A Complete Know-How to Filing Bankruptcy in Utah
People living in Utah and considering to file Chapter 7 or Chapter 13 bankruptcy need to undergo credit counseling before filing the case. Even before you complete the petition and other essential forms and file them in the respective bankruptcy court in Utah, you need to attend a counseling session. Following the filing, you should complete the debtor counseling prior to receiving the discharge. What you should be aware of is though bankruptcy in Utah is mostly monitored by the federal law, there exists some state-specific information that you should know before filing the case. This is why you should seek expert assistance of bankruptcy attorney in American Fork or other regions in Utah.
Pre- Credit Counseling and Discharge Debtor Knowledge in Utah Related to Bankruptcy
To ensure qualifying for Chapter 13 and Chapter 7 bankruptcy, you must prove receiving proper credit counseling from an approved agency by the U.S Trustee in Utah. This should be done within the period of six months before filing bankruptcy. Additionally, you also need to enroll for a debtor education course before receiving the bankruptcy discharge.
Bankruptcy Exemptions in Utah
Utah holds some specific bankruptcy exemptions that help determining a lot of aspects related to the case. From the property that you can keep while filing Chapter 7 to the amount you need to repay the unsecured creditors with respect to Chapter 13, the exemptions help determining it all. Discussing with competent bankruptcy lawyers can help you understand the exemptions. In Utah, you should ensure using the state exemptions.
Completing Utah Bankruptcy Forms
While filing Chapter 13 or Chapter 7 bankruptcy in Utah, you should comply with several legal obligations to ensure a successful filing. This involves, completing a petition, several schedules including detailed information regarding your finances, and several other essential forms along with a lengthy form referred to as 'means test.'
Getting Utah Means Test Information
While filing bankruptcy in Utah, you should make a comparison between your income and a household's (of your size) median income in Utah. If you find your income to be less than the median, you can file Chapter 7. In case, you opt for Chapter 13 bankruptcy, you stand liable for a three-year repayment plan rather than a five-year plan.
If your income tends to be above the median income of the state, you can still qualify for Chapter 7. However, for this you need to give a detailed information regarding your payments and expenses with respect to secured debt. A specialized bankruptcy attorney in American Fork can guide you through the process.
Here's which form helps while filing Chapter 7 and Chapter 13 bankruptcy:
i) Form 22A –Present Monthly Income Statement and Means Calculation (Chapter 7)
ii) Form 22C – Present Monthly Income Statement and Disposable Income and Commitment Period Calculation(Chapter 13)
Here's a look at finding specific figures in Utah for the 'means test' forms-
- Median Income Figure in Utah: For a family of 2, the median income is $55,555. For a 4 member family, the median income is $64,780. For more than a 4 member family, you need to add $7,500 per individual for calculating the median income.(note – these figures are subject to periodic change). For instance, Harry's annual income is $52,000, he will clearly pass the means test as his income is less than the median figure.
- General Deductions: Forms 22A and 22C have a complete list of categories like transportation, housing, childcare, and food. For specific categories like childcare, you usually provide the amount you tend to spend. For other categories, you provide a predetermined amount based on national, state, and regional standards. For instance,national standards apply for clothing, food, and some other expenses, while utilities and housing are based on local standards and transportation cost is based on regional standard. Discussing with bankruptcy attorney in American Fork can also help you through the understanding.
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