Why a Chapter 13 Bankruptcy Might be Right for You

If you are considering filing for Chapter 13 bankruptcy in Utah, here are some facts you might want to know. You will be allowed to file if you have enough income to meet the agreed upon payments under your Chapter 13 plan. Along with your income, the court may also consider what you need to live on per month, what income you receive on a regular basis and how much total debt you owe. Under Chapter 13 in Utah you can keep your assets and property by agreeing to a payment plan to pay off your debts. The most important thing under Chapter 13 in Utah is that you can keep your home from going into foreclosure, as missed mortgage payments can be repaid under your plan.

There are Definite Advantages to Chapter 13

You are able to keep all of your assets and keep your home from foreclosure proceedings. If you get your paperwork filed with the court prior to 10 days passing from when you had property repossessed, you can have the proceedings stopped. If you have been delinquent in making car or home payments, Chapter 13 will let you make those up over a timeframe of three to five years. If your home is currently worth less than you owe on a first mortgage, you can discharge a second mortgage. You will be allowed to change certain loan terms, like your mortgage, by renegotiating your interest or term length. Once you have filed, collection companies are forbidden from contacting you to try and collect a debt. If any of your income is being garnished, that will end immediately with your filing.

Taking that First Step

If you feel you qualify for a Chapter 13 bankruptcy, the first thing you need to do is consult an attorney who is well-versed in all aspects of Utah’s bankruptcy laws. ABC Law Utah, the Law Offices of Andrew B. Clawson, P.C., offers free consultations, so make an appointment today.

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