Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a process that entitles you to a fresh financial start. In a Utah Chapter 7 bankruptcy, individuals can wipe out many types of unsecured debt. Unsecured debt is debt that you do not have to put up collateral for, such as a debt incurred from a credit card, or medical bills.
Chapter 7 Bankruptcies are available to individuals, married couples, sole proprietorships, partnerships, and corporations. Debtors are required to attend a meeting of creditors approximately one month after a case is filed.
The process for this type of bankruptcy usually takes about three to five months. Upon completion, the debtor’s includable debts are eliminated or discharged, meaning that the debtor no longer owes on those debts after the bankruptcy. Before you can file for a Chapter 7, you must go through credit counseling with an agency approved by the United States Trustee, and complete a debtor education course.
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Bankruptcy Benefits
Bankruptcy is the legal and ethical way to deal with debts that you cannot afford. There are different chapters, which may impact you differently. Some of the benefits of bankruptcy include:
- Relieve Stress
- Eliminate credit cards, medical & payday debts
- Eliminate eviction & repossession deficiencies
- Stop Wage Garnishment
- Stop Repossession
- Stop Collection Calls
- Stop Foreclosure
- Repair Credit
Debts Discharged in a Chapter 7 Bankruptcy
Most debts are dischargeable in a Chapter 7 bankruptcy, including medical bills, loans, credit cards, cash advances, and most judgments. However, there are some debts that may not be dischargeable, taxes, child support, student loans, criminal fines, debts not listed in the bankruptcy petition.
Assets:
The following is a list of the property exempt in a Chapter 7 Bankruptcy:
| Description | Amount |
| Real Property | Primary Residence: $42,700 / $85,400 Other: $5,100 / $10,200 |
| Clothing, except furs and jewelry; refrigerator, freezer, stove, microwave oven, washer, dryer, and sewing machine; health aids; food to last 12 months; beds and bedding; carpets; artwork done by, or depicting, a family member; burial plot; personal injury recoveries for yourself or a person you depend upon; wrongful death recoveries for a person you depended upon | No limit (reasonableness) |
| Motor Vehicle | $3,000 |
| Sofa, Chairs, and related furnishing for one household | $1,000 |
| Dining and kitchen tables for one household | $1,000 |
| Animals, books, and musical instruments | $1,000 |
| Heirlooms or other items of sentimental value | $1,000 |
| Tools of Trade | $5,000 |
Choose Your Payment
We let you choose a low cost upfront payment–that’s how committed we are to making filing bankruptcy as flexible as possible. Our goal is to making filing bankruptcy as simple, affordable, and convenient as possible. That’s why we’ve spent so much time finding ways to make it easier for you.
Provide Documents
Before we can file your case we will need copies of essential documents & information. You get this together now, so that you have everything in order to file quickly.
- Copy of your driver’s license for each party filing.
- Copy of your social security card (or original W-2) for each party filing.
- The last 7 months of all pay for each party filing.
- Copies of your state and federal tax returns for the 2 most recent years filed.
- Completion of our Questionnaire.
- Completion of the credit counseling course (you will receive instructions in a subsequent email)
Stop Creditors
As soon as your case is file the bankruptcy automatic stay immediately becomes effective stopping garnishments, creditor harassment, repossession, foreclosure, eviction and other creditor collections.