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With the coronavirus pandemic, 2020 is turning into a year that may result in more financial hardships than previous years. Sometimes we go through a rough financial patch, and this can bring about lots of stress and hopelessness. The main aim of this article is to show you how a Chapter 13 bankruptcy in Utah and other options can help ease the hardships and put you on the path to freedom from debt.

This article presents an insight on crucial elements of a Chapter 13 Bankruptcy in Utah. Why are we so focused on a Chapter 13 Bankruptcy in Utah? This is because some aspects are more relevant on a national platform while others are Utah-specific. For more details covering national specific features, you can read Chapter 13 bankruptcy.

1) Understanding Bankruptcy Chapters in Utah

We will learn more about Utah specific information but before that, how about some few details regarding Chapter 13 bankruptcy? Plus how it is different from a Chapter 7 bankruptcy?

Chapter 13 Bankruptcy: Chapter 13 bankruptcy can also be termed as the ‘wage earners bankruptcy.’ In this case, debtors agree to repay their debts through installments that range from three to five years, paid monthly. Some debtors prefer to involve their lawyers in the process. Why do some people opt for Chapter 13? In some instances, they might be earning way too much to qualify for Chapter 7, or they might own assets that are too valuable.

Chapter 7 Bankruptcy: A chapter 7 bankruptcy is also called liquidation bankruptcy, and it is when a debtor cannot be able to honor their debt payments. So, they file for Chapter 7 to try and get released from the debt. While Chapter 7 can be completed in as short as four months and it is not very expensive, you have to be eligible before you can file. Below, we have a calculator that you can use to approximate your Chapter 13 payment plan and if you are a suitable candidate for a Chapter 7.

After learning how to tell the two types of bankruptcies apart, we can now go more in-depth into Chapter 13 Bankruptcy in Utah.

2) Utah Specifics for Chapter 13 Bankruptcy

  1. Chapter 13 Bankruptcy Plan Payment in Utah
  2. Utah Bankruptcy Exemptions
  3. Chapter 13 Bankruptcy Utah Trustees
  4. Utah Bankruptcy Districts and Court Locations
  5. Is a Chapter 13 Bankruptcy the Right Choice?

3) Chapter 13 Bankruptcy Plan Payment in Utah

The Chapter 13 bankruptcy Utah plan payment estimate factors in the IRS National expense figures in addition to specific Utah expenses.

In most cases, the majority of debtors usually want to know whether they are eligible for Chapter 7. Also, they are always eager to know what sort of payment plan they would get in Chapter 13. If you choose to estimate a payment plan by yourself, it can be a bit hard due to the complex nature of the bankruptcy forms involved. To make it easier, we came up with the following calculator to shed some light on whether Chapter 7 is best for you. Besides, the calculator will help in estimating the kind of payment plan that Chapter 13 will offer you.

Estimate Your Utah Chapter 13 Payment

One of the most important things in a Chapter 13 is understanding whether your Chapter 13 plan payment is affordable. To help you estimate, we build the following Utah Chapter 13 Calculator to help you estimate your Chapter 13 plan payment.

Utah Means Testing

The calculator shown above factors in Utah means testing data found here to evaluate whether you are eligible for a Chapter 7. Also, there is information for the Utah Means Test starting November 1, 2020 in the table below.

# of PeopleAnnual Income

4) Chapter 13 Bankruptcy Utah Exemptions

Before choosing Chapter 13, consider whether you own assets that are above the exemptions. Even though you qualify for a Chapter 7, having a massive equity position in assets makes a Chapter 13 or debt settlement the more feasible option.

The state of Utah has several statutes and bankruptcy exemptions to be considered before you file for bankruptcy. In case you own assets that are above the Utah exemptions, then it is likely that they will be liquidated. You may considering reviewing all of the Utah bankruptcy exemptions before deciding whether to file a Chapter 13 bankruptcy.

5) Utah Bankruptcy Districts and Court Locations

There is just one bankruptcy district in Utah. However, there are two court locations. You can find more information about the courts below:

6) Chapter 13 Bankruptcy Utah Trustees

Liquidating the nonexempt assets of the debtor and administering the bankruptcy case are among the key responsibilities of the trustee. There are lots of Chapter 7 trustees but not as many Chapter 13 trustees. You can find the Chapter 13 bankruptcy Utah trustee below:

Lon A. Jenkins(801) 596-2884

Is a Chapter 13 Bankruptcy the Right Choice?

A Chapter 13 bankruptcy is a valid choice for those overwhelmed by debt and are ineligible for a Chapter 7 or don’t want to file Chapter 7. You may want to estimate your Chapter 13 plan payment before deciding to see if it’s affordable and compare alternative options.

Also, there are other alternatives; including debt management and debt settlement; therefore, it is recommended that you choose wisely while weighing in all the merits and demerits. To aid in your process, you may want to view the video below summarizing a Chapter 13 bankruptcy in Utah.

Our Chapter 13 calculator helps in comparing the options on the table and offers the pros and cons; therefore, the calculator can be used for research or a resource. Debt can be a source of great anxiety and a feeling of being overwhelmed. We trust that this article will play a significant role in your journey of being debt-free.

Post Author: Ben Tejes

Ben Tejes is a co-founder and CEO of Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. Ben specializes in Chapter 13 Bankruptcy, Debt Settlement, Chapter 7 Bankruptcy and debt payoff methods. In his free time, Ben enjoys spending time going on adventures with his wife and three young daughters.

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