Chapter 7

Utah Chapter 7 Bankruptcy Information

Why should I file a Chapter 7 bankruptcy in Utah? Because you owe more debt than you can afford to repay and the advantages of a Chapter 13 bankruptcy aren’t necessary.

Debt Free Ahead SignChapter 7 Bankruptcy is also known as a liquidation bankruptcy.  In a Chapter 7 bankrupty a person is allowed to keep all exempt assets, the non-exempt assets may then be sold (but often are not) to pay creditors.  At your initial consultation I will review your assets with you to determine what, if anything, you could lose by filing bankruptcy.  The result of a successful bankruptcy proceeding is a “discharge,” which releases the debtor from payment of the affected debts.

When a Chapter 7 bankruptcy is filed all collection actions immediately stop (including lawsuits and wage garnishments).  About a month after filing we will go to a “meeting of creditors” or “341 Meeting” with you.  In this meeting you will be asked some basic quesitons and your portion of the meeting will usually only last about 5 minutes. We will thoroughly and accuratly review your situation with you and prepare your bankruptcy documents so that this meeting will be as simple as possible.  Most creditors don’t attend the meeting because there is usually little they can do to interfere with your right to file bankruptcy. 

If your case is a “no asset” case, meaning there is nothing for the trustee to take, then your case will close about 2 – 3 months after your creditors meeting.  If you do have assets to be distributed then the case will go on substantially longer while the trustee distributes the assets to your creditors.  Generally, it shouldn’t be a surprise that your case becomes an asset case.  Part of the benefit of hiring an attorney is to have someone that can identify these issues before hand and determine what actions can be taken to legally minimize the assets that a bankruptcy trustee can take.  There are several things that may be done to prepare for your bankruptcy filing and there are also several things that should absolutely NOT be done.

For a free review of your specific situation you can contact us by phone at (435) 627-1260 or by submitting the Contact Us form on the side of this page. Consultations can usually be scheduled for the same day or the following day.  More detailed Utah bankruptcy information can be found on the Frequently Asked Questions page or the Bankruptcy Cost page.