Every year around tax season our clients ask us how bankruptcy will impact the tax refund they are expecting. Some of the questions posed include: Can I spend my tax refund before filing? Can I use my tax refund to pay for the costs of bankruptcy? Should I file bankruptcy before receiving my tax refund? These are all great questions and we will address them here. Read more
One of the most important concerns many of our clients have is how bankruptcy will impact their lease on an apartment of home. This concern arises in one of two scenarios: (1) the client-debtor has arrearages and is filing bankruptcy, at least in part, to avoid paying the past-due rent and perhaps avoid immediate eviction; 0r (2) the client-debtor is current and wants stay in the property. We’ll address each scenario in this article. Read more
Helping Good People Through Difficult Times.TM
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a way for the debtor to rearrange his or her finances by consolidating the debt, reducing the payment based upon the debtor’s ability to pay and partially repaying the debt over a period of 3 to 5 years. Upon completion of the repayment plan, the debtor’s remaining debt is then discharged.
Stop Foreclosure, Wage Garnishment & Creditor Harassment
Filing bankruptcy 13 allows you to immediately stop foreclosure, repossession of your automobile, and wage garnishments. The bankruptcy automatic stay under chapter 13 immediately stops all collections (similar to a restraining order) by all your creditors, including home foreclosure, repossessions, and wage garnishments.
Who Qualifies For Chapter 13 Bankruptcy?
If you have a source of reasonably steady income, then you can qualify for chapter 13 bankruptcy. The main requirement for chapter 13 bankruptcy is that the debtor must have sufficient income to pay for his or her basic needs, like food, rent/mortgage, and living expenses and still have sufficient income to make payments according to a court-approved payment plan. An experienced chapter 13 bankruptcy lawyer with Capstone Law can help you determine if you should file chapter 13.
Save Your Home & Eliminate Negative Equity
If you owe more on your home or car than its current value (negative equity), we can help you eliminate the negative equity! Chapter 13 bankruptcy provides significant tools to deal with property that is upside down. Our experienced chapter 13 bankruptcy lawyers can evaluate your situation and determine if you qualify, so schedule a free evaluation today!
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Fill out our Free Bankruptcy Evaluation to schedule a free bankruptcy consultation with one of our Utah Chapter 13 Bankruptcy Attorneys today to learn how bankruptcy can get you back on top of your financial situation.
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Once a chapter 13 bankruptcy case is filed, the automatic stay prevents creditors from legally foreclosing, garnishing, repossessing or collecting against the debtor or any individual joint debtors. As part of the chapter 13 filing, the debtor proposes a chapter 13 plan (“Plan”) to reorganize their finances. The Plan will contain provisions to deal with repaying secured debts, taxes and other priority debt. It will also propose a plan to bring leases or secured accounts like car loans and mortgages current, removing judgment liens, and restructuring interest rates and amounts due on secured loans. To ensure success of the Plan, the Debtor must comply with the Plan’s terms and remain current. Read more
Will Filing Bankruptcy Stop Foreclosure
Your lender has started foreclosure. What should you do? What are your options? Will bankruptcy stop foreclosure? How can I bring my mortgage current? These are common questions facing those who find themselves in foreclosure. This article answers these questions and outlines some options. Read more
One of the most frequently asked questions that we hear in our Utah bankruptcy practice is whether taxes can be discharged in bankruptcy. The answer to such a seemingly simple question is actually quite complicated. Some federal and state income taxes may be eligible for discharge under Chapter 7 or Chapter 13 of the bankruptcy code under certain circumstances. Read more
Frequently clients need to file for bankruptcy, but want to do so without his or her spouse being affected. That raises the questions: Can a married person file bankruptcy alone? How is the non-filing spouse impacted when their spouse files bankruptcy alone? Read more
Chapter 13 bankruptcy in Utah County is a consolidation of debt and a partial repayment over a period of three to five years, based on the debtor’s ability to pay. Sections 1322 and 506 of the bankruptcy code permits bankruptcy courts to reduce the balance or “cram-down” unsecured debt. This essentially converts property that is secured (collateral is attached to the loan like a home, automobile, or other property) to unsecured debt. Because unsecured debt is paid last in a chapter 13 plan, this often means the creditor receives little or no payout during the chapter 13 plan for the unsecured portion. Debts that are not fully repaid during the chapter 13 plan are then discharged. Read more
Separation Agreements that are incorporated into a divorce decree (and decrees of divorce themselves) pose difficult and sometimes unexpected results in bankruptcy. Many of the general rules of bankruptcy can be dramatically altered with a separation agreement or divorce decree. This article discusses a few of the problems that divorces and divorce decrees pose in a subsequent bankruptcy.
All Americans have felt the worst economic downturn in American history, since the Great Depression. The affects and repercussions are still being diagnosed, assessed and measured. The damage induced by the Wall Street housing bubble is far more widespread than a weak housing market, negative equity, or high unemployment rates. Read more