Provo, Utah Chapter 7 Bankruptcy

What Can Chapter 7 Bankruptcy Do For You?

Chapter 7 bankruptcy is the kind of bankruptcy many people first think of when the topic comes up. In Utah a Chapter 7 bankruptcy clears all unsecured debt. That can include medical bills, credit cards, leases, and some types of loans. Upon filing your bankruptcy all collection activity halts and lawsuits, garnishments, and calls from collection agencies must stop. Chapter 7 bankruptcy is a “clean the slate” bankruptcy.

What Can’t Chapter 7 Bankruptcy Do For You?

Own a home or car and are behind on payments? Want to keep them? If so, Chapter 7 bankruptcy may not be the route you want to take. And, a Chapter 7 bankruptcy in Utah typically won’t clear you of certain debts such as child support, alimony, taxes, and a few other items. So, if you want to hold onto some assets, like a home or car, you may want to look at filing a Chapter 13 bankruptcy.

What Could I Lose Filing Chapter 7 Bankruptcy?

In a Chapter 7 bankruptcy the court typically wants to see some assets it can take and sell in order to give the creditors some relief. Things like jewelry, expensive TVs, artwork, collectibles, investments, as well as homes and cars, are all fair game.  Exemptions exist for cars with less than $3,000 in equity and for homeowners with less than $42,700 (single) or $85,400 for married couples residing in the same home).

What Can I Keep When Filing Chapter 7 Bankruptcy?

Bankruptcy law allows you to keep possession of most of your personal things such as furniture, clothing, appliances, and a lot more. In fact, most of our clients find they can hold on to a lot more than they thought. Our suggestion is to create a list of everything you own and then review it with us. We can tell you quickly what you can keep and what may have to be sacrificed.

How much does it cost to file a Chapter 7 bankruptcy?