees in those states usually can go above the presumptively reasonable range, but the attorney will need to ask the court for approval, explaining why a higher fee is appropriate. The fee should not be the only basis for choosing an attorney. You will want to arrange an initial consultation with an attorney whom you are considering. This may be free or offered at minimal cost. While the attorney’s staff can handle much of the paperwork in a bankruptcy case, you should make sure that any legal advice and advocacy come from a licensed attorney. You can ask people whom you trust for referrals, but you should still explore the attorney’s qualifications to decide whether you are confident in them. If you’re facing bankruptcy, it goes without saying that funds are tight, so you may be wondering if hiring an attorney to represent you is worth the cost. The answer is almost always yes, but it depends in part on the assets you’re trying to protect and whether you’ll be filing Chapter 7 or Chapter 13 bankruptcy. A bankruptcy attorney can help you size up your financial circumstances, including the types and amounts of the debts that are overwhelming you, and advise you about whether it’s wise to pursue bankruptcy at all. If bankruptcy is your best option, your attorney can help you decide if you should file it under Chapter 7 or Chapter 13 of the federal bankruptcy law. A Chapter 7 bankruptcy, also known as a liquidation bankruptcy, erases most debts but requires forfeiture of all but a small amount of assets. A Chapter 13 bankruptcy establishes a plan for making partial repayment to your creditors, and can allow you to keep certain assets, such as a home or car. Once you decide which bankruptcy procedure to pursue, your attorney will guide you through the steps involved, including: It’s possible for you to do some or all of these things yourself, but these steps will likely go more smoothly if they’re done on your behalf by an attorney familiar with deadlines, procedures and other formalities of the court. If you’re filing Chapter 7 bankruptcy, which can be wrapped up within a few months in the most straightforward cases, your attorney will likely charge a single flat fee for handling your case. Fees differ by lawyer, and can vary regionally even though federal bankruptcy procedures are the same everywhere in the U.S. You could pay as little as $500 to more than $2,000, but $1,200 to $1,500 is fairly typical. If your finances are particularly complicated, however, it’s possible your fee will be greater. You’ll have to pay your attorney’s fee in its entirety before your lawyer files your case. That’s because all creditors (including your attorney) are legally barred from trying to collect money from you once you’ve filed Chapter 7. You’ll also be responsible for paying the court a filing fee ($338 for 2021), but you can apply to have the fee waived if you lack the means to pay it. The process of filing Chapter 13 bankruptcy is more complicated and far lengthier than Chapter 7, and legal fees are significantly higher as a result. Chapter 13 typically involves creation of a payment plan that can take up to five years to complete. Fees of $2,000 to $5,000 are not unusual, and they can run significantly higher in complicated cases. The good news about legal fees under Chapter 13 is that they often are rolled into the monthly payment plan devised to help repay your creditors, so you don’t have to come up with the money all at once, the way you do under Chapter 7. You will have to pay the court an upfront fee (currently $313) when filing Chapter 13 with the court. Protection Against Excessive Attorney’s FeesIn every bankruptcy case, the court appoints an administrator known as a trustee, whose responsibilities include: inspecting all paperwork you submit for accuracy and completeness; reviewing your finances to determine which assets (if any) are eligible to be sold to help repay your creditors; conducting the sale of those assets; and, in Chapter 13 bankruptcy cases, collecting your monthly payments and distributing them among your creditors. Another duty of the trustee is to review the fees your attorney charges. If the trustee considers any fees excessive, they can order the attorney to refund them. If you think any of the fees are excessive, you can ask the trustee to review them. How Bankruptcy Affects your CreditA bankruptcy is a major negative event in your credit history, and it typically has a deep, lasting negative effect on your credit scores and your ability to get new credit. A Chapter 7 bankruptcy stays on your credit report for 10 years from the date you file bankruptcy, while a Chapter 13 bankruptcy remains for seven years after the filing date. A bankruptcy will have a negative effect on your credit scores as long as it appears on your credit report, but the severity of its impact on your scores will diminish over time. Some lenders refuse to consider applicants with bankruptcies on their credit reports, while others will consider applicants several years after a bankruptcy has been completed. The credit consequences of bankruptcy may be severe, but they are not permanent. With time and persistence, it’s possible to rebuild your credit after bankruptcy and once again enjoy the ability to borrow and repay money responsibly. If you have a bankruptcy in your recent past, it’s a good idea to keep tabs of your credit scores and track your recovery progress. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Lawyer Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-lawyer-utah/ If you are struggling with debt, bankruptcy might be a good option. But before you file for Chapter 7 or Chapter 13 bankruptcy, explore alternatives to bankruptcy. In some situations, a non-bankruptcy course of action may be your best remedy. If your main concern is that creditors are harassing you, bankruptcy is not necessarily the best way to stop the abuse. You can get creditors off your back by taking advantage of federal and state debt collection laws that protect you from abusive and harassing debt collector conduct. Negotiate With Your CreditorsIf you have some income or you have assets you’re willing to sell, you may be a lot better off negotiating with your creditors than filing for bankruptcy. Negotiation may buy you some time to get back on your feet, or your creditors may agree to settle your debts for less than you owe. Get Help From a Credit Counseling AgencyMany people aren’t comfortable negotiating with their creditors or with collection agencies. Perhaps you aren’t confident with your negotiation skills, or the creditors and collectors are so hard-nosed that the process is too unpleasant to stomach. If you don’t want to negotiate on your own, you can seek help from a nonprofit credit or debt counseling agency. These agencies can work with you to help you repay your debts and improve your financial picture. Debt Counseling vs. Chapter 13 Repayment PlansParticipating in a credit or debt counseling agency’s debt management program is a little bit like filing for Chapter 13 bankruptcy. The agency will help you develop a plan to pay back your creditors over time, somewhat like a Chapter 13 plan. But working with a credit or debt counseling agency has one advantage: No bankruptcy will appear on your credit record. However, a debt management program also has some disadvantages when compared to Chapter 13 bankruptcy. First, if you miss a payment, Chapter 13 protects you from creditors who would start collection actions. A debt management program has no such protection: Any single creditor can pull the plug on your plan. Also, a debt management program usually requires you to repay your debts in full. In Chapter 13 bankruptcy, you often pay only a small fraction of your unsecured debts. Finally, debt management and debt settlement scams abound. Many companies don’t care about helping you; they want to collect fees for their services. So tread carefully before you sign up for a plan. Consumer advocates have also raised concerns about credit counseling agencies because they receive most of their funding from creditors. As a result, critics say, these agencies could face a conflict between the interests of their funders and their clients. Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you’re living with little income and property and look forward to a similar life in the future, you may be what’s known as “judgment proof.” This means that anyone who sues you and obtains a court judgment won’t be able to collect from you simply because you don’t have anything they can legally take. Except in unusual situations (for example, if you refuse to pay taxes as a protest against government policies or you willfully fail to pay child support), you can’t be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits. Consolidate DebtOne bankruptcy alternative is to combine debt. Sometimes it is easier to repay debt when only one payment to one creditor is necessary. Here are some different debt consolidation options: Another bankruptcy alternative is to ask creditors to agree to a repayment plan. Many creditors will consent when bankruptcy is the only other alternative for the debtor. The possibility of a debtor filing for bankruptcy will motivate some creditors to agree to one of these options: This is a much better option for the creditor than if the debtor has the debt discharged in Chapter 7 bankruptcy or placed in a court-approved repayment plan in a Chapter 13 bankruptcy. Create a Debt Management PlanIf it is difficult to negotiate with creditors, a credit-counseling agency can work on your behalf to create a debt management plan. The agency will create a repayment plan based on your income and debts. If the creditors agree, you will make one monthly payment to the agency. For a fee, the agency will disburse the money among your creditors until full repayment of the debt. A conflict of interest may exist, however, since many debt-counseling agencies receive the majority of their funds from creditors. A debt management plan does have some disadvantages. If you miss a payment, any creditor can terminate the plan. If, on the other hand, you miss a payment under a Chapter 13 repayment plan, you receive protection from a creditor’s collection activities. Additionally, under Chapter 13, you usually pay only a portion of the debt owed to unsecured creditors, while you must repay the full debt owed in a debt management plan. There is one significant disadvantage to filing for bankruptcy, however: a bankruptcy will stay on your credit record for up to ten years. Default on the DebtIf you have nothing left that is valuable, such as property or income, another bankruptcy alternative is simply to stop paying creditors. A creditor can attempt to collect the debt, but they must abide by the Fair Debt Collection Practices Act and applicable state laws. Under this law creditors may not: If a creditor’s actions violate the law, you may seek monetary damages. Creditors may also attempt to collect a debt through a court judgment. If you have no assets or only have “exempt property,” however, then you are “judgment proof.” Exempt property may include: Consequently, a creditor cannot legally collect the debtor’s property to fulfill the judgment. Typically, a creditor will not sue a debtor when it is impossible to collect the debt. Instead, the creditor may choose to write off the debt as a business loss. The default may remain on the defaulter’s credit record for up seven years, though. Chapter 13 bankruptcyThis type of bankruptcy is a less severe form of bankruptcy and is sometimes referred to as the wage earners bankruptcy. As the name implies, this bankruptcy is reserved for those with an income who can pay all or part of their financial obligations without having their assets repossessed. This particular type of bankruptcy helps borrowers who have access to funds but are under pressure from their creditors to pay back their debts as soon as possible. With Chapter 13 bankruptcy, you have 3 to 5 years to pay back your outstanding obligations. You are also required to use all your disposable income to meet your monthly payments. In line with this, you’ll need to submit what is known as a reorganization or repayment plan. Similar to Chapter 7 bankruptcy, a trustee is appointed to manage the finances and this trustee is responsible for collecting payments from you the debtor and paying the creditors’ their money. This type of bankruptcy may be appealing to you if you are concerned about losing your home to foreclosure and want to keep your assets in place. How to file for Chapter 7 bankruptcyTo file for Chapter 7 bankruptcy, you will need to go through the following steps outlined below. The entire process will take you about 4 months to complete. To get started, it is essential to find and work with an experienced bankruptcy attorney. The steps are as follows: When evaluating the cost of filing for bankruptcy, it may be tempting to file the required paperwork on your own. However, the importance of working with a qualified attorney cannot be overstated. Working with a qualified professional is worthwhile. Especially because of the paperwork required to go through the process coupled with the potential that it could get rejected by the bankruptcy court if paperwork is filed incorrectly. How to file for Chapter 13 bankruptcyTo file Chapter 13 bankruptcy, you need to follow the steps outlined below. Before you start, you need to ensure that your unsecured debt e.g. credit cards, personal loans, etc, do not exceed $394,725 and your secured debt does not exceed $1,184,200. These thresholds are periodically reviewed to keep up with inflation. Step 1: Find a bankruptcy lawyer Consequences Of Filing BankruptcyChoosing to file for bankruptcy is not an easy decision to make and it is one to take seriously. Specifically making sure you have a good understanding of the potential consequences. Some of the major consequences of filing for bankruptcy include: Limited ability to borrow money in the future• Once you’ve gone through bankruptcy proceedings, it will be extremely difficult to gain access to any lines of credit as a permanent public record will exist in your name. If you’re not used to a lifestyle of paying for items in cash, this may prove to be a challenge for your lifestyle going forward as credit cards are very commonly used in society. Your credit report will display your bankruptcy record for up to 10 years Alternatives To The Different Types Of BankruptciesDeciding whether to file for bankruptcy or not can be a tough decision. If you’re wondering what to do, it may help to know that there are alternative options out there. Some options include: Debt Management PlansYou may be able to negotiate a debt management plan where you as the debtor are able to pay back the full principal over an agreed-upon period of time. This creates a monthly payment plan that is tailor-made to cover your specific needs and it can help to provide some structure to your payment process. One thing to note however is that the lender is under no obligation to agree to it. Debt ConsolidationDone correctly, debt consolidation combines all your outstanding debts into one lump sum with a lower interest rate and a more sustainable monthly payment. Debt consolidation is typically in the form of a loan and the interest rates are typically much lower than those charged by individual credit card companies. Debt SettlementThis is an alternative to debt consolidation. Debt settlement seeks to allow a debtor to make a lump sum payment that is usually less than what the debtor currently owes. This amount is typically 50 – 75% of the original value of the debt. Lenders will report this as “settled for less than agreed” to the credit bureaus. This record will remain a part of your credit report for seven years. Personal LoansEven with bad credit, you can apply for a personal loan depending on the specifics of your situation. However, interest rates will be incredibly high and so will the monthly payment. So you’ll need to determine if this option is right for you. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Bankruptcy Attorney Salt Lake City Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy In Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-in-utah-2/ Reasons Hiring Bankruptcy Attorneys Can Actually Be A Good ThingThey Know Which Chapter Is Better for YouThere are two different types of bankruptcies, which are referred to as Chapter 7 and Chapter 13. There are benefits and drawbacks to each type, and without the council of a bankruptcy lawyer, you may not choose the best option. While Chapter 7 allows you to wipe out all unsecured debt, Chapter 13 allows you to pay back your debt over time. Chapter 7 is harder to get, but Chapter 13 may not actually reduce the amount you owe. An experienced bankruptcy attorney will help you analyze the advantages and disadvantages to each chapter and how they apply to your circumstances. They will council you on which chapter is more appropriate for your situation. If Chapter 7 turns out to be the one your lawyer believes will help you the most, they will be able to walk you through the process and give you suggestions on what documents you will need to produce to qualify for that chapter. They Already Know the Legal ProcessBankruptcy lawyers are already knowledgeable about the bankruptcy process, whereas this is probably the first time you’ve had to deal with these procedures. If you try to file bankruptcy on your own, there is a good chance you could miss a deadline or forget to file a document, which could end up delaying your bankruptcy. You certainly want to get this process over with as soon as possible, and a lawyer can help you do just that. From meeting deadlines to knowing the ins and outs of the legal process itself, bankruptcy lawyers can provide you with the proper knowledge you need to put yourself in the best situation you can when you emerge from bankruptcy. Certainly, you can research the process yourself, but hiring a lawyer who doesn’t need to research can save you a significant amount of time and stress. You can get through the entire process more quickly by using a lawyer. They Deal With Your CreditorsIf you’re considering bankruptcy, you probably have quite a few creditors contacting you in an attempt to collect your debts. This is undoubtedly stressful and can make you dread answering the phone or reading your mail. Fortunately, when you hire a bankruptcy lawyer, the harassment from your creditors will stop because your attorney will contact them for you and explain what is happening. Your stress levels are sure to steeply decline once you’ve hired your attorney. Even if you do receive a call from a creditor after you have retained representation, you simply have to tell them to contact your lawyer and provide them with your attorney’s contact information. After that, they should not be contacting you again. Your attorney’s job is to communicate on your behalf with your creditors and they take that responsibility seriously. They do not want you to get harassed and will get it to stop. They Will Save You MoneyMost people who try to file bankruptcy on their own do so because they are already in a poor financial situation and think that paying a lawyer will just make things worse. However, this is a myth, and hiring a bankruptcy attorney will probably actually save you money in the long run. First, having a lawyer will result in you receiving the best possible outcome in court because they already know how to negotiate successful bankruptcies. Second, with a lawyer, you are going to get through the bankruptcy process a lot faster than you probably would on your own. This is mostly because you won’t have to research everything before you take action, but it’s also because your attorney won’t make any costly mistakes that could result in delays or even dismissal of your case. Yes, you will have to pay for a lawyer, but it will be well worth it in the end. They Have Better Odds of SuccessSince bankruptcy lawyers only deal with bankruptcies, they already know any tricks or insider tips to success that you aren’t going to know, especially if it’s the first time you’ve declared bankruptcy. Perhaps they know the proper language to put on your application that is more likely to sway the court in your favor. Or, maybe they have specific experience with a judge and can tailor your response to them. These little things can make a big difference in success. You just don’t have time to get up to speed on everything a professional bankruptcy attorney knows about the field. Their experience and knowledge is simply immeasurable when you think about how long they’ve practiced compared to what you’re able to learn from the Internet in a few months’ time. Your case should be handled with care by someone who fully understands the process and is dedicated to making the journey easier for you. They Won’t Commit FraudOf course, you’d never intentionally commit bankruptcy fraud because you are trying to resolve your debts, not make them worse by ending up in jail. However, there are so many rules to declaring bankruptcy that it can be easy to make a critical error, even if it’s unintentional, that the court may view as fraud. For instance, you have to list all your assets properly and you have to ensure you’re not hiding any money from the bankruptcy court. A bankruptcy attorney knows exactly what you need to disclose to ensure you don’t commit bankruptcy fraud. They will ask you pertinent questions to verify that all your assets are accounted for, that you haven’t had someone hold money or assets for you, and that you have disclosed all sources of income to the courts. Even unintentional fraud can land you in trouble, so it’s best not to chance it by hiring an attorney to handle the details for you. They Give You Peace of MindYou are already stressed enough with your financial difficulties, so you don’t need to add to your stress levels by trying to navigate the complicated bankruptcy process. Hiring a bankruptcy lawyer is probably the single best thing you can do to take the burden off your shoulders and allow them to take over the confusing maze that can be bankruptcy. You have taken the first step toward financial stability. Let your attorney take you the rest of the way. With an experienced bankruptcy attorney on your case, you gain peace of mind that it’s being handled properly and that you won’t make any mistakes that could further cause financial problems. Your attorney will also support you through this entire process and let you know that you aren’t a bad person because you have to file for bankruptcy. They will treat you like family and truly care about the outcome of your case and your emotional well-being. Bankruptcy is not a simple solution to a financial problem, but it is a solution that can work if you know how to navigate the process. Understanding the BenefitsThere is no legal restriction against representing yourself when you file for bankruptcy, but experts including the United States Courts recommend that you retain legal counsel to increase your chances of success. If you choose to represent yourself, you will be expected to have complete knowledge and understanding of the legal process as well as any laws pertaining to your situation. Court proceedings are complicated and confusing to have to endure on your own. You do not want to have to filter through paperwork and other complex issues on your own, especially if you are already facing the stress of living in debt. Allow our team to work with you and provide you our legal assistance that is both efficient and cost-effective. Protection from CreditorsAn attorney can take immediate collections defense actions to protect you against wage garnishment and repossessions. This can provide relief for you from the stress and worry of creditor harassment. Clear Guidance throughout the Entire ProcessOne of the most significant advantages of hiring an attorney is that you will not have to wonder whether you are correctly managing the situation. An attorney will also take care of the paperwork, help you gather the necessary documents, and represent you in court as well. Throughout the bankruptcy process, an attorney will look out for your best interests and strive to help you eliminate the maximum amount of debt possible. Advantages and Disadvantages to BankruptcyDeclaring bankruptcy gives individuals or businesses that are unable to pay their debts a way to solve their financial difficulties. It can help them start rebuilding their credit and lives in a more positive and financially stable way. In most cases, filing for bankruptcy seems like a scary and overwhelming task. However, it is often the right choice. What are the Advantages to Filing for Bankruptcy?Bankruptcy is designed to provide relief for those that are unable to pay their creditors back. Listed below are some of the advantages that bankruptcy can provide: What are the Disadvantages of Filing for Bankruptcy?Although bankruptcy has many advantages as stated in the section above, it also has repercussions that can negatively affect your lifestyle and your long term financial situation. Because of the list of disadvantages, you should think hard about whether filing for bankruptcy and whether it is the right thing for you to do. Issues like employers knowing of your bankruptcy can be a downside of filing for bankruptcy. Listed below are some of the most important and common disadvantages: Should I Contact a Bankruptcy Lawyer?Whether bankruptcy is the right solution for your financial problems will depend on your situation, the type of debts you have, and how much property you need to protect. If you are considering bankruptcy, you should consider discussing your options with an experienced bankruptcy lawyer. As with all court cases it is possible to represent yourself “pro se”; however, the majority of people who file bankruptcy in Utah do so with the assistance of an attorney. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Bankruptcy Attorney Salt Lake City Utah Bankruptcy Attorney Salt Lake City Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Attorneys Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-attorneys-utah-2/ Bankruptcy is a last resort for many people in debt. It effectively wipes what you owe in just 12 months but has a huge lasting impact on your credit rating and living situation. You may be at risk of losing your home if you own it and any other assets you may have. It can also affect your employment too. This is why it’s a good idea to look into how you can reduce the likelihood of needing to take it on. Debt can be damaging in many ways, and it affects more people than you might think. At the end of March 2021, household debt in the U.S. including mortgages, auto and student loans, and credit cards reached a total of $14.64 trillion. That’s a lot of money, and it’s not all because of just overspending. Often, circumstances outside your control can cause you to fall into debt. This may include job loss, long-term disability, or medical bills. If you’re faced with a large amount of debt, you may feel like bankruptcy is the only way to go. But bankruptcy may not be necessary, depending on your situation. Bankruptcy can have a devastating effect on your credit score. It can stay on your credit report for up to 10 years. Here are some ways you can avoid bankruptcy to keep your credit score intact. Increase Your IncomeIncreasing your monthly income could give you extra money to put toward your debt. If you can, pick up extra hours at work, apply for a part-time job, or start a side hustle to bring in extra cash. Alternatively, you can sell any spare items, such as furniture or jewelry, and use the money to pay down your debt balances. The sooner you take action, the better. If you wait until you’re behind on payments, it may be too late to catch up and avoid further action from your creditors. Reduce Your SpendingSpending less money may allow you to dedicate more of it to paying down your debt. You may be able to free up money in your budget by cutting cable, canceling your gym membership, or skipping takeout for dinner. This could help you pay off your debts over time to avoid filing bankruptcy. Review your budget and consider switching to a new one to find areas where you can spend less and pay more money toward your debt. Negotiate With CreditorsMany creditors are willing to work with you, but you have to communicate with them proactively. Let your creditors know you are having financial difficulty and want to avoid bankruptcy. Express willingness to pay off the debt, and ask if they can help make it easier by lowering your monthly payment or interest rate or even both. Many credit card companies and banks have hardship or payment assistance programs intended for this type of situation. Seek Consumer Credit CounselingIf you’re feeling overwhelmed, getting help from a professional consumer credit counseling agency may bring some clarity to your finances. A credit counselor can review your finances to help you figure out a budget, and may potentially work out a debt management plan with your creditors. Under a debt management plan, you work to repay your debts in three to five years.5 First, the credit counselor negotiates with your creditors to get you a lower monthly payment. Then, each month, you send a single lump-sum payment to the credit counseling agency, which then distributes your payments to your creditors. Settle Your DebtDebt settlement isn’t the ideal solution, but you may consider it if you’re on the brink of bankruptcy. Settling a debt means you pay the creditor a percentage of the total amount due to satisfy the debt. Once you reach a settlement agreement, be prepared to pay the settlement amount in a lump-sum payment. While there are debt-relief companies that can settle debts for you—for a fee—you can do this on your own. Start by focusing on debts that already are charged-off or in collections. On top of that, your credit score could be impacted if the debt-relief company encourages you to intentionally fall behind on payments so it can negotiate a settlement. Before Doing Anything Else, Decide If Filing Bankruptcy Is Right for YouBefore jumping in, you need to determine whether filing bankruptcy will help you. Bankruptcy is a powerful debt relief tool, but only if it makes sense for your financial situation. A bankruptcy discharge does not wipe out certain non-dischargeable debts like most student loans, child support obligations, alimony, and recent tax debts. If you have any cosigners, they will not be protected by your personal bankruptcy. If you have great credit when your Chapter 7 bankruptcy is first filed, your credit score will likely drop a bit at first. Most people are able to rebuild their credit and have a better score within a year of getting their bankruptcy discharge. Anyone can file Chapter 7 bankruptcy without a lawyer. Here is an overview of the steps you’ll need to take to obtain your fresh start. How to File Chapter 7 Bankruptcy• Collect Your Documents Collect Your DocumentsYour first step is to collect all your financial documents so you understand the current state of your finances. Start by getting a free copy of your credit report. You are entitled to one free report from each one of the three credit bureaus per year. Some of your debts may not be listed on your credit report. Common examples include medical bills, personal loans, payday loans, and tax debts. Make a list of all debts not on your credit report so you don’t have to look for the information when you’re filling out your bankruptcy forms. In addition to your credit report, you will need the following documents: Having these documents next to you will help you get an accurate picture of your financial situation. Take Credit CounselingEvery person who files for bankruptcy has to take a credit counseling course in the 6 months before their bankruptcy petition is filed with the court. This is a requirement in both Chapter 7 and Chapter 13 cases. The course has to be taken through a credit counseling agency that is approved by the Department of Justice. Credit counseling courses like this one give you an idea of whether you really need to file for bankruptcy or whether you could get back on your feet through some type of informal repayment plan. The course takes at least one hour and can be completed online or by telephone. The course fee ranges from $10 to $50, depending on the provider. If your household income is under 150% of the federal poverty line, you should be able to get this fee waived. Once you complete the course, you will receive a certificate of completion. Keep it. Bankruptcy laws require that you provide a copy of this certificate to the court when you file your bankruptcy forms in Step 5. Complete the Bankruptcy FormsThe bankruptcy forms include at least 23 separate forms, totaling roughly 70 pages. The bankruptcy forms ask you about everything you make, spend, own, and owe. You’ll also include some bankruptcy basics, like what type of bankruptcy you’re filing under and whether a bankruptcy lawyer is helping you. If you hire a lawyer, they will complete the forms for you based on the information you submit to their office. If you can’t afford to hire a lawyer but don’t feel comfortable completing the forms on your own. Get Your Filing FeeThe federal court charges a filing fee of $338 for a Chapter 7 bankruptcy. This amount is typically due when the bankruptcy petition is filed with the court. If you don’t have the funds to pay the filing fee now, you apply to pay your fee in installments, after your case has been filed. You can ask to make up to 4 monthly payments. If paying in installments isn’t even possible, you can submit another form to apply for a fee waiver. To qualify, your total household income must be under 150% of the federal poverty line. The court will decide whether bankruptcy laws support granting you a waiver. This happens after your bankruptcy petition. If your application is denied, the court will typically order you to pay the fee in installments. Print Your Bankruptcy FormsOnce you have prepared your bankruptcy forms, you will need to print them out for the court. You must print them single-sided. The court won’t accept double-sided pages. You will also need to sign the forms once they are printed. You will need: Most bankruptcy courts require just one signed original of the petition, but some courts require additional copies. So, before you head out to submit your forms, call your local bankruptcy court to find out how many copies you will need to bring and confirm you have all the required local forms. Go to Court to File Your Bankruptcy FormsOnce you enter the doors of your local courthouse, you will be greeted by security guards, who will ask you to pass through a metal detector. Once you pass security, you will go to the clerk’s office and tell the clerk that you’re there to file for bankruptcy. They will take your bankruptcy forms and your filing fee (or application for a waiver or to pay the fee in installments). Do not submit your bank statements or tax returns to the court. These documents go to the trustee after the case is filed. for more. While you wait, the clerk will process your case by scanning your forms and uploading them to the court’s online filing system. This usually takes no more than 15 minutes. Once done, the clerk will call you back to the front desk and give you: Mail Documents to Your TrusteeThe Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one. Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you don’t send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts. Take Bankruptcy Course 2After filing your bankruptcy forms, you will need to complete a Debtor Education Course from an approved credit counseling agency. It can be completed online or by phone and typically takes at least 2 hours and costs between $10 – $50, unless you’re eligible for a waiver. The purpose of the course is to educate you on making smart financial decisions going forward but does not provide legal advice about the bankruptcy process. You’ll learn how to prepare a budget and avoid incurring debt with high interest rates. You’re not eligible to receive your bankruptcy discharge and obtain a fresh start if you don’t complete the course and file your certificate of completion from the credit counseling agency with the court. Attend Your 341 MeetingYour 341 meeting, or meeting of creditors, will take place about a month after your bankruptcy case is filed. You’ll find the date, time, and location of your 341 meeting on the notice you’ll get from the court a few days after filing bankruptcy. The main purpose of the 341 meeting is for the case trustee to verify your identity and ask you certain standard questions and most last only about 5 minutes. Your creditors are allowed to attend and ask you questions about your financial situation, but they almost never do. Dealing with Your Car LoanIf you own a car that you still owe on, you’ll have to let the bank and the court know what you want to do with it one of your bankruptcy forms. If you want to surrender the car to the lender and discharge the debt, you don’t have to do anything other than stop making your payments. The bank will either file request with the bankruptcy court to ask permission to retake the car, or wait until your discharge is granted before picking it up. If you want to keep the car, you can either reaffirm the loan or redeem the car. If you’re reaffirming your loan, the bank will send you a reaffirmation agreement after your case is filed. You have to complete and sign the agreement and return it to the bank within 45 days from your 341 meeting. The bank files the signed agreement with the court for approval. To redeem the vehicle you have to file a motion with the court and, once granted, buy the car from the bank for its current value. This gets you out of having to pay the amount left on the loan, but payment has to be made in one lump sum. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Bankruptcy Attorney Salt Lake City UT Bankruptcy Attorney Salt Lake City Utah Bankruptcy Attorney Salt Lake City Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Attorney Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-attorney-utah/ You’ll need to attend a hearing or two when you file for bankruptcy. For instance, in both Chapter 7 and Chapter 13 bankruptcy, the court will appoint a trustee to conduct a hearing that all filers must attend the 341 meeting of creditors. If you file for Chapter 13, you or your attorney will also have to appear at a confirmation hearing. Depending on your case, you might be required to go to more hearings. Bankruptcy Court and Trustee ResponsibilitiesIn a Chapter 7 bankruptcy filing, the bankruptcy trustee sells your nonexempt property, assets that you can’t protect with a bankruptcy exemption and distributes the proceeds to creditors. In Chapter 13, the trustee doesn’t sell your nonexempt assets. Instead, you pay the value of nonexempt assets through your repayment plan. The trustee will review your plan, however, to make sure it’s feasible and that it treats all creditors fairly. If the court confirms (approves) the plan, the trustee will disperse the monthly payments to creditors. Bankruptcy Court and the 341 Meeting of CreditorsIn both bankruptcy chapters, the trustee appointed to your case will review your paperwork and supporting documentation, such as pay stubs and tax returns. The trustee is responsible for ensuring the accuracy of your petition and presiding over the meeting of creditors. When you file your case, the court will notify you and your creditors of the time and location of the 341 hearing. While the hearing might be held at the bankruptcy court, the trustee won’t hold it in a courtroom. Instead, the trustee will oversee the hearing in a conference room. At the meeting of creditors, the trustee will verify your identity and ask you questions under oath about the contents of your bankruptcy papers. Creditors will have a chance to ask questions about your financial affairs, as well, but rarely attend the meeting. If you don’t appear, the trustee will move to dismiss your bankruptcy (more below), and you won’t receive a discharge, the order that wipes out qualifying debt. Bankruptcy Court and the Chapter 13 Confirmation HearingIf you file for Chapter 13, you or your attorney will have to appear at the repayment plan confirmation hearing. Before the hearing, you’ll send your proposed repayment plan to the Chapter 13 trustee and creditors. Each will have an opportunity to file a written objection. If you resolve the issue raised, the trustee or creditor will likely withdraw the objection. If not, you’ll have the opportunity to respond in writing and to advocate your position to the judge at the hearing. Unlike the 341 meeting of creditors, the judge will hold the confirmation hearing in a courtroom. The judge will consider any objections and oral argument at the confirmation hearing. If the repayment plan is approved, you’ll move forward with Chapter 13. If it isn’t, the judge will give you time to remedy the problem in all likelihood. If you’re unable to present a confirmable plan after a few tries, the judge will dismiss your case. Additional Bankruptcy Court HearingsHere are other hearings that occur in both Chapter 7 and 13 with some degree of frequency. If you have a car loan or mortgage, and you want to keep the house, car, or other collateral, you must make the monthly payments during bankruptcy. If you don’t, your lender can file a motion for relief from the automatic stay and ask for court permission to foreclose or repossess your property. For instance, it isn’t uncommon for a debtor to file for Chapter 7 or 13 to stop a foreclosure or repossession. A lender who stands to lose money as a result of the automatic stay can file a motion asking the court to lift the automatic stay. You’ll have the right to oppose the motion and ask the court to hold a hearing. If the Chapter 7 trustee requires the property for the bankruptcy case, the trustee will oppose the motion, as well. At the hearing which will be held in a courtroom in front of a bankruptcy judge, the Chapter 7 trustee will explain that creditors will benefit from the liquidation of the property. The lender holding a lien will be paid in full once the property gets sold, thereby saving the lender the time and effort of foreclosure or repossession. If a Chapter 7 trustee doesn’t intend to sell the property, to defeat the motion, you’ll need to show that: Chapter 7 Reaffirmation Hearing in Bankruptcy CourtIf you file for Chapter 7 bankruptcy and have a secured debt such as a car loan, you may need to reaffirm that debt if you want to keep the car. When you reaffirm a debt, you sign a new contract with the lender that makes you personally liable on the obligation despite your bankruptcy discharge. If your monthly budget shows that you can’t afford to make the monthly payments, a presumption of undue hardship arises. You’ll be required to attend a reaffirmation hearing in a courtroom in front of the judge. At the hearing, you’ll have to explain why you need the car (or any other asset you are trying to keep) and how you can afford it. The judge will decide whether to approve the reaffirmation after hearing your explanation and reviewing your finances. Trustee’s Motion to Dismiss HearingThe motion to dismiss arises in several situations. For instance, if you fail to make your Chapter 13 plan payments, the trustee will file a motion to dismiss your case. If you don’t file a document or a certificate of completion for a required bankruptcy course, or if you don’t show up for the 341 hearing, the trustee will likely request a dismissal. Adversary Proceedings in Bankruptcy CourtAn adversary proceeding isn’t a hearing. It’s a lawsuit filed in your bankruptcy case that a judge will conduct in a bankruptcy courtroom. If you incur debts shortly before filing for bankruptcy, hide assets, lie on your bankruptcy papers, commit fraud, or otherwise abuse the bankruptcy system, the trustee or your creditors can file a complaint and start an adversary proceeding in your case. Once the plaintiff files a complaint, you will have a certain amount of time to answer or oppose it. The court will set a discovery schedule to allow each side to collect evidence. Each party will present the case at trial. The most common types of adversary proceedings include: Proof of Claim in BankruptcyA proof of claim is the paperwork that a creditor must file before getting paid in a bankruptcy case. Under the bankruptcy payment system, some debts—like income tax and domestic support obligations have “priority” status and are paid before other claims. The proof of claim tells the bankruptcy trustee about the type of claim, as well as how much a creditor is owed, so the trustee can determine the amount to pay the creditor if anything. Who Must File a Proof of ClaimAll creditors who wish to be paid out of bankruptcy funds must file a proof of claim. Of course, if funds aren’t available for distribution—such as in a Chapter 7 “no-asset” case—a creditor won’t be told to file a proof of claim. That status will change if the trustee finds undisclosed assets during the review period. Then the trustee will instruct creditors to file a proof of claim. Secured Creditors and LiensLike all creditors, a secured creditor; such as a mortgage or vehicle lender must file a claim in order to receive money through the bankruptcy estate (with a few exceptions). However, even if the secured creditor doesn’t file a proof of claim, the creditor won’t lose its lien. When a lien is in place, the debtor can keep the property securing the debt only if the debtor remains current on the loan. If the debtor doesn’t pay as agreed, the creditor will be able to take back the property, sell it at auction, and use the funds to pay down the loan. As a practical matter, if a secured lender doesn’t file a proof of claim in a Chapter 12 or 13 case (and won’t receive monthly plan payments), a debtor who wants to keep the property securing the claim (such as a house or car) has a couple of options. • Pay outside of the plan. The debtor can make the payments directly to the creditor (instead of through the plan). However, if the debtor arranged to make the payment directly, it likely won’t be possible. Most of the debtor’s funds go into the plan leaving nothing left for a hefty payment. The deadline for filing a proof of claim for non-governmental creditors in a Chapter 7, 12, or Chapter 13 bankruptcy case is 70 days after the petition filing date. The first notice sent to creditors includes the deadline for filing proofs of claim. This notice informs creditors that a petition has been filed and indicates the date set for the meeting of creditors. This notice also sets the last date on which they can file objections to the discharge. Although the court doesn’t usually permit extensions once the deadline has passed, the court has the power to extend the filing time if a creditor shows extenuating circumstances. What Must the Creditor Include in a Proof of Claim?Here’s what the creditor must include in its proof of claim; Formal Proof of ClaimA proof of claim must conform substantially with the official bankruptcy form, Proof of Claim (Form 410). You can download all of the official bankruptcy forms, including Form 410 from the U.S. Courts Bankruptcy Forms page. The information a creditor will need to include is as follows: The creditor should attach supporting documentation, such as the contract, as evidence of the claim. Official attachment forms are available. Also, the creditor or an authorized representative must sign the proof of claim. Informal Proof of ClaimSome courts will accept an informal proof of claim from a creditor if it meets five requirements: Although a bankruptcy judge will consider these requirements, the decision about whether an informal proof of claim will be allowed is ultimately within the discretion of the bankruptcy judge. Objecting to a Proof of ClaimThe court usually accepts the proof of claim and its stated amount unless the debtor, trustee, or another interested party objects. Some of the most common reasons that someone might object to a claim include: What Should I Expect from a Bankruptcy Attorney?Bankruptcy, like most legal matters, is a process and the safest route is to have an attorney guide you through the process if you want to succeed. A good bankruptcy attorney will give you peace of mind if they provide at least these four things: Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Are Alimony Payment I Receive Taxable Income Bankruptcy Attorney Salt Lake City UT Bankruptcy Attorney Salt Lake City Utah Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Attorney Salt Lake City appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-attorney-salt-lake-city-2/ Filing for bankruptcy is a complicated, emotional process. It takes more work and time than most people realize, but it can also be the right solution for significant debt issues. Consult with a bankruptcy attorney or educate yourself on your options, you may find that filing for bankruptcy could help you out of a difficult financial bind. Most filers find that bankruptcy eases stress by stopping: What Happens After a Chapter 7 Bankruptcy?Those who pursue a Chapter 7 bankruptcy should be aware of some potential problems or concerns. Many forms of debt cannot be discharged under Chapter 7 bankruptcy, including: Potential applicants for Chapter 7 bankruptcy should be aware that even private student loans are rarely discharged without a special showing of undue hardship. This can be hard to prove but can happen if you become permanently disabled and cannot work. Solving Bankruptcy ProblemsFollowing a bankruptcy, you may need to correct any inaccurate reports from former creditors. To do this, you will need to engage in a process with the credit bureau. This can entail contacting former creditors for verification of the satisfaction of debts. Even when these issues are resolved, those who have completed a bankruptcy can still expect to: These complications are not the end of the world. They may require using a mortgage broker when seeking to purchase a house. Reasons Why People Go BankruptThe bankruptcy statistics in America are alarming. The past few decades have seen a dramatic rise in the number of people who are unable to pay off their debts, and Congress has recently addressed the issue with legislation that makes it harder to qualify for this status. Following is a list of the most common causes of bankruptcy in Utah today. 1. Medical Expenses 2. Job Loss 3. Poor or Excess Use of Credit 4. Divorce or Separation 5. Unexpected Expenses If you’re behind on your payment, in foreclosure, or have more equity than you can protect, you’ll have a better chance of keeping your home in Chapter 13 bankruptcy. Filers faced with those circumstances should learn more about choosing between Chapter 7 or Chapter 13 when keeping a home. Your Home and the Chapter 7 Bankruptcy TrusteeChapters 7 and 13 work very differently, so it’s important to understand what to expect—especially if you want to keep valuable property in Chapter 7. After filing for Chapter 7, your property will go into a bankruptcy estate held by the Chapter 7 bankruptcy trustee appointed to your case. However, you don’t lose everything because you can remove (exempt) property reasonably necessary to maintain a home and employment. The trustee will sell any remaining assets and distribute the sales proceeds to your creditors. Here’s the tricky part—if you make a mistake, it’s unlikely that the bankruptcy judge will allow you to dismiss the case, and you could lose the house. So you must follow the rules carefully. Are Your House Payments Current?You’ll likely lose your home if you’re behind on the mortgage payment when you file for Chapter 7. Although the automatic stay will temporarily stop a foreclosure, the best thing you can hope for is delaying the process for a few months. Chapter 7 bankruptcy doesn’t provide a way for you to catch up on the overdue payments. This presents a problem because a mortgage is a secured debt, and you can’t wipe out the lien in Chapter 7 bankruptcy. The lender can foreclose after the automatic stay lifts, and you’ll lose the house. The lender will either ask the court to lift the automatic stay to allow foreclosure proceedings to continue (which the court will likely grant if the trustee doesn’t plan to sell the home) or wait until the bankruptcy ends, proceed with foreclosure, and then sell the house at auction. Chapter 13 bankruptcy can help. If you’re behind and want to keep your home, the better option is to file a Chapter 13 case. Unlike a Chapter 7 bankruptcy, it has a provision that allows you to catch up on mortgage arrearages over the course of a three- to five-year repayment plan. Also, if you have more equity than you can protect with a homestead exemption (more below), you can pay your creditors the value of the nonexempt equity in the plan, as well. Can You Continue Making House Payments After Chapter 7 Bankruptcy?It’s also important to be sure you can afford to continue paying the mortgage payment after a Chapter 7 bankruptcy. Losing the house after your case might put you in a worse financial position. Why? If the lender couldn’t sell the home for the amount you owe, you’d be stuck with a deficiency balance depending on the laws of the state you live in. You’d have to wait eight years to file a second Chapter 7 bankruptcy, leaving the lender plenty of time to collect a deficiency balance using collection methods such as garnishing your wages or levying on a bank account. How Much Equity Is in Your Home?If your mortgage payment is up-to-date, your next step will be determining how much equity exists. You’ll start by valuing your home. Then you’ll subtract any outstanding mortgage balance from the home value. The equity would be the amount you’d have in your pocket if you were to sell the house. If you don’t have any equity, you’re in good shape; trustees don’t sell houses without equity. Otherwise, you’ll need to be able to protect your equity with a bankruptcy exemption to avoid losing the home in Chapter 7 bankruptcy. Can You Protect Your Home Equity With Bankruptcy Exemptions?State exemption statutes list the property its residents can protect in bankruptcy. Some states allow residents to choose between either the state exemption list or the federal bankruptcy exemption scheme. Either way, almost all states allow residents to protect some home equity with a homestead exemption. You might be able to exempt even more with a wildcard exemption. If your exemptions adequately cover your equity, the trustee won’t sell your home in a Chapter 7 bankruptcy. However, if your exemptions protect only a portion of it, the trustee will sell the house, pay off the mortgage, give you the amount you’re entitled to exempt, and use the remainder of the sales proceeds to pay creditors. Keep in mind that the trustee will take into account the costs to sell the home. If, after deducting sales costs, the amount remaining isn’t enough to make a meaningful payment to creditors, the trustee will abandon the property (and you’ll get to keep it). Indicators of When to File BankruptcyWhile there is no minimum debt to file bankruptcy, the amount of debt is certainly a vital thing to consider when filing. However, there are other indicators or factors that dictate on when you should file for bankruptcy and these include: Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Estate Planning Attorney Taylorsville Utah Are Alimony Payment I Receive Taxable Income? Bankruptcy Attorney Salt Lake City UT Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Attorney Salt Lake City Utah appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-attorney-salt-lake-city-utah/ If your debts have become unmanageable and you feel there is no other way out, you may be wondering if bankruptcy is your next logical step. While it’s true that nobody wants to leave their financial fate in the hands of the courts, there are times when bankruptcy may be the only solution. Bankruptcy is a formal legal process that can help absolve consumers of some of their debts or reorganize their debts so they can reasonably be paid off. Different types of bankruptcy can lead to different outcomes, and the unique types of bankruptcy are also geared toward different types of consumers. Most consumers who file for bankruptcy do so with the aid of a bankruptcy attorney. Either way, bankruptcy begins when a debtor files a petition for bankruptcy with a bankruptcy court. Individuals can file for bankruptcy on their own, and couples can file together. Businesses can file for bankruptcy using their own separate processes. Types of BankruptcyThere are two main types of bankruptcies for consumers to consider, each of which can make sense depending on a consumer’s financial situation. Chapter 7 bankruptcyWith Chapter 7 bankruptcy, property is sold and the proceeds are used to pay off debts. This type of bankruptcy is usually pursued by consumers who do not earn enough money to repay the debts they have. Chapter 13 bankruptcyWith a Chapter 13 bankruptcy, some unsecured debts may be forgiven. However, remaining debts are reorganized and set up to be repaid over a specific length of time (usually three to five years). This type of bankruptcy is often utilized by consumers who earn enough to repay their debts but need assistance and a fresh start. How Bankruptcy WorksHow your bankruptcy will play out depends on the type of bankruptcy you file. With Chapter 7 bankruptcy, for example, a trustee is typically appointed to take over your property and assess it for resale. Property of value you own can and will be sold in order to raise money for your creditors. With that being said, you may be able to keep important personal items and potentially even real estate since the rules regarding your Chapter 7 bankruptcy vary depending on where you live. By contrast, you usually keep your property when you file for Chapter 13 bankruptcy. However, you need to earn a regular income and agree to repay most of your debts on a repayment plan approved by the courts. A trustee will work with you to collect payments, which they’ll use to repay your creditors according to the plan. While bankruptcy can be a relief for consumers who are able to discharge some of their debts, not all debts can be discharged. Most tax debts cannot be discharged in bankruptcy. You also typically cannot discharge child support payments, alimony, most types of student loans, court fines, criminal restitution and amounts owed due to personal injury caused by driving under the influence. Why Someone Would File For BankruptcyFiling for bankruptcy is usually seen as a last resort; mostly due to the lasting impact filing can have on your finances. A recent bankruptcy can easily cause your credit score to plummet, which will likely make it difficult to purchase a home, buy a car or qualify for other types of loans. Filing for bankruptcy can also cause your insurance rates to go up. However, consumers who file for bankruptcy usually do so because they are unable to navigate their way out of a financial crisis on their own. While bankruptcy is a permanent and drastic move that has many downsides, the process is intended to get people on a sustainable path toward better finances. Because debts can be entirely discharged throughout the process, filing for bankruptcy can be seen as a godsend for those who are truly struggling and have few other options, if any, to consider. If you are overwhelmed by your financial situation and things only seem to get worse with each passing month, you may want to consider bankruptcy as a way out. There are plenty of situations where it makes sense to file for bankruptcy despite the consequences. Here are some reasons to consider filing: Does Bankruptcy Affect My Credit?Having a bankruptcy on your credit report will have a negative impact on your credit. A bankruptcy will make it harder to get loans or credit in the future, and your rates will be higher. How long a bankruptcy stays on your credit report depends on the type of bankruptcy you file. Chapter 7 bankruptcy can stay on your credit reports for 10 years, while Chapter 13 bankruptcy only stays on your reports for seven years. However, the impact on your credit score will lessen over time. For example, a bankruptcy filed last year will have a greater impact than a bankruptcy filed five years ago. Bankruptcy is intended as a last resort for people who have debts they cannot pay off through other means. That is one reason the credit penalty is so severe if you can avoid bankruptcy, it is usually in your best interest to do so. Here are a few tips to avoid filing bankruptcy. The first tip is to try and cut your expenses as much as possible. If you aren’t able to balance your budget so that your income is more than your expenses, you may find that bankruptcy does not give you the clean start you’re looking for. You can also try to negotiate with your creditors to see if they will accept an alternative payment plan. Depending on the types and amounts of your debts, you might also consider debt consolidation. You might be able to consolidate your debts by applying for a personal loan and using the proceeds to pay off your other debts. You can also work with a company that specializes in debt consolidation. If you work with a company, find one that has positive reviews and does not charge an excessive amount of fees. What Bankruptcy Can DoBankruptcy allows people struggling with debt to wipe out certain obligations and get a fresh start. The two primary bankruptcy types filed—Chapter 7 and Chapter 13 bankruptcy—each offer different benefits and, in some cases, treat debt and property differently, too. You’ll choose the chapter that’s right for you depending on your income, property, and goals. Stop Creditor Harassment and Collection ActivitiesOnce you file, the court puts in place an order called the automatic stay. The stay stops most creditor calls, wage garnishments, and lawsuits, but not all. For instance, creditors can still collect support payments, and criminal cases will continue to proceed forward. Stop a Foreclosure, Repossession, or Eviction (at Least Temporarily)The automatic stay will stop these actions as long as they’re still pending. Once complete, bankruptcy won’t help. Wipe Out Credit Card Debt and Most Other Non-priority Unsecured DebtsBankruptcy is very good at wiping out unsecured credit card debt, medical bills, overdue utility payments, personal loans, gym contracts. In fact, it can wipe out most non-priority unsecured debts other than school loans. The debt is unsecured if you didn’t promise to give back the purchased property if you didn’t pay the bill. By contrast, if you have a secured credit card, you’ll have to give the purchased item back. Jewelry, electronics, computers, furniture, and large appliances are often secured debts. You can find out by reading the receipt or credit contract. Wipe Out Secured Debt (But You’ll Have to Give Up the Purchased Property)If you can’t afford a payment that you secured with collateral such as a mortgage or car loan you can wipe out the debt in bankruptcy. But you won’t be able to keep the house, car, computer, or other item securing payment of the loan. When you voluntarily agree to secure debt with property, you must pay what you owe or give the property back. What Only Chapter 13 Bankruptcy Can DoChapter 7 and 13 each offer unique solutions to debt problems. The two bankruptcy types work very differently. For instance, how quickly your debt will get wiped out will depend on the chapter you file: What Bankruptcy Can’t Do• Prevent a secured creditor from foreclosing or repossessing property you can’t afford. A bankruptcy discharge eliminates debts, but it doesn’t eliminate liens. A lien allows the lender to take property, sell it at auction, and apply the proceeds to a loan balance. The lien stays on the property until the debt gets paid. If you have a secured debt—a debt where the creditor has a lien on your property; bankruptcy can eliminate your obligation to pay the debt. However, it won’t take the lien off the property—the creditor can still recover the collateral. For example, if you file for Chapter 7, you can wipe out a home mortgage. But the lender’s lien will remain on the home. As long as the mortgage remains unpaid, the lender can exercise its lien rights to foreclose on the house once the automatic stay lifts. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Criminal Defense Attorney Taylorsville Utah Estate Planning Attorney Taylorsville Utah Are Alimony Payment I Receive Taxable Income Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Bankruptcy Attorney Salt Lake City UT appeared first on Ascent Law. via Ascent Law https://ascentlawfirm.com/bankruptcy-attorney-salt-lake-city-ut/ |
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