Recent Blog Posts in July 2010

Most people do not realize that student loans are not dischargeable under Chapter 7 or Chapter 13 bankruptcy.  Only unsecured debt, like credit card debt, is dischargeable. Student loans are considered a secured debt, which means that even if people file for consumer bankruptcy, they will still be responsible for paying back educational loans.

The only way people may be able to avoid paying their student loans under bankruptcy is by proving the loans present an undue hardship, which is quite difficult to accomplish.  In order to prove undue hardship, people will have to file a lawsuit with their bankruptcy proceedings and present evidence to a bankruptcy judge that paying their student loans would be a substantial financial burden. Should people plan to take this route, they will definitely need assistance from a skilled bankruptcy lawyer.

If you have questions about how filing for bankruptcy in Utah will impact the debt accumulated by your student loans, contact the Stone Law Firm and set up a consultation with a Salt Lake City bankruptcy lawyer.

When people file for Chapter 7 or Chapter 13 bankruptcy in Utah, they will be responsible for fulfilling paperwork production requirements.  These requirements are outlined by Section 521 (a)(1)(B) and in order to move forward with bankruptcy, people must produce the following documents:

§  An attorney certificate.  As required by Section 342(b) of the Code, people must have a certificate or attorney or a petition preparer that shows they were given information notice.

§  Monthly net income statement.

§  Proof of income.  People must submit specific proof of income, such as pay stubs, that were received 60 days before their bankruptcy petitions were filed.

§  Anticipated change of income.  A statement must disclose any expected changes in increased income or expenditures over a 12 month period following the filing of a bankruptcy petition. 

§  Educational IRA (individual retirement account).  This is filed with the court to record interests in an educational IRA.

If you have questions about what documents must be produced when you file for bankruptcy in Utah, contact the Stone Law Firm and speak with a Salt Lake City bankruptcy attorney.

Before people can file for Chapter 7 bankruptcy  or Chapter 13 bankruptcy, they must complete credit counseling as it is mandatory requirement in the United States.  Below, our firm addresses some common questions people have about credit counseling:

What is credit counseling?
This is a form of financial counseling where people who are filing for bankruptcy meet with a qualified agent or individual that is approved of by the U.S. Trustee.  During the meeting, people's income, assets and debt are reviewed and they are provided with information related to debt management and the bankruptcy process.

When must credit counseling be completed?
People must complete credit counseling 180 days prior to filing for Chapter 7 or Chapter 13.  After people have completed credit counseling, they receive a certificate of completion as proof.

How long does it take?
Generally, a credit counseling session takes 60 to 90 minutes.

How much does it cost?
A typical credit counseling session costs around $50.00.

If you have questions about the bankruptcy process and steps you must take, contact our law office and schedule an appointment with a Salt Lake City bankruptcy lawyer from our firm.

Generally, people choose to file for Chapter 7 bankruptcy when they realize that they cannot keep up with their debt.  People who consider Chapter 7 usually know that they cannot afford to repay the debt that they owe over time as they would if filing for Chapter 13 bankruptcy.  They may also want to have their debt discharged, which means that all the balances they owe for unsecured debt would be eliminated.

When people are thinking about filing for Chapter 7, they may have long-term financial problems, multiple sources of debt or may be at risk for losing their homes.  People also tend to file for Chapter 7 when they become unemployed, divorced or suffer from an illness.

As you can see, there are several reasons why people may choose to file for Chapter 7 bankruptcy.  If some of these reasons apply to your situation or if you have differing reasons for considering Chapter 7 in Utah, why not take the time to speak with a Salt Lake City bankruptcy attorney?  This way, you will receive the information you need to make an educated decision.  Contact the Stone Law Firm now!

In the month of June, RealtyTrac reported that national foreclosures continued to decrease.  Compared to the month of May, foreclosures dropped by 3%.  In the month of June, RealtyTrac says that 313,841 homes were foreclosed in the United States.

On a state-wide basis, not much changed.  The states with the highest foreclosure rates remained consistent with the top four being Nevada, Florida, Arizona and California.  The state of Utah was reported as number five, taking the spot from Michigan.

For the most part, the majority of states experienced a drop in foreclosure rates, which may be promising news for real estate market.  Additionally, there was a 30% decrease in the foreclosure rate compared to the same timeframe last year.

If you are facing foreclosure and would like to learn more about filing for consumer bankruptcy in the state of Utah, a Salt Lake City bankruptcy lawyer at the Stone Law Firm can help.  Contact us today to set up an initial consultation.

There are countless people in the United States that are currently dealing with or who have had to deal with creditor harassment due to credit card debt.  The question most people ask when they are harassed by their creditors is how can they get the harassment to stop?  Below, we have provided several tips for those who wish to put an end to creditor harassment once and for all:

1)  If you find that you are unable to pay your bill on time, avoid harassment by calling your creditor first.  Explain that you are unable to pay your bill and ask for payment options.  By doing this, you will combat creditor harassment before it happens as it is usually in your creditors' best interest to work with you.

2)  If you are currently being harassed by your creditors, write a cease letter.  In your letter, you should ask your creditors to stop harassing you.  Tell them why you cannot pay your bill and what your payment intentions are.   By law, creditors must stop collection efforts after they have received a written request.

3)  Finally, if harassment persists, it is a wise idea to obtain representation from a bankruptcy attorney that handles creditor harassment cases.

If you are struggling with creditor harassment, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

Anytime people plan to file for Chapter 7 in Utah or any other state, they will have to take the means test to determine if they meet bankruptcy eligibility requirements.  If you would like to know whether or not your means test result will allow you to file for Chapter 7 bankruptcy, subtract the following from your current monthly income:

§  any secured debt (car loans or mortgage payments) that are due over five years divided by 60

§  mortgage or vehicle arrearages that could be cured in a Chapter 13 plan divided by 60

§  prior debts (taxes, alimony, etc.) divided by 60

§  allowed expenses permitted by the IRS (defined in its financial analysis standards)

§  health insurance or health savings account payments

§  charitable donations (up to 15% of your income)

§  5% allowance for food and clothing (this will require court approval)

§  any costs incurred monthly while caring for a dependent (such as a disabled family member)

§  up to $1,500 annually for school expenses for a child under 18

§  utility costs

If your remaining income is below $100, you will have passed the means test and may be allowed to file for Chapter 7 bankruptcy in Utah.

For additional questions about Chapter 7 and the means test, speak with a Salt Lake City bankruptcy lawyer.  Contact the Stone Law Firm now!

Are you planning to file for Chapter 7 or Chapter 13? If so, you should not borrow money against your home to pay off your debt or consolidate debt.  In the past, people thought this was a good idea, but it is not.

In 1999, the Homestead laws in Utah were amended and are now more or less in the favor of people who are in debt.  When people file for consumer bankruptcy in Utah and they own homes, the present exemption is $20,000 for a primary residence owned by an individual.  For couples, the exemption is $40,000. 

For this reason, it is more advantageous for homeowners to resolve their debt by filing for Chapter 13 or Chapter 7 in the state of Utah.  They can then claim their homes as exempt from bankruptcy and their equity in their homes may remain intact instead of being lost.  Also, by filing for bankruptcy instead of borrowing money against homes, people will avoid accruing additional debt.

If you have questions about your home and what will happen when you file for consumer bankruptcy, contact the Stone Law Firm and take a moment to talk with a Salt Lake City bankruptcy attorney. 

Deciding to file for Utah bankruptcy is a huge decision that can impact a person's life for many reasons to come.  Before you move forward with filing for consumer bankruptcy, answer these three questions:

1)  Do you see your situation improving anytime soon?  If you answered "no", bankruptcy may be the right choice for you.  However, if you think your financial situation may improve for the better in upcoming days, weeks or months, you may want to look into bankruptcy alternatives.

2)  Are your debts secured or unsecured?  Remember, when you file for bankruptcy, not all of your debts are dischargeable.  Bankruptcy only allows for the discharged of unsecured debts, like credit card bills.  You will still be responsible for any debt that is considered secured, like your student loans.

3)  Do you fully understand bankruptcy and what you will be getting yourself into?  Before any person files for bankruptcy, it is imperative that they understand how it will impact their finances, credit and life in general.  If you need to learn more, it is advised that you consult with a Salt Lake City bankruptcy lawyer.

Are you ready to file for bankruptcy?  Contact the Stone Law Firm today to get the legal help you deserve!