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.