Utah County Fresh Start
Utah Chapter 13 Bankruptcy
What is Utah Chapter 13 Bankruptcy?
When a debtor files Utah Chapter 13 bankruptcy, the court will not require that he or she give up their non-exempt assets as the court does with Chapter 7 bankruptcy. The court requires the debtor to submit a payment plan that the court will evaluate and determine whether it is satisfactory. This payment plan will allow the debtor to keep all his or her assets but will require that the debtor live on a strict budget and use the rest of his or her income to pay off debt.
During the Utah Chapter 13 payment plan period, creditors cannot charge interest to the debts and when the debtor makes payments, the whole amount goes to the principal of the debt. This payment plan can last anywhere from 3 to 5 years. The court then give the debtor a discharge of any unsecured debts and the end of the Utah Chapter 13 payment plan.
Who Files Utah Chapter 13 Bankruptcy?
Utah Chapter 13 bankruptcy best suits people who have a steady income and many non-exempt assets. The main requirement for Utah Chapter 13 is that the debtor must have large enough of an income to pay for his or her basic needs and still make payments according to an approved payment plan.
Most people filing Utah Chapter 13 bankruptcy want to pay their debts but simple need some help to get back on top of their debts. Chapter 13 bankruptcy is good for that type of people because the court gives the debtor a chance and time period to pay off their debt.
Free Utah Chapter 13 Evaluation
Utah County Fresh Start has years of experience with Utah Chapter 13 bankruptcy and can help you get on the path to financial security. Fill out our free bankruptcy evaluation today to learn how Utah Chapter 13 can get you back on top of your debt.
