One of the most prevalent myths about filing for bankruptcy is the belief that your debts will all be excused by the court. While this can be true in some cases, several different types of debts are not considered “dischargeable.”
Below, we’re diving into the type of debts that can be left on your record after filing for a Chapter 7 bankruptcy, exploring Utah bankruptcy laws and uncovering the key differences between dischargeable and non-dischargeable debts.
Dischargeable vs. non-dischargeable debts
By legal definition, a dischargeable debt is a debt that will not be eliminated (or that legally cannot be eliminated) during the filing process. Restrictions around dischargeable debts are outlined via the 11 U.S.C.A. § 523. Dischargeable debts are the opposite and can be removed by undergoing the Chapter 7 filing process.
What debts are considered non-dischargeable during Chapter 7 filing in Utah?
There are many exceptions to the dischargeable debt portion of bankruptcy cases. The ultimate goal of bankruptcy is to alleviate some of the financial burden from the debtor and also fairly repay the creditor as much as possible within the time constraints ruled on by the court. With that being said, there are certain exceptions to what can be removed in order to protect both the interests of the debtor and the creditor.
Below are some of the non-dischargeable debts commonly encountered during the Chapter 7 filing process:
- Luxury debts: While the term is broad, this generally applies to any sort of “extreme” or “luxurious” goods purchased within the 90-day filing period. Examples of these types of purchases include: designer or brand-name products, “extra” personal care services, expensive non-essential experiences, etc.
- Crime-related debts: Sometimes during the course of a bankruptcy filing case, debt will surface that’s tied to some type of crime. Examples of crime-related debt include any outstanding balance tied to fraud, embezzlement or other crimes.
- Divorce debts: This would include debts from any sort of outstanding settlement agreement. It may also apply to any sort of outstanding child support payments due. This may not be considered non-dischargeable, however, if you cannot afford the rate ruled upon or if the recipient wouldn’t necessarily benefit from the payment. Your lawyer can help you understand the most likely resolution for your specific case.
- Outstanding tax debts: Any sort of federal, state or local taxes outstanding would still need to be paid under the currently outlined precedent.
- Certain student loan debts: While this may change due to the possibility of forgiveness programs, it is likely that certain student loans and outstanding fees would be considered non-dischargeable debts.
While additional costs and fees may fall into this category, these are among the most common non-dischargeable debts that you’ll find through the Chapter 7 bankruptcy process.
What debts can you discharge with a Chapter 7 bankruptcy?
Now that we’ve covered what is considered a non-dischargeable debt, let’s go over what can be discharged from your record after successfully filing for Chapter 7 bankruptcy.
- Credit card charges: In most cases (excluding luxury purchases and service fees), your debt from your lines of credit can be discharged.
- Medical bills: Outstanding medical bills may be able to be discharged through Chapter 7 filing. It’s important to note that this can be very helpful for those under financial strain, as medical debts can be a main reason that one files for this type of bankruptcy and financial relief.
- Past-due rent: This is variable and depends on certain circumstances surrounding your case. However, in many cases, it is possible to get partial or total rent forgiveness. The same applies to any relevant home expenditures or living expenses, such as utility charges for electricity, gas or water.
- Lease fees: If you use anything under a lease agreement, relevant fees or past-due rent on the item can be forgiven properly through a Chapter 7 bankruptcy.
- Overpayments: In cases where the filer is on social programs (such as welfare, Social Security, and Veteran’s Assistance programs), there may be instances of overpayment. Normally, the recipient would need to repay this. However, under Chapter 7, repayment requests for overpayments may be halted if the judge includes it in the finalized ruling.
How can an attorney help with a Chapter 7 bankruptcy case?
Your attorney can be extremely helpful to you throughout the Chapter 7 filing process. They can assist you with navigating complex court-mandated processes, administrative filing steps and arguing in your favor during the subsequent hearings and court appointments. They can also work with you to compile the necessary paperwork ahead of time to help streamline the process as much as possible.
If you’re considering bankruptcy, the team at Ascent Law wants to help. Our experts have years of experience and a track record of success navigating complex bankruptcy cases and are confident that we can bring your case to resolution. For more information and to book your free intro call today, please visit our website. We look forward to connecting with you soon!
Salt Lake City
Salt Lake City, Utah
|City of Salt Lake City|
“The Crossroads of the West”
|Named for||Great Salt Lake|
|• Type||Strong Mayor–council|
|• Mayor||Erin Mendenhall (D)|
|• City||110.81 sq mi (286.99 km2)|
|• Land||110.34 sq mi (285.77 km2)|
|• Water||0.47 sq mi (1.22 km2)|
||4,327 ft (1,288 m)|
|• Rank||122nd in the United States
1st in Utah
|• Density||1,797.52/sq mi (701.84/km2)|
| • Urban
||1,021,243 (US: 42nd)|
| • Metro
||1,257,936 (US: 47th)|
| • CSA
||2,606,548 (US: 22nd)|
|Time zone||UTC−7 (Mountain)|
|• Summer (DST)||UTC−6|
|Area codes||801, 385|
|GNIS feature ID||1454997|
|Major airport||Salt Lake City International Airport|
|Website||Salt Lake City Government|
Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the capital and most populous city of Utah, as well as the seat of Salt Lake County, the most populous county in Utah. With a population of 199,723 in 2020, the city is the core of the Salt Lake City metropolitan area, which had a population of 1,257,936 at the 2020 census. Salt Lake City is further situated within a larger metropolis known as the Salt Lake City–Ogden–Provo Combined Statistical Area, a corridor of contiguous urban and suburban development stretched along a 120-mile (190 km) segment of the Wasatch Front, comprising a population of 2,606,548 (as of 2018 estimates), making it the 22nd largest in the nation. It is also the central core of the larger of only two major urban areas located within the Great Basin (the other being Reno, Nevada).
Salt Lake City was founded July 24, 1847, by early pioneer settlers, led by Brigham Young, who were seeking to escape persecution they had experienced while living farther east. The Mormon pioneers, as they would come to be known, entered a semi-arid valley and immediately began planning and building an extensive irrigation network which could feed the population and foster future growth. Salt Lake City’s street grid system is based on a standard compass grid plan, with the southeast corner of Temple Square (the area containing the Salt Lake Temple in downtown Salt Lake City) serving as the origin of the Salt Lake meridian. Owing to its proximity to the Great Salt Lake, the city was originally named Great Salt Lake City. In 1868, the word “Great” was dropped from the city’s name.
Immigration of international members of The Church of Jesus Christ of Latter-day Saints, mining booms, and the construction of the first transcontinental railroad initially brought economic growth, and the city was nicknamed “The Crossroads of the West”. It was traversed by the Lincoln Highway, the first transcontinental highway, in 1913. Two major cross-country freeways, I-15 and I-80, now intersect in the city. The city also has a belt route, I-215.
Salt Lake City has developed a strong tourist industry based primarily on skiing and outdoor recreation. It hosted the 2002 Winter Olympics. It is known for its politically progressive and diverse culture, which stands at contrast with the rest of the state’s conservative leanings. It is home to a significant LGBT community and hosts the annual Utah Pride Festival. It is the industrial banking center of the United States. Salt Lake City and the surrounding area are also the location of several institutions of higher education including the state’s flagship research school, the University of Utah. Sustained drought in Utah has more recently strained Salt Lake City’s water security and caused the Great Salt Lake level drop to record low levels, and impacting the state’s economy, of which the Wasatch Front area anchored by Salt Lake City constitutes 80%.
About Salt Lake City, Utah
Neighborhoods in Salt Lake City, Utah
Poplar Grove, The Avenues, Ballpark, Lower Avenues, Downtown, Woodbury, Central City, Neighborhood House, Salt Lake City Community Development, Rio Grande, The Neighborhood Hive, Neighborhood Services, University Neighborhood Partners, Salt Lake City, Neighborhood Auto Service, Sunnyside Park, Building at Rear, 537 West 200 South, Washington Square Park, Area 51, Brigham Young Historic Park
Things To Do in Salt Lake City, Utah
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Reviews for Ascent Law LLC Salt Lake City, Utah
We've gotten divorce and child custody work from Ascent Law since the beginning because of my ex. We love this divorce firm! Staff is gentle, friendly and skilled. Tanya knows her stuff. Nicole is good and Ryan is fun. Really, all the staff here are careful, kind and flexible. They always answer all my questions, explain what they're doing and provide great legal services. I personally think they are the best for divorce in Utah.
I have had an excellent experience with Ascent Law, Michael Reed is an absolutely incredible attorney. He is 100% honest and straight forward through the entire legal process of things, he also has a wonderful approach to helping better understand certain agreements, rights, and legal standing of matters, to where it was easy to know whats going on the entire process. I appreciate the competency, genuine effort put forth, and assistance I received from Ascent and attorney Michael Reed, and I will be calling these guys if ever I have the need again for their legal assistance! 5star review Wonderful attorneys!
This review is well deserved for Ryan and Josh. New clients should know they are worth the 5 star rating we give them. We needed 2 sessions from them because of the complexity of the matter, but they are both very passionate about his helping others in need. My sister needed bankruptcy and I needed divorce. Sometimes they go hand in hand but a large shout out to this team - also Nicole is one of the sweetest people you ever did meet - she offered me warm cookies!
Mike Anderson and his colleagues & staff are knowledgeable, attentive and caring. In a difficult and complex case that eventually went to trial, Mike was the voice of reason and the confidence I needed. His courtroom abilities are amazing and I felt his defense of me was incredible. His quick thinking and expertise allowed for a positive result when I felt the World was crumbling. His compassion, after the case, has helped me return to a good life. I trust Mike and his staff. They are friendly and very good at what they do.
I worked with Attorney Alex and Paralegal Ami in my divorce case. I got to know the team very well over the course of two years. I cannot think of a better team to have worked with. Ami and Alex are not only exceptional law professions who are very knowledgeable and thorough, they are also the best human beings who empathize with the emotions I was experiencing. Alex was conscious of my budget and worked efficiently to try to reduce unnecessary legal expenses. My case also involved some dealings with a foreign country that Alex and his team had previously dealt with. They did an amazing job addressing cultural barriers in a very respectful manner and did not fall short in quality of work or in standards when dealing with some of these new challenges. Ami deserves a medal for being extremely professional, calming, and compassionate when it is needed most. When you need family law attorneys, call this firm. I now feel I can move forward with grace and dignity.