Recent Posts in Bankruptcy Category

This Wednesday, it is reported that Visteon Corp. asked a federal bankruptcy court for approval of a $700 million bankruptcy exit financing plan.  If the plan is approved by the US bankruptcy court in Delaware, Visteon Corp. has plans to exit bankruptcy around the end of September or early October.

In court filings, it has been shown that Visteon Corp. is working with Morgan Stanley as the lead arranger for the deal which involves a $500 million senior secured loan term as well as a $200 million senior secured asset base revolving account.

This week, a confirmation hearing will be held to approve or deny the plan.  Visteon Corp. said that shareholders and creditors approve the plan, which would allow the company to exit bankruptcy after a period of 16 months.  Visteon Corp. is the former parts unit of Ford and spun away from the automaker in 2000 and filed for Chapter 11 bankruptcy just last year.

If you are planning to file for bankruptcy and will likely go representation you can, 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, there are great benefits, but there are also several consequences. For example, when people file for consumer bankruptcy it will appear on their credit reports for a period of 7 to 10 years. During that time, it is very important that people:

Take the time to examine their credit reports to ensure the bankruptcy is reflected as it should be.   Any debt that is part of the bankruptcy should be properly noted usually with a "BK" notation so that creditors know that the debt has been taking care of.

Create a feasible budget and then stick to it. This is the time when people want to start rebuilding their credit and one of the key components in building better credit is having a budget in place and avoiding spending more funds than necessary.

Pay bills on time all the time. This is one of the most important things that people can do as they try to rebuild their credit and move past their bankruptcy filing.

If you are filing for bankruptcy in Utah, contact us now to discuss your options with a Salt Lake City bankruptcy attorney.

This Monday, court documents revealed that days after filing for Chapter 7 bankruptcy last year, star of The Real Housewives of New Jersey Teresa Giudice spent $60,000 on high-end furniture.

At this time, Giudice and her husband Joe are in debt of $10.8 million.  Recently, they appeared in U.S. Bankruptcy Court to discuss the August 22nd auction of their personal belongings. However, the auction was delayed until October so every item's value could be re-evaluated.

Many people are shocked to learn that shortly after filing for bankruptcy, Giudice went on a huge shopping spree. She bought $45,000 worth of blogging, Mears, tables and chairs from high-end stores.

After court proceedings, Teresa refused to comment. 

While appearing on The View this month, Giudice she never lived beyond her means and only spent money that she thought she had.  She said that her husband never told her about their massive debt because he didn't want to worry her.

Planning to file for bankruptcy in Utah? Contact us to set up a consultation with the Salt Lake City bankruptcy lawyer.

This week news sources reported that bankruptcy filings throughout the nation have reached their highest level in five years between the months of April and June. At this time period, bankruptcy filings increased by 11% compared to the same time frame in 2009. Government data was released this Wednesday showing the elevation in bankruptcy filings.

This year, there were 422,061 bankruptcy filings between January and March. Last year, there were 388,148 bankruptcy filings.

Government data showed that filings exceeded 400,000 for the first time since a record of 667,431 filings reported in the fourth quarter of 2005.

The fiscal year ended June 30^th and it was reported bankruptcy is jumped by 21% from 2009.

If you need assistance with filing for bankruptcy in Utah, contact the Stone Law Firm and discuss your situation with a Salt Lake City bankruptcy attorney.

After filing for Chapter 7 or Chapter 13 bankruptcy, people will have to take additional measures to rebuild their credit scores.  Once people have filed for bankruptcy, it will appear on their credit reports for 7 to 10 years.  Once that time has passed, the bankruptcy is removed from the report and people have a clean slate. 

While people must wait 7 to 10 years for their bankruptcies to be removed from their reports, there are a few things they can due in the interim to rebuild their credit, such as:

• applying for new lines of credit and then acting responsibly by paying bills on time and keeping balances as low as possible.
• applying for installment loans, whether home loans or car loans, and then keeping accounts current.
• maintaining employment and making steady income, which can be used to pay debt and keep credit card and loan payments current.

If you are about to file for bankruptcy in Utah, contact the Stone Law Firm and explore your options with a Salt Lake City bankruptcy attorney!

One week after filing for Chapter 11 bankruptcy, Mexicana Airlines said that it would cut some of its flights, primarily international flights from Mexico City.  The airline is trying to cut costs as much as possible, which explains the reduction in services.

Mexicana, Mexico is the biggest airline by passenger count.  This week, it cut or suspended 20 flights.  Last week, the airline suspended its daily flights from Los Angeles International Airport (LAX) and several flights from Oakland, San Francisco and Sacramento.

Reports indicate that Mexicana has been the busiest foreign-based airline at LAX for numerous years.  On August 2^nd, Mexicana's parent company, Nuevo Grupo Aeronautico, filed for bankruptcy.  It said the filing stemmed from high labor costs and large amounts of debt.

If you are filing for Chapter 11 bankruptcy in Utah, get the legal help you need by contacting the Stone Law Firm and consulting with a Salt Lake City bankruptcy lawyer.

Many people who choose to file for Utah bankruptcy believe that when they complete the process, all of their debt will be eliminated.  However, only unsecured debt is discharged after people have successfully filed for Chapter 7. 

Unsecured debt does NOT include:

§  child support payments

§  alimony payments

§  settlements or judgments

§  student loans

§  tax debt

Most people wonder why student loans are exempt from discharge.  In June 2007, U.S. Senator Dick Durbin introduced a new Bill that would make private student loans dischargeable under bankruptcy as these loans were in 2005.  Back in 2005, changes to the U.S. Bankruptcy Code made private student loans equivalent to the treatment of government-guaranteed loans, which are not dischargeable.  The Bill would reverse the 2005 amendment and allow for the discharge of any student loans that are considered private.

Have questions about Utah bankruptcy?  If so, contact us to discuss your concerns with a Salt Lake City bankruptcy lawyer.

This week, it was announced that the number of consumer bankruptcies filed in the state of Utah has increased by 31% compared to 2009.  In the first six months of 2010, 8,942 people in Utah filed for Chapter 7 and Chapter 13 combined.  During the same period last year, that number was much less.

Experts who have been monitoring the numbers say that the ongoing housing slump, unemployment rate and consumer debt/over spending are to blame.  They also believe that some people may rush into filing for Chapter 7 and Chapter 13 bankruptcy instead of considering their alternatives.

An employee with AAA Fair Credit Counseling, Preston Cochrane, said, "bankruptcy is not always what people think it is, it's not an easy way out."  He also said that often times, filing for bankruptcy is an emotional decision.

If you are considering filing for bankruptcy in Utah and you would like to learn if this is your best option, now is the time to consult with a Salt Lake City bankruptcy attorney who can advise you.  Contact the Stone Law Firm now!

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!

According to 11 U.S.C. 362, when a person files a bankruptcy case under any chapter of the Bankruptcy Code, it will trigger an injunction (stay) against the person's creditors.  This means that the creditors will not be allowed to continue any action against the person in debt or the person's property.

Essentially, once the automatic stay is in place, a certain amount of protection is extended to the person that is in debt.  Additionally, all of the debtor's assets and creditors have a chance to get on the same page so issues can be resolved by the bankruptcy court.

After an automatic stay has been issued in a bankruptcy case, whether chapter 7 or chapter 13, creditors will not be allowed to:

§  begin or continue lawsuits

§  make collection calls

§  conduct repossessions

§  commence foreclosure proceedings

§  garnish wages or issue levies

Automatic stays remain in effect until:  a judge lifts the stay per a creditor's request, the debtor's debts are discharged or the item of property is no longer property of the estate.

If you have additional questions about bankruptcy or automatic stays, contact the Stone Law Firm and schedule a consultation with a Salt Lake City bankruptcy attorney.

In Utah, it is reported that former House Majority Leader Kevin Garn was listed as a creditor in an individual's bankruptcy petition.  The woman filing for chapter 7 asserts that she was paid by Garn to keep silent about a nude hot-tubbing incident that occurred twenty years ago.  At the time of the incident, the woman was 15 years old.

In court documents filed last week Friday, Cheryl Ann Maher stated that she owed Garn $153,300 because she defaulted on a contract that was established in 2002.   She had listed Garn as a creditor as a precaution to prevent the former Utah House Majority Leader from demanding the repayment of "hush money" that stemmed from the hot tub incident in 1985.

In a phone interview, Maher said, "I filed ... because I don't have the money to repay him."  Even though Garn has not asked for repayment, she said that she is covering herself.  According to Maher, Garn agreed to pay her a lump sum o $150,000 in 2002 and $3,300 between the years of 1986 and 2002.   At first, Maher said Garn offered her $20,000, but her sister and ex husband persuaded the politician to pay her more.

When asked about the "hush money" incident and if he would challenge the $153,000 as a debt, Garn allegedly launched a profanity laced tirade. 

If you are planning to file for bankruptcy in Salt Lake City, know that the Stone Law Firm is here to help you.  Contact us to speak with a Salt Lake City bankruptcy attorney today!

When people are about to file for consumer bankruptcy, they have many concerns.  Often times, these concerns can be addressed and dealt with when people meet with a Salt Lake City bankruptcy lawyer.  Below, the Stone Law Firm lists common concerns people have when they are about to file for chapter 7 or chapter 13:

§  Not getting credit in the future.  While people may not be able to get new lines of credit immediately after filing for bankruptcy, they can obtain credit cards in the future if they act responsibly.  More and more lenders are allowing people who have filed for bankruptcy to obtain credit.

§  Losing homes.   Anytime people are afraid that they will lose their homes or other valuable possessions, they should consult with a bankruptcy lawyer.  In some cases, people are able to keep their homes after filing for consumer bankruptcy.  Of course, this varies case-to-case.

§  Embarrassment.  When people need to file for bankruptcy, they can feel ashamed or embarrassed.  However, the reality is that many people throughout the country have had to file for bankruptcy because they could not contend with financial hardships.  For this reason, people should never feel embarrassed.

If you would like to discuss your bankruptcy concerns, do not hesitate to contact the bankruptcy attorneys at the Stone Law Firm.

Many people wonder what happens during credit counseling and have questions about the credit counseling process.  In this post, we aim to provide people with the information they need to understand credit counseling before they file for Utah bankruptcy.

As mentioned in our prior post, "Credit Counseling Pre-requisite to Bankruptcy", people must fulfill the credit counseling requirement 180 days prior to filing for consumer bankruptcy.  When people go through credit counseling, they will meet one-on-one with a specialist or professional that is approved of by the U.S. Trustee Office.  Usually, the meeting will last for 60 to 90 minutes and will cost around $50.

People who go through credit counseling will have their personal finances evaluated and receive additional information related to the bankruptcy process.  After people have completed credit counseling, they will receive a certificate of completion which is automatically generated by the U.S. Trustee Office. 

If you have questions about credit counseling or bankruptcy, now is the time to contact the Stone Law Firm and speak with a Salt Lake City bankruptcy lawyer.

In the United States, people who are planning to file for consumer bankruptcy need to complete credit counseling.  This holds true whether they are filing for chapter 7 or chapter 13 bankruptcy. 

In 2005, the laws surrounding bankruptcy in the United States changed a great deal.   At that time, credit counseling became a mandatory pre-requisite.  According to the laws that were introduced, people who planned to file for bankruptcy must complete credit counseling 180 days before submitting their bankruptcy petitions.   Additionally, after bankruptcy paperwork is completed and submitted to the U.S. Bankruptcy Court, individuals must go through a debtor education program. 

Unfortunately, if people do not meet these requirements, they will not be eligible for consumer bankruptcy.  Therefore, it is extremely important that people fulfill these requirements so they can expedite the bankruptcy process. 

At the Stone Law Firm, we know that people can become confused by the steps they must take when filing for chapter 7 or chapter 13.  For this reason, we encourage people to contact our law office and meet with a Salt Lake City bankruptcy attorney from our firm.

Be sure to read our post "Credit Counseling Explained" to learn more.

If you watch the Real Housewives f New Jersey, you know who Teresa Giudice is and that she likes to lead an extravagant life.  However, this week, multiple news sources revealed that the housewife and her husband Joe filed for chapter 7 bankruptcy.  Throughout the first season of the show, Teresa would regularly spend over $2,000 on clothes for her daughter and furnished a $1.7 million home.

In October, it is reported that Joe filed a chapter 7 petition.  Now, Teresa is addressing the bankruptcy.  In an interview with People Magazine, she said that it is a personal matter.  She also said that she realizes her private live will always be subjected to "scrutiny and distortion".  She is, after all, a reality TV star.  Teresa commented that bankruptcy will serve as a "fresh start".

If you are thinking about filing for chapter 7 bankruptcy in Salt Lake City, contact the Stone Law Firm.   A Salt Lake City bankruptcy lawyer from our team would welcome the opportunity to speak with you.

One common issue that people have to deal with when they have credit card debt is creditor harassment.  While not all people will be harassed by their creditors or collection agencies when they owe money, many people are and need immediate help.  One of the best ways to put an end to creditor harassment, especially when you are on the verge of filing for chapter 7 or chapter 13, is to consult with a bankruptcy attorney. 

You should seek help whenever:

-          A creditor keeps calling persistently, even when asked to stop.

-          A creditor continually calls you at your place of employment.

-          A creditor issues threats or abusive language.

-          A creditor calls you names or issues verbal insults.

-          A creditor tries to call one of your family members or friends to discuss your debt.

-          A creditor creates false legal documents to get you to pay your debt.

If you are thinking about filing for bankruptcy in Salt Lake City and are dealing with creditor harassment, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

Welcome to Part Two of Having a Life After Bankruptcy.  If you missed, be sure to check out Having a Life After Bankruptcy Part One.  After you have filed for bankruptcy, here are more rules to follow:

Number Four:  try to maintain continual employment.  This means keeping a steady job so that you have reliable income each month.

Number Five:  take control of your debt by meeting with a financial planner.  Speaking with a financial professional will provide you with strategies to repay your debt and also help you create a do-able budget.

Number Six:  review your credit report.  Sometimes, you will find that information is incorrect and when this happens, you should also file a dispute with the credit bureau.  False information can adversely impact your credit rating, which is something you must avoid after filing for bankruptcy.

By following these basic rules, you will regain control of your finances and life in no time.

If you are thinking about filing for bankruptcy in Salt Lake City, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

One of the many things that people do not fully understand before they file for Chapter 7 or Chapter 13 is that there really is life after bankruptcy.  In fact, Utah bankruptcy can present people with numerous advantages while giving them a chance to start over with a clean slate.  The key to having a life after bankruptcy is following a few basic rules:

Number One:  pay your bills on time, every month, without fail.  Doing this will help you rebuild your credit rating.

Number Two:  try to live within your means.  This means that you will have to make a firm commitment to avoid overspending and making purchases that constrain your finances.

Number Three:  make a tailored budget that is feasible and stick to it.  It will serve as your financial plan on a month-to-month basis, help you stay on track with your bills, reduce debt and regain financial control.

Be sure to read our next entry, Having a Life After Bankruptcy Part Two to learn more.  If you are thinking about filing for bankruptcy in Salt Lake City, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

If you are thinking about filing for bankruptcy in Salt Lake City, Utah, it is important that you know that not all of your debts will be discharged.  Generally, if you file for Chapter 7, you cannot eliminate the following:

1.  Debts that are owed to federal, state or local government agencies

2.  Debts that were not on your initial list of debts when you filed your bankruptcy paperwork

3.  Debts that are owed for child support or alimony

4.  Debts that are owed as part of a legal judgment

5.  Debts owed on student loans (these debts may be deferred due to financial hardship, but cannot be eliminated)

6.  Debts accumulated after bankruptcy

Filing for consumer bankruptcy in Utah?  If so, now is the time to schedule an initial consultation with a Salt Lake City bankruptcy lawyer from the Stone Law Firm.  When you contact us, we will arrange to meet with you one-on-one so that we can answer your questions and tell you more about the bankruptcy process in Utah.

When people are about to file for bankruptcy, they will have to decide between Chapter 7 and Chapter 13.   Generally speaking, those who file for Chapter 7 bankruptcy have their debts discharged and those who successfully file for Chapter 13 are responsible for repaying their debt.

People who are trying to decide between Chapter 7 and Chapter 13 will need to consider a few things before making their decisions.  First, they need to know which bills can be eliminated if they file for Chapter 7.  Second, they need to know which possessions they will be able to keep when they file for Chapter 7 or Chapter 13.  Finally, they will need to become informed of their rights and options under each type of bankruptcy.

The type of bankruptcy people file for will largely depend upon their financial circumstances and their ability to repay their debt over a set period of time.  Therefore, when people are on the verge of filing for bankruptcy in Utah, they should consult with a knowledgeable Salt Lake City bankruptcy lawyer at the Stone Law Firm.  Contact us today to get reliable answers to your bankruptcy questions.

With more and more people having to file for consumer bankruptcy in the state of Utah, it is important that people understand the differences between Chapter 7 and Chapter 13.  Below, the Stone Law Firm explains the three factors that make each type of bankruptcy different:

1.  When people choose to file for Chapter 7 and they are successful, their debts are discharged or eliminated.  However, when people file for Chapter 13, they agree to repay the debts they owe to their creditors over the time span of 3 to 5 years.

2.  People who file for Chapter 7 may lose their property through the process of liquidation.  People can lose their homes, cars, land and other valuable assets which will be sold for a profit to reconcile their debt.  People who file for Chapter 13 do not have to go through the liquidation process.

3.  In order to qualify for Chapter 7, people must take a means test and they must show that they do not make more than the state's median income.  If they make more that the state's median income, they will have to try to file for Chapter 13 because. 

To learn more about the differences between the two types of consumer bankruptcy, contact the Stone Law Firm now to speak with a Salt Lake City bankruptcy attorney.

In Salt Lake City, Utah, it has been announced that a mining company has shut down and will be filing for bankruptcy protection.  The company, Copper King Mining Corp., operates in Utah's west desert and has let go of many of its employees.

According to the company, it hopes to emerge from its Chapter 11 bankruptcy much stronger.  The company plans to reorganize, pay off its debts and raise profits. Copper King Mining Corp. encountered problems when it could not honor its contracts to supply customers, which led to the company considering bankruptcy.

In its bankruptcy filing, which was filed on Tuesday at the U.S. Bankruptcy Court for Nevada, the company said it could no longer pay for mining leases, workers, operations or even its legal team.  The company said that due to its lacking finances, it even had its power shut off.

Are you thinking about filing for bankruptcy in Salt Lake City?  If so, contact the Stone Law Firm to consult with a Salt Lake City bankruptcy lawyer today!

If you are planning to file for Chapter 13 bankruptcy, you will need to have a full understanding of what Chapter 13 is, what it does and how it may benefit you. 

Unlike people who file for Chapter 7 bankruptcy, people who decide to pursue Chapter 13 usually have the monetary means to repay the debt they owe to their creditors.  They simply need time to repay their debt in full and need to come up with a feasible repayment plan. 

When people decide to file for Chapter 13, they will be responsible for repaying their creditors over the time span of 3 - 5 years.  However, while they have to repay their debts, they do not have to go through the liquidation process like those who file for Chapter 7.  For this reason, Chapter 13 can be very advantageous to those who are struggling with their bills, but wish to remain in possession of their homes, cars and other valuable assets.

To learn more about Chapter 13, you should speak with a Salt Lake City bankruptcy attorney from the Stone Law Firm.  You can set up an initial bankruptcy consultation when you contact us.

Chapter 7 is a type of bankruptcy that is filed for by consumers that are waist-deep in debt.  Commonly referred to as "liquidation bankruptcy", Chapter 7 is an ideal option for people who are struggling to pay their bills and who have little income to repay the debt they owe to their various creditors.

When people enter into the Chapter 7 bankruptcy process, they may be subjected to a process known as liquidation.  During liquidation, assets that people own such as homes, cars and other types of property are sold for a profit, which is then turned over to people's creditors.  It is important to note that not all people who file for Chapter 7 in Salt Lake City will have to go through the liquidation process.

 After individuals have successfully completed the Chapter 7 process, all of their debts will be discharged and they will be able to start over with a clean slate.  This is the biggest benefit of filing for Chapter 7 versus Chapter 13.

Are you planning to file for Chapter 7 bankruptcy in Utah?  If so, it is a wise idea to speak with a Salt Lake City bankruptcy lawyer from our law office. 

Contact Stone Law Firm today to discuss your bankruptcy proceedings!

With unemployment at its highest and the job market being increasingly tight, more people are being forced into bankruptcy. Many who found themselves laid off and afterwards found work are getting paid less and receiving less benefits, while others have taken on temporary contracts without any benefits at all just to keep up with basic expenses.

Some folks are going back to school to learn new skills, but education often comes with debt attached. Credit has to be used more often to get by and debt keeps increasing.  Elimating debt is getting more attractive as time goes by. Families all around the nation have had to either walk away from their homes or have been evicted due to foreclosures. Experts predict that the jobless rate will remain high for some time, and with tax increases looming around the corner as well, for some, bankruptcy is a way to gain a fresh start and is the most workable option.

Because there are different types of bankruptcy, one should consult with an attorney who is familiar with the bankruptcy laws and can provide you with advice and guidance based on your specific circumstances.

If you are feeling the stress of financial overwhelm, contact a Salt Lake City bankruptcy attorney at our firm to see what your options are. The Stone Law firm has extensive experience in these matters and can provide you with much needed debt relief options. Contact the office today  at 800-769-0074 to set up a consultation.

With an economic recession in full force and people losing jobs at an ever increasing rate, the following information should come as no surprise. The Administrative Office of the U.S. Courts shows that the total number of bankruptcies filed in the U.S. for 2009 has increased by 34.5 % over the same period in 2008. Additionally, a new Harvard study published in The American Journal of Medicine (August 2009 issue) stated that financial difficulties started hitting Americans “before” the economic downturn, and the main cause was determined to be illness and medical bills.

A first-time national random sample survey was done on people who filed for bankruptcy. The survey was conducted by Harvard Law School and Ohio State University . Results showed that in 2007, 60% of all bankruptcies in the U.S. were caused by illness and related medical bills.

Many people lose their health insurance when fired from their job, or they lose their coverage when they become ill and experience trouble paying all of their medical bills.

Struggling to Pay Off Your Debt?

If you are experiencing financial distress and feel like you might never get your head above water again, you should contact a Salt Lake City bankruptcy attorney at our office to get some helpful advice on what you can do to regain some peace of mind. Being in debt is stressful and in itself can bring about illness. Eliminating debt is like eliminating an unwanted medical condition, you feel healthier and more alive when rid of it. 

Contact the Stone Law Firm today at 800-769-0074 to learn more about our bankruptcy services.