Chapter 13 Bankruptcy
Unlike Chapter 7 bankruptcy, which is primarily for people with little to no income who are effectively starting over with their finances, Chapter 13 is designed for people who are financially capable of entering a moderate repayment program. It tends to be for people who can continue to make payments on items like missed mortgages, alimony, or child support payments. Keep in mind that it’s only for individuals – large corporations or entities will not be eligible for Chapter 13, and there are limits on the total amounts that can be owed under Chapter 13.
Also called a wage earner’s plan, Utah Chapter 13 bankruptcy allows West Jordan individuals, and those in the surrounding areas, to develop a debt repayment plan. It helps you reorganize secured debts and discharge the unsecured ones. Secure debts are those attached to your property and tax liens, while unsecured debts include credit cards, personal loans, medical bills, and old taxes.
What Happens When You File for Chapter 13?
During Chapter 13 bankruptcy, your case will have a trustee appointed to it, just like with Chapter 7. In this case, however, a repayment plan will be submitted to the court. This plan will generally run between three and five years and can be approved or altered by the court. This option does not require the full liquidation of all assets.
If your current monthly income is lower than the median in Utah, you will be given three years — unless the court gives you a longer period for repayment. If your income is more than the median, the plan must be for five years.
Once the repayment plan has been completed, pre-bankruptcy debts will be forgiven. For this reason, Chapter 13 bankruptcy is a common outlet to avoid a home foreclosure, as it allows missed mortgage payments to be pardoned.
Why Hire a Chapter 13 Attorney?
A Chapter 13 lawyer can help you develop a suitable repayment bankruptcy plan. You will get assistance in filing for bankruptcy protection in West Jordan, South Jordan, Taylorsville, West Valley City, and Tooele which stops vehicle repossessions, foreclosure sales, collection calls, wage garnishments, and other collection activities.
To find out more about Chapter 13 bankruptcy or how it might work for you, call the bankruptcy attorneys at Osmond Law at 801-268-2025.