Utah Bankruptcy Blog

Will Bankruptcy Get Rid Of All My Debts?

Some people assume that bankruptcy is like a magic wand that will make all your debts disappear. The truth is that there are a few debts — student loans and child support arrears, for example — that are not typically dischargeable in bankruptcy. Most people, even some lawyers, think that tax debt cannot be discharged in bankruptcy. It can. After our consultation I can give you get a better idea of which of your debts can and cannot be dealt with through bankruptcy.  More bankruptcy information can be found at www.dlblaw.com

HOW TO CHOOSE THE RIGHT BANKRUPTCY LAWYER

How do you find the right bankruptcy attorney?  This is a common question.  I ran across this article recently that may be of interest written by Orlando bankruptcy lawyer and Chapter 7 Trustee, Lori Patton. An experienced bankruptcy lawyer will not be offended and will be happy to answer them:

1. How much of your practice has been bankruptcy since the new law hit in 2005? (the answer needs to be at least 50% or higher)

2. How many bankruptcies have you completed since the law changed in 2005?

3. Did you do bankruptcy before the law changed? If yes, how many years of experience?

4. Are you involved in any voluntary bankruptcy bar groups? (The answer to this really needs to be at least NACBA –National Association of Consumer Bankruptcy Attorneys-)

5. Do the local bankruptcy judges know who you are? (you need a “yes” for this one)

6. Can you name all of the local Chapter 7 Trustees and do they all know who you are? (you need a “yes”)

7. Who is the local Chapter 13 Trustee and does he/she know who you are?

8. Who is the United States Trustee for this area and do they know who you are?

If the bankruptcy lawyer you are considering trusting with your major lifetime event cannot comfortably answer these questions to your satisfaction, it may be a sign to move on and find someone who can.  http://www.nationalbankruptcyforum.com/hiring-a-bankruptcy-lawyer/choosing-a-bankruptcy-lawyer-eight-questions-to-ask-before-signing-the-fee-agreement/

What should I do with my tax refund?

I get this question a lot from my clients.  If you are in a financial crisis here are a couple of ideas that may be useful:

PAY DOWN CREDIT CARD DEBT: Use your refund to pay off old debt. Usually the best bet to pay on is consumer credit debt (i.e. Credit Card debt)  this type of debt has the highest interest rates associated with it.  Remember it’s a bad idea to use the money to incur new debt, like a down payment on a new car, if you are in a financial crisis.

PAY FOR YOUR BANKRUPTCY:  Unfortunately filing for bankruptcy cost a bit of money.  Filing fees are up as are the other fee’s associated with bankruptcy.  Consult with an experienced bankruptcy attorney whom can advise you on the best options for use of tax returns since some acts, like repaying a family member, can be a problem to filing your case.

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Douglas L. Barrett Named To Utah "Legal Elite"

Press Release

For Immediate Release

 Orem, UT - Douglas L. Barrett of Orem has been named for the seventh consecutive year as one of the top bankruptcy lawyers in Utah in a recent poll conducted by Utah Business, a state-wide publication. The announcement was made in the January 2012 Edition of the magazine. The "Legal Elite" represent those Utah lawyers who their peers believe are the very best in their respective areas of practice.

 Barrett was selected for his expertise in "Bankruptcy Law" Barrett received his undergraduate degree from Brigham Young University at Provo in 1993 and graduated from Whittier Law School in 2000, where he was a distinguished member of the Moot Court Honors Board. During law school he interned as a Law Clerk for the Hon. James N. Barr, U.S. Bankruptcy Court Judge for the Central District of California. After graduation from law School he served as Law Clerk for the Hon. Lee M. Jackwig, Chief Judge U.S. Bankruptcy Court for the Southern District of Iowa.

 Mr. Barrett opened his own bankruptcy practice in Orem in 2001. He is well known for his aggressive representation of consumer debtors. During the past several years he has helped hundreds of people file for bankruptcy protection in the U.S. Bankruptcy Courts. He is a member of the National Association of Consumer Bankruptcy Attorneys and has been a frequent speaker on consumer bankruptcy law and personal finance issues throughout the state.

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What is a Hardship Discharge?

If after confirmation of a Chapter 13 Bankruptcy plan, circumstances arise that prevent the debtor from completing the plan the debtor may be able to obtain a hardship discharge. In such situations, the debtor may ask the court to grant a "hardship discharge." 11 U.S.C. § 1328(b). Generally, such a discharge is available only if: (1) the debtor's failure to complete plan payments is due to circumstances beyond the debtor's control and through no fault of the debtor; (2) creditors have received at least as much as they would have received in a chapter 7 liquidation case; and (3) modification of the plan is not possible. Injury or illness that precludes employment sufficient to fund even a modified plan may serve as the basis for a hardship discharge.

In Chapter 7 the hardship discharge is more limited than the discharge described above and does not apply to any debts that are nondischargeable. 11 U.S.C. § 523. More information on Utah bankruptcy can be found at www.bankruptcyprovo.co

Do I Have To Take A Class To File Bankruptcy In Utah?

Yes. Actually there are two required classes you must complete in a Utah bankruptcy. The first class, Credit Counseling, informs you of all your options and advises you if bankruptcy is a good option. This class can be taken over the internet. This must be completed at least a day before your case can be filed with the bankruptcy court. See www.cricketdebt.com for more information on classes and class content.

After your case is filed, you must complete a Financial Management class. This class will help you learn to budget your money, avoid the pitfalls that may have led to your bankruptcy filing, and help you to re-establish credit in the future. This course is also offered over the internet and must be completed before your case is over. If you fail to take the class you will be denied your discharge of debt in your bankruptcy. The Law Office of Douglas Barrett, LLC located in Orem, Utah can help you find the class that is right for you to file your Utah bankruptcy. Visit us on the web at www.dlblaw.com

HOW TO PAY FOR YOUR PROVO UTAH BANKRUPTCY?

One of the most common issues that my clients have is that they want to file for bankruptcy but they don’t have the money to do so.  Here are a couple options on how you can get money to pay your attorney:

Stop Paying Certain Bills:

If you are going to file for bankruptcy then there is little or no need for you continue to pay some bills.  Stop paying some of your unsecured debts, mostly your credit cards, and save that money to use for an attorney.  Don’t stop paying your utility bills, insurance, car payments (unless you are going to surrender the vehicle), or mortgage (unless you are going to surrender the home).

Sell some Assets:

If you don’t have the necessary money in the bank then you could sell some of your assets in order to file for bankruptcy.  Don’t sell these assets at below fair market value or to friends and family members.  If you have an mutual funds or stock accounts then you could sell or liquidate them to pay for your bankruptcy legal fees.

Ask Friends and Family to Help:

If you cannot come up with the money on your own then it may be time to call upon family and friends for a favor.  Inform them of your situation and ask them if they would be willing to help you out.

It is well worth the effort to come up with the money to pay for your bankruptcy legal fees.  Having your case done right with a successful outcome is well worth the price.  More information on filing bankruptcy in Provo can be found at www.Bankruptcyprovo.co .

NEW UTAH BANKRUPTCY COURT FEE SCHEDULE: EFFECTIVE 11/01/11

The Judicial Conference of the United States adopted a new court fee schedule on September 13, which will become effective November 1, 2011. The revenue generated by the fee change will go into the Judiciary’s budget.

The new filing fees will be:

·         Chapter 7: $306.00

·         Chapter 11: $1046.00

·         Chapter 13: $281.00

More Information on Utah Bankruptcy can be found at www.dlblaw.com

WHAT DOES THE PROPOSED PRINCIPAL PAYDOWN PLAN (PPP) LEGISLATION DO TO MORTGAGES IN CHAPTER 13 BANKRUPTCY?

The Principal Paydown Plan calls for a restructuring in Chapter 13 bankruptcy of certain underwater mortgages. 

Under this approach, homeowners will be able to eliminate negative equity, acquire modest equity and then reamortize the mortgage into a market rate loan.  The reduction of principal is not achieved by a cramdown, but rather by temporarily reducing the interest rate to 0% so that all payments made by the homeowner are applied to pay down the principal.  In exchange for this benefit, the homeowner would have to agree to a general settlement of claims against the servicer, trustee and investor.  This Plan will achieve a significant improvement in the overencumbered status of the home; provide needed and justifiable hope for the homeowner, many of whom have a legitimate claim against the servicer; and stabilize individual communities across the country, as well as the overall housing market.

This legislation is being sponsored by NACBA the National Association of Consumer Bankruptcy Attorneys.   More information on Chapter 13 Bankruptcy in Utah can be found at www.utahchapter13.com