Utah Chapter 7 Bankruptcy Lawyer

Watton Law Group Can Help You File Chapter 7 Bankruptcy in Utah

When filing for Chapter 7 bankruptcy, you need an experienced team in your corner. That’s why thousands of Utah residents have trusted the lawyers at Watton Law Group for the last 25+ years. With an unmatched attention to detail and a commitment to helping you succeed, our lawyers have developed a proven process that makes filing Chapter 7 easy and painless for you. We’ve made it our mission to help you eliminate your debt in effort to live a more stable life.

The Chapter 7 bankruptcy lawyers at Watton Law Group can help you regain control of finances and stop creditors from harassing you. Contact us today to learn more.

On This Page:

• Understanding Chapter 7
• Stopping Debt Collection
• Affect on Credit Score
• Benefits of Chapter 7 Bankruptcy

Understanding Chapter 7 Bankruptcy in Utah

Chapter 7 bankruptcy is the most common form of bankruptcy filed, and is often referred to as a “Wipe Out” or “Fresh Start.” It is also known as "liquidation bankruptcy" because a trustee may sell certain non-exempt assets to pay off creditors. Chapter 7 is typically the quickest and simplest form of bankruptcy, and it is available to those who meet specific eligibility criteria.

To qualify for Chapter 7 bankruptcy, you must meet certain income requirements and pass the means test. The means test compares your income to the median income in your state. If your income is below the median, you generally qualify. If it's above the median, you'll need to pass a more detailed means test, which considers your expenses and disposable income.

The following is a general overview of the steps involved in a Chapter 7 bankruptcy in Utah:

1. Credit Counseling: Before you can file for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency. This course helps you explore alternatives to bankruptcy and understand your financial situation better.
2. Filing the Petition: Once you've determined your eligibility and completed the credit counseling requirement, you can file a bankruptcy petition in the Utah bankruptcy court. You'll need to provide detailed financial information, including your income, expenses, assets, and debts.
3. Automatic Stay: Upon filing, an automatic stay goes into effect. This legal protection prevents creditors from taking collection actions against you, such as wage garnishment, foreclosure, or repossession.
4. Meeting of Creditors: A few weeks after filing, you'll attend a meeting of creditors, also known as a 341 meeting. The bankruptcy trustee and your creditors have the opportunity to ask questions about your financial situation.
5. Asset Liquidation: In Chapter 7, a bankruptcy trustee may sell non-exempt property to pay off your unsecured debts. However, many assets are protected by exemptions under state or federal law, which vary by jurisdiction. Utah has its own set of exemptions that you can use to protect certain property from liquidation.
6. Discharge: If everything goes smoothly, and there are no objections from creditors or the trustee, you may receive a discharge of your qualifying debts within a few months. This discharge means you're no longer legally obligated to pay those debts, and creditors cannot pursue you for them.

Watton Law Group has over 25 years of experience in helping our clients wipe out debt, including medical bills, credit card debt, and personal loans. Our lawyers have developed a detailed process that is tailored to your individual financial situation and helps you understand Chapter 7 with one goal in mind: your peace of mind.

Contact Watton Law Group today to take the first step toward a more secure financial future.

Watton Law Group Can Stop Debt Collection Phone Calls

Once Watton Law Group files Chapter 7 on your behalf, the court will order creditors to stop contacting you in any way. Similar to a restraining order, debt collectors will be forbidden from suing you, garnishing wages, issuing home foreclosures, repossessing your vehicle, or taking any further collection actions.

How Will Chapter 7 Bankruptcy Affect Your Credit Score?

While filing for Chapter 7 will have an impact on your credit score, it’s the first important step in recovering your financial health. If you’re considering filing for bankruptcy, it is likely that your debt has probably already had a negative impact on your credit score. Furthermore, once you file, your debt-to-income ratio will instantly improve. While bankruptcy isn’t an instant fix, it certainly is a major step in the right direction.

Benefits of Chapter 7 Bankruptcy

Chapter 7 bankruptcy offers several benefits to individuals and businesses facing overwhelming debt.

Here are some of the primary advantages of filing for Chapter 7 bankruptcy:

• Debt Discharge: The most significant benefit of Chapter 7 bankruptcy is the discharge of most unsecured debts. This means that qualifying debts are wiped out, and you are no longer legally obligated to repay them. Common examples of dischargeable debts include credit card debt, medical bills, personal loans, and certain types of business debts.
• Immediate Relief: Filing for Chapter 7 bankruptcy triggers an automatic stay, which prevents creditors from pursuing collection actions against you. This means an immediate halt to creditor harassment, wage garnishment, foreclosure, repossession, and other aggressive collection efforts.
• Fresh Financial Start: Chapter 7 provides a clean slate, allowing you to start rebuilding your financial life without the burden of unmanageable debt. It can offer peace of mind and relief from the stress associated with overwhelming financial obligations.
• Speedy Resolution: Chapter 7 bankruptcy is generally a relatively quick process compared to other bankruptcy chapters. In many cases, the entire process can be completed in a few months, providing a swift resolution to your financial difficulties.
• No Repayment Plan: Unlike Chapter 13 bankruptcy, which involves a structured repayment plan, Chapter 7 does not require you to make ongoing payments to creditors. This can be advantageous if your income is insufficient to support a repayment plan.
• Protection of Exempt Assets: Each state has its own set of exemptions that allow you to protect certain assets from being sold by the bankruptcy trustee to pay off your debts. In many cases, individuals can retain essential assets like their home, car, and personal belongings.
• Improved Creditworthiness: While a Chapter 7 bankruptcy will appear on your credit report for up to ten years, it provides an opportunity for a fresh start. Over time, you can rebuild your credit by responsibly managing your finances, and many people are able to obtain credit again within a few years after bankruptcy.
• No Income Tax on Discharged Debt: Generally, debts discharged in Chapter 7 bankruptcy are not considered taxable income for federal income tax purposes. This means you won't owe taxes on the forgiven debt.

It's important to note that Chapter 7 bankruptcy also has some potential drawbacks and consequences, such as the impact on your credit score and the potential loss of non-exempt assets.

Additionally, not all debts are dischargeable, so it's essential to consult with our experienced bankruptcy attorney in Utah to determine if Chapter 7 is the right solution for your financial situation and to understand the specific implications in your case.

If you are interested in filing for Chapter 7 bankruptcy in Utah, contact Watton Law Group today at (801) 807-1770 to let us help you get started.