subject: Bankruptcy In Utah - Impacts Of Filing And Declaring Chapter: 13 Bankruptcy [print this page] Utah foreclosure defense: Chapter 13 bankruptcy is a bankruptcy program which lets the debtors who qualify for it keep most of their property, and pay off a part of their debts to the creditors according to a payment plan. Its main peculiarity is that it's designed not only for regular individuals living severe financial problems but also for small proprietary business owners.
Keeping your House:
Most of the people declaring Chapter 13 bankruptcy because they are behind on a house or car payment. Regardless of the amount you are behind on your house payments or the amount of equity you have in your home and other assets, you are usually entitled to file a Chapter 13 bankruptcy as long as you have the ability and disposable income to make the monthly payments to the court plus your other debts.
Keeping your Car:
Most people file a Chapter 13 bankruptcy because they are behind on a house or car payment. Regardless of the amount you are behind on your car payments or the amount of equity you have in your car or other assets, you are entitled to file a Chapter 13 bankruptcy as long as you have the ability and disposable income to make the monthly payments to the court plus your other expenses.
Keeping your Business:
In most cases you can keep your business. There are many factors when it comes to retaining a business, so it will be wise to seek legal advice specific to your situation.
Creditor Harassment:
Once your bankruptcy is filed with the bankruptcy court, an automatic stay goes into effect stopping creditors from contacting you and proceeding with foreclosure, repossession and other legal actions including enforcement of a lien. Debts you incur after filing bankruptcy are not included in the automatic stay and those creditors have the right to contact you and take collection actions against you.
Medical Debt:
Medical debt can be eradicated with bankruptcy. If you are married and the medical debt was incurred while you were married, both you and your spouse are responsible for the debt. As a result, if only one spouse files bankruptcy, the other non-filing spouse would still be responsible for the medical debt. It is also important to decide whether the medical provider has obtained a judgment lien against you. If they have obtained a judgment lien and you own a house, additional legal paperwork may need to be filed to void or eliminate the lien. It is important you discuss this with your attorney.
Once you have terminated your bankruptcy and you have received a discharge of debts and final decree, it is time to reestablish your credit. If you kept your house in your bankruptcy, you will immediately start rebuilding your credit with timely payments to your mortgage company. If you have not already obtained a credit card while you were in Chapter 13 bankruptcy, you can obtain a credit card to help reestablish your credit. Obviously, it is not advisable to start accumulating debt after filing your bankruptcy, but obtaining a credit card is a great way to reestablish your credit.
