Legal Question in Bankruptcy in Utah

what are my choice

I am in a situation were I might have to file bankruptcy. but I have a few questions.

#1 I have several credit cards however only one has dept do I have to list all of the cards.

#2 I own one car which I owe money on. this a multi level question a. if I owe money do I have to claim the car

b. if I don't have to claim it can they take it during the bankruptcy

c. if the car gets paid off before I file will I lose the car due to the bankruptcy

and finally if I have just the minimum amount in my bank accounts will that ammount of money have to be used for the debt before I can file for bankruptcy


Asked on 5/26/03, 12:45 pm

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: what are my choice

I am not exactly clear what you mean with the fact that only one card as "dept"? You would have to list all credit cards that you owe money on. However, there strategies we can use in some situations to avoid listing every card. With respect to the car you would have to list the debt but you would be able to pay the debt even though you are in bankruptcy. The term for this is "reaffirmation". You are declaring that you will repay the debt so that you do not have to return the collateral (the car). PLEASE READ MY FIRM PHILOSOPHY. Everyone deserves a chance to start over fresh. Please call me. I would be happy to discuss you situation in more detail. ph. (800) 303-0720

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Answered on 5/27/03, 9:21 am
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: what are my choice

Bankruptcy will only discharge "unsecured" debt, typically such as credit card and medical debt. You should not take out bankruptcy unless you are totally without the means to pay your debts.

You do not need to list cards for which there is no balance owing as debt. Only those to whom you owe money are to be listed. You will have to make a complete disclosure of your financial condition, including assets. You will have to list your car, whether or not you owe money on it. If you have significant equity, the bankruptcy trustee may take and sell your car to pay your unsecured creditors. There are a number of "exemptions" which allow you to retain a small amount of cash, and various items of property within certain value limits.

Before you consider bankruptcy, talk to Consumer Credit Counselors, and also to a bankruptcy lawyer.

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Answered on 5/26/03, 12:51 pm


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