No one wants to have to declare bankruptcy, but sometimes you’ve gotten yourself in so much debt that you are basically going to ruin your credit anyway. When you declare bankruptcy in Utah, it will stay on your credit report for a period of seven to 10 years. During this time, you can take the needed steps to repair your credit, so it’s like being given a fresh start. Odds are that if you are only paying your minimum payments, can’t find a way out of debt within 5 years, are getting foreclosure notices, or have had a huge financial setback such as losing your job, then you should seek bankruptcy.
Filing Chapter 7 bankruptcy can be accomplished by first contacting a lawyer. Your lawyer will have you gather up some information that is necessary to your petition such as: the source and amount of your income, how frequently you are paid, a comprehensive list of all your property, and a list of all your living expenses. This information will be used to fill out the various forms such as the petition and the schedules. These must be filed with the Utah district bankruptcy court. The cost of filing for Chapter 7 is $299.
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When you declare bankruptcy in Utah, there is an automatic stay which means you will no longer be hassled by your creditors. Also, any foreclosures or lawsuits against you must be dropped. If anyone that you owe money to wants to contact you in order to collect, they must prove to the judge pressing over the case that they have due cause. For example, if certain property may lose value during the bankruptcy process. If they do decide that they want to discuss this with the judge, they must do so after the hearing.
If you learn anything about declaring bankruptcy in Utah, make sure it is the exemptions available to you. An exemption is a type of property that you may keep without having to worry about the creditors taking it from you to cover your debts. However, they must be declared to be legal. In the state of Utah you will be allotted the following exemptions: homestead to $20,000, washer, dryer, refrigerator, freezer, stove, microwave oven, sewing machines, carpets, burial plot, health aids, disability benefits, veteran’s benefits, child support, work vehicle to $2,500, and wages up to 75 per cent.