WHAT IS CHAPTER 13 BANKRUPTCY?

To be eligible to be a Chapter 13 debtor, individuals must meet, among other things, the following two requirements: (i) they must have a regular income, and (ii) their debts must not exceed a certain amount. If the individual’s current monthly income is less than the applicable state median income, the plan will generally be set up for three years, although the court may approve a longer plan. If the debtor’s current monthly income is greater than the applicable state median, the plan is generally for five years.

Chapter 13 bankruptcy filing is a way for individuals to undergo a financial reorganization supervised by a federal Bankruptcy Court. The Bankruptcy Code anticipates the goal of a Chapter 13 case as enabling income-receiving debtors debt rehabilitation provided they fulfill a court-approved plan. Compare the goal of Chapter 13 with the relief contemplated in Chapter 7 that offers immediate, complete relief of many oppressive debt(s).

Under Chapter 13, the debtor proposes a plan to pay his creditors over a 3 to 5 year period. During this period, his creditors cannot attempt to collect on the individual’s previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed.

For more information on Chapter 13 Bankruptcy in Utah check out: www.utahchapter13.com

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CAN I FILE A CHAPTER 13 BANKRUPTCY AFTER I FILE A CHAPTER 7?

If you’ve filed for bankruptcy under Chapter 7 and received a discharge and are still struggling with debt, you may be able to file again under Chapter 13. The catch, however, is that you will probably have to wait a few years before re-filing.

In theory, individuals can file for bankruptcy as many times as they want, but there are some time limits and debt limits that apply to anyone trying to file again.

For complete answers on filing Chapter 13 after Chapter 7, speak with a Utah bankruptcy lawyer at 801-221-9911 or at www.dlblaw.com.

Can I change from a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy or vice versa at a later date?

Yes, it’s called “Motion to Convert” and can be done after you’ve filed for either chapter, also note that the trustee can also request a conversion.
For instance, if your chapter 13 fails, either you or the creditor, may request a conversion to chapter 7. Likewise if the trustee thinks money might be available for unsecured creditors they may make a motion to convert your chapter 7 to a chapter 13. More information on Utah Chapter 13 Bankruptcy can be found HERE.

Can I change from a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy or vice versa at a later date?

Yes, It can be done after you’ve filed for either chapter, also note that the trustee can also request a conversion.
For instance, if your chapter 13 fails, either you or the creditor, may request a conversion to chapter 7. Likewise if the trustee thinks money might be available for unsecured creditors they may make a motion to convert your chapter 7 to a chapter 13. More information on Utah Chapter 13 Bankruptcy can be found HERE.

What types of Utah bankruptcy cases are there?

Chapter 7 (Liquidation)
Chapter 7 is designed to repay debts owed to creditors by selling most of the debtor’s property. When a Chapter 7 case is filed, a trustee is appointed to take over the debtor’s property for the benefit of the debtor’s creditors. The debtor, however, is allowed to keep a limited amount of “exempt” property specified by law. The trustee then sells all non-exempt property of the debtor and distributes it to creditors in accordance with procedures set forth in the bankruptcy laws. Visit www.utahchapter7.com for more information.
Chapter 13 (Debt Adjustment of an Individual)
In a Chapter 13 bankruptcy, the debtor may keep his or her property, but must repay creditors in installments taken from the debtor’s future earnings. A debtor is required to submit a plan for approval by the court specifying how and when the debts will be repaid to creditors. A trustee is appointed in a Chapter 13 case, and a portion of the debtor’s future income in most cases is paid to the trustee, who then pays creditors. Visit www.utahchapter13.com for more information.
Chapter 11 (Reorganization)
Chapter 11 is designed mainly to give an ongoing business an opportunity to resolve financial problems through reorganization. A trustee is not normally appointed. The debtor is allowed to continue to operate the business under court supervision. Visit www.dlblaw.com for more information.
Chapter 12 (Debt Adjustment of a Family Farmer)
Chapter 12 is similar in many respects to Chapter 13, except that it is available only to family farmers.
Chapter 9 (Debt Adjustment of a Municipality)
Chapter 9 is available only to a political subdivision (i.e., a city, town, or county), public agency, or other instrumentality of a state.