WHAT WILL BANKRUPTCY DO TO MY FUTURE CREDIT?

The effect of a Utah bankruptcy on your credit and credit score is a that I am asked almost daily. Your future credit is going to be based on the good things you do after you file for bankruptcy. Creditors look to see what steps you are taking to be financially responsible.
I suggest that you take these steps as soon as possible after you file:
• Start to build your credit score by getting a low limit credit card, a secured credit card or personal loan. Don’t exceed 30% of your available credit each month and pay your balance off in full each month.
• Six months after you bankruptcy is closed order your credit report from the three credit bureaus. Verify that the reports say your debts have been “discharged in bankruptcy.”
• If you have student loans, try to pay more than the minimum required each month.
• Do not co-sign for a loan. Ever.
• If you intend to keep your car, sign a reaffirmation agreement with your lender.
You need to step up and manage your finances wisely after a bankruptcy. I suggest you really look at a bankruptcy as a fresh start and do the things now with your finances that you wish you would have done years ago. All of us can learn from our past but learning the mistake is useless unless we act on what we have learned. Click HERE to find information on financial challenges of the rich and famous and see what they did to overcome their financial challenges.

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Can I transfer my assets to a friend/relative before I file for Bankruptcy?

NO. This is something we call a “fraudulent conveyance”, do not do this, you can get yourself in big trouble. Often right exemption planning ( where you legally arrange your assets to take full advantage of your allowable exemptions) can legally achieve the same results that you are trying to through a fraudulent conveyance. So don’t make a mistake that will cost you a lot more later on. For more information on Utah bankrupcy click HERE to visit my firm.

CAN I ELIMINATE ALL OF MY DEBT THROUGH BANKRUPTCY?

The simple answer is no. For the most part, credit card debt is generally subject to discharge, but in some instances it may not be. For example, credit that was issued based on fraudulent information by the debtor will not be discharged. Other debt, such as child support, spousal maintenance, and outstanding taxes will likewise not be discharged. In Utah the best way to know about your personal situation is to discuss your case with a Utah bankruptcy attorney.

WHAT IS THE “AUTOMATIC STAY” IN BANKRUPTCY?

Under bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, 11 U.S.C. § 362, the stay begins at the moment the bankruptcy petition is filed. Secured creditors may, however, petition the bankruptcy court for relief from the automatic stay upon a showing of cause. More information on stopping creditor harassment can be found at www.dlblaw.com

WHAT IS CHAPTER 12 BANKRUPTCY?

Chapter 12 Bankruptcy provides debt reorganization for individuals or partnerships classified as “family farmers” or “family fishermen”. Chapter 12 is nearly identical to Chapter 13, in that it involves establishing a plan to repay debts over the course of a three to five year period. However, Chapter 12 includes several provisional differences that specifically address needs unique to owners in the farm and fishing industries. More information on Utah Chapter 12 Bankruptcy can be found at http://www.dlblaw.com .

CAN A BANRUPTCY DISCHARGE BE REVOKED?

A discharge may be revoked under certain circumstances. For instance, a trustee, creditor, or the United States trustee may request that the court revoke the debtor’s discharge in a chapter 7 case based on:

• Allegations that the debtor obtained the discharge fraudulently;
• the debtor failed to disclose the fact that he or she acquired or became entitled to acquire property that would constitute property of the bankruptcy estate or;
• the debtor committed one of several acts of impropriety described in section 727(a)(6) of the Bankruptcy Code.

Usually, a request to revoke the discharge must be filed within one year after the granting of the discharge or, in some cases, before the date that the case is closed. It is up to the court to determine whether such allegations are true and, if so, to revoke the discharge.

In a chapter 13 case, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge.

WHAT IS THE “AUTOMATIC STAY” IN BANKRUPTCY?

Under bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, 11 U.S.C. § 362, the stay begins at the moment the bankruptcy petition is filed. Secured creditors may, however, petition the bankruptcy court for relief from the automatic stay upon a showing of cause. More information on stopping creditor harassment can be found at www.dlblaw.com .