Legal Question in Bankruptcy in Utah

Re: What Does Each Chapter Mean??

Ch & means liquidation, Ch 13 is a partial payment workout over 3 or more years. The main difference is that in Ch 7 the debtor is discharged from his unsecured debts, retains any property not exempt; any non-exempt property is turned over to the trustee for sale and distribution to unsecured creditors. In Ch 13 the debtor proposes a plan where all or part of the debt is paid to creditors over a typical 3 year plan. Ch 13 is more flexible and allows retention of more 'none-exempt' property, if that is an issue.

Your decision on which to file is based on your assets, liabilities and income.

Re: What Does Each Chapter Mean??

In my experience the only issue as to whether to file under 7 or 13 deals with whether you are current on your mortgage payments or several months behind. If you are current (or one/two months behind) I would highly recommend you file under Ch. 7 and get complete relief. The process is much simpler -- basically 3 to 4 months instead of 3 to 4 years. READ MY FIRM'S PHILOSOPHY. Everyone deserves a chance to begin again.

If you have not been able to make your mortgage payments on time and you are several months behind, you probably need to file under Ch. 13. In a chapter 13 you and your attorney will propose a plan of reorganization. Basically this plan will take all of the past due mortgage payments and spread them over 36 to 60 months. However, you would need to resume making your regular monthly mortgage payments.

Please call me to discuss your specific situation in more detail. ph. (800) 303-0720