Utah Chapter 7 and Chapter 13 Bankruptcy

In Utah, individuals who are struggling with debts, have the right to file bankruptcy so they can get their debts under control and also receive protection from their creditors harassing them.

The Utah bankruptcy laws provide individuals with the right to file under either chapter 7 or chapter 13 of the Bankruptcy Code.

Utah chapter 7 is a liquidation bankruptcy. Debtors in Utah filing under chapter 7 must turn over any of their property that is not protected by the bankruptcy exemptions for liquidation. However, most debtors filing chapter 7 have no property that is not protected by the bankruptcy exemptions so chapter 7 provides a relatively fresh start; debts can be eliminated in as little as 4 months with chapter 7. Chapter 7 is intended for debtors wwith little or no assets and income.

Chapter 13 in Utah is a reorganization bankruptcy popular for debtors with more income and assets, especially if the assets are not protected by the UT bankruptcy exemptions. Chapter 13 allows debtors to reorganize their debts into a more manageable debt repayment plan.

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