Salt Lake City Chapter 13
Chapter 13 bankruptcy in Salt Lake City, UT
Chapter 13 bankruptcy, also called reorganization bankruptcy, uses the income of a debtor over time to pay down what is owed creditors. Chapter 13 bankruptcy allows consumers to restructure their debt payments and keep assets. It is also sometimes referred to as a wage earner plan, although it is also available to persons on welfare or with other kinds of regular income.
Chapter 13 differs from Chapter 7 bankruptcy. Chapter 7 bankruptcy will erase most debt, but requires liquidation of assets. Under Chapter 13 bankruptcy, a debtor enters into a repayment plan to remove debts.
Hiring an attorney who is skilled in Chapter 13 in Salt Lake City is your best bet in determining if this is the appropriate route to take to get you back on your financial feet.
Advantages of the Chapter 13 repayment plan
The heart of any Salt Lake City Utah Chapter 13 bankruptcy is the repayment plan. By following this plan, remaining debts will be wiped out. Before debts are wiped out, a debtor must provide to the court proof of such items as being current on alimony and child support payments. A debtor must also complete a budget counseling session with an approved US Trustee agency.
Some of the advantages of Chapter 13 include preventing secured creditors, such as mortgage companies and banks, from repossessing property of the debtor. A Chapter 13 plan may also extend the time to pay off debts and reduce the amount to be paid. In addition, the plan suspends legal and collection actions against a debtor while the plan is in effect, which is usually three or five years, and it may also suspend such actions against persons who cosigned loans with the debtor, such as friends or relatives.
Determining eligibility
To file for Salt Lake City Chapter 13 bankruptcy, you will need to show the court that you have an income that will allow you to meet your payment obligations. If your income is irregular or too low, or if your total debt burden is too high, you are likely to be found ineligible to file for Chapter 13.
Contact us
If you have any questions about Chapter 13 bankruptcy, do not hesitate to contact Diaz & Larsen, P.L.L.C. for a free evaluation of your financial situation. You owe it to yourself and your loved ones to speak with an experienced bankruptcy lawyer today.
