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.

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!