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!

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.

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.

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.

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.

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.