How to File for Bankruptcy in Utah
Filing for bankruptcy in the state of Utah is a process that requires some research and preparation on the part of a debtor. It is essential to learn about the federal and local rules that are in place before taking any steps toward filing for bankruptcy. One of the first tasks to accomplish revolves around deciding which form of bankruptcy is appropriate for a specific situation. Most people end up filing for Chapter 7 bankruptcy. This option allows for debts to be discharged. People with the ability to pay back debts over time often end up setting up a structured payment plan under Chapter 13 bankruptcy. There are also several other options on the table for debtors. One of those options is Chapter 12 bankruptcy. This form of bankruptcy is available for fishermen and farmers. People with large debt amounts or business debts may qualify to file for Chapter 11 bankruptcy. It is highly recommended that anyone who is considering the bankruptcy process should seek the guidance of a qualified and experienced bankruptcy lawyer in the state of Utah.
Key Steps in Utah's Bankruptcy Process
One essential step in the bankruptcy process in Utah is something called a means test. A means test is something that is used to determine a person's eligibility for bankruptcy. In addition, it is used to determine the form of bankruptcy that a person is eligible for. A debtor must submit several pieces of information regarding assets, liabilities, income and more as part of a means test. All of the information that is submitted to the court as part of a means test must be accurate and current. Any attempts to conceal assets or misrepresent financial details could result in serious consequences.
The bankruptcy process formally begins when a person files a bankruptcy petition with the court in Utah. This step triggers what is called an automatic stay. An automatic stay is something that prevents creditors from making attempts to contact a debtor or collect unpaid debts.
All debtors are required to attend a mandatory meeting of creditors during the bankruptcy process. This short meeting typically serves as a legal formality. However, it does have the potential to have a big impact on a bankruptcy case because it provides creditors with the opportunity to try to prove that a debtor possesses nonexempt assets that can be forfeited. In addition, creditors have an opportunity to object to the terms of a payment plan that has been set up under a Chapter 13 bankruptcy plan.
Completing Required Courses for Bankruptcy
There are actually two required courses that all debtors must complete when pursuing bankruptcy. The first course is something called a credit counseling course. This course must be taken through an agency that is approved in the state of Utah. The full list of approved providers for this course can be viewed here. It is also necessary to complete a debtor education course during the bankruptcy process. A full list of the approved providers for this course can be accessed here.
The Specifics of Filing for Bankruptcy in Utah
The United States Bankruptcy Court for the District of Utah is located in Salt Lake City. The filing fee when filing for Chapter 7 bankruptcy in Utah is $335. The filing when filing for Chapter 13 bankruptcy in Utah is $310. A complete list of all of the fees a person can anticipate when filing for bankruptcy in the state of Utah can be accessed here. The forms required when filing for bankruptcy in the state of Utah can be accessed here.