Before you can begin the process of filing for Chapter 7 or Chapter 13 bankruptcy protection in Utah you must take a credit counseling course. It is always best to hire a Salt Lake bankruptcy attorney to help as there are numerous forms as well as the petition that must be filed. Bankruptcy laws are federal laws but there is certain information that is specific to residents of Utah.
The greatest number of people that actually file for bankruptcy genuinely needs to do it. For those lumbered with debt, it allows for a much needed fresh start. The typical bankrupt is one that has high credit card debt and then is faced with an unmanageable situation; perhaps a loss of a job or uninsured medical expenses or even divorce. Bankruptcy is designed for people in situations such as this.
Exemption Laws:
In Utah there are exemptions which determine the property that you can keep if you elect to file Chapter 7 and set the guidelines for the mandatory repayment plan which is an integral part of Chapter 13.
Utah is unlike some other states where the bankrupt can choose between either the state or federal exemption systems; in Utah you have no choice, you must use the exemptions set by the state.
The homestead exemption: This exemption allows the petitioner to protect up to thirty thousand dollars in equity in their home, if you are filing with your spouse, the homestead exemption doubles. This exemption applies to real property that is your primary residence; it applies as much to a house as it does to a mobile home.
Motor vehicle exemption: In Utah, you can exempt a certain amount of equity in your vehicle, at the moment the amount is $5,000 or $10,000 if you and your spouse both file for Chapter 7. If the equity you have in the vehicle is less than the exemption, the bankruptcy trustee cannot repose and sell it, says Troy Martin of Cook Martin Poulson, P.C in Utah.
There is a lot more to this subject than meets the eye. If you do decide that bankruptcy is your best course of action you most certainly will want to have a knowledgeable Salt Lake bankruptcy attorney on your side. For more information visit The Utah Bankruptcy Lawyer.
