Bankruptcy in Utah is a legal process through which some of the debts of an individual or a business are absolved (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult procedure. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Utah bankruptcy lawyer can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your particular case.
Types of Bankruptcy in Utah
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Utah will be the same as everywhere else in the United States. There are 2 basic forms of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy usually used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
In Utah, Chapter 7 bankruptcy is referred to as "liquidation." The court will conduct an accounting of all of the debtor's assets, and determine which ones should be sold to help pay off the debts. Many classes of property, such as homes and cars, are exempt from this requirement, and therefore don't have to be sold. Once all of the eligible property is sold off, and the proceeds given to the creditors, the rest of the debt is excused. Chapter 13 bankruptcy involves restructuring, rather than discharging, one's debt. Essentially, the court structures a debt repayment plan meant to allow the debtor to pay off his or her debt in manageable installments, while allowing the debtors to eventually collect at least some of what is owed to them.
Chapter 11 bankruptcy is normally used by businesses, rather than individuals. Much like Chapter 13, it involves reorganization of debts. It compels the debtor to come up with a reorganization plan, but this plan has to be approved by a majority vote of participating creditors. Once it is approved, the company is obligated to carry it out.
How Can a Utah Bankruptcy Lawyer Help?
Filing for bankruptcy is a major decision. While it can be beneficial, it's virtually guaranteed that there will be some negative consequences, such as damage to one's credit. Of course, with the advice of an Utah bankruptcy lawyer, it's possible that you will find the benefits to outweigh the costs, but only a bankruptcy lawyer can help you make that decision.
Interesting Facts About Utah
Utah is located in the Western region of the U.S. It has over 2.7 million residents, with about 80% of the population living near Salt Lake City. Utah is an important state in terms of technology and research, heavy industry, and outdoor recreational tourism. Utah became a state on January 4, 1986.
Salt Lake City is Utah's state capital and is a center of economic and social life. The state's Capitol Building is located there. Utah's state Supreme Court used to meet in the Capitol Building. Now, the Utah Supreme Court convenes at the Scott M. Matheson courthouse, also located in Salt Lake City. The multi-million dollar Matheson courthouse has been nicknamed "The Taj Mahal" in reference to its extraordinary cost.
Other courts of law in Utah include the Justice Courts, District Courts, and the Courts of Appeals. The state judiciary also maintains an online media resource center that assists media representatives in covering trials. Utah's laws are among the most restrictive in the nation. For example, the state has many laws outlawing activities such as gambling and it places heavy restrictions on the sale of alcohol.
Recognizing the community's legal needs, the Utah State Bar has officially partnered with LegalMatch. The state of Utah currently uses LegalMatch as its official attorney-client matching service. You can find lawyers in Utah through LegalMatch by posting your case through our online system. Utah lawyers offer services in many fields in order to meet the legal needs of Utah residents.