Recent Posts in Chapter 7 Bankruptcy Category

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.

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!

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!

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. 

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.

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.