Obtain Bankruptcy Relief Without Losing Your Property
Most people associate bankruptcy with complete liquidation. They think that losing all of your property is an automatic built-in part of the bankruptcy process. However, this is far from true in most cases, especially in Chapter 13 bankruptcy proceedings.
At BDJ Express Law, we serve clients in Ogden and throughout the Salt Lake City area of Utah. We bring 26 years of experience and knowledge to the benefit of our clients, and we share a strong commitment to providing exceptional legal care for every client we serve. Talk with us about how to get through the process of obtaining bankruptcy relief without losing all of your assets.
Chapter 13 Bankruptcy Basics And Questions
Chapter 13 bankruptcy is designed to allow you to keep all of your property and to consolidate some portion of your debt into one payment you can afford. It allows you to cure delinquent mortgage payments over time while you keep your home. In many cases, Chapter 13 allows you to “cram down” secured obligations like car loans and furniture accounts, meaning that you would only have to pay the value of the property you financed, instead of the entire loan.
Chapter 13 also allows you to pay back taxes and child support in reasonable monthly payments while stopping garnishments and levies. Chapter 13 basically allows you to pay what you can afford to pay while discharging what you cannot afford to pay. This is accomplished through a monthly payment plan that consolidates all of your debt (except ongoing mortgage payments) into one payment.
What about tax refunds?
In Utah, every household gets to keep the first $1,000.00 of their combined State and Federal refunds each year of their bankruptcy. Households that receive Earned Income Credit and/or Additional Child Tax Credit are allowed to keep some or all of those credits. Most Chapter 13 debtors adjust their withholding so that they get their pay in their checks, instead of in big refunds at the end of the year.
Can it stop foreclosure?
Yes! Even up to the minute of a foreclosure sale, Chapter 13 may be filed, the back mortgage payments may be put in the bankruptcy and the sale is stopped. However, your attorney must prepare paperwork, and you must pay your attorney, sign that paperwork, and complete an on-line class prior to filing your case. So, don’t wait until the last minute!
How much does it cost?
In most cases, the attorney fees are between $3,500 and $4,000. However, most of that is paid in your monthly payment plan. Upfront, you would need $150-$200 in the most desperate of cases. Average upfront is between $400-$600, including filing fee, attorney fees and credit reports.
What if a job is lost, or another emergency happens, and the payment is missed?
If you miss payments in Chapter 13, you can meet with your attorney and ask the court to forgive the payment or adjust the length of your plan. The court is flexible as long as the request is reasonable and for good cause.
Can I get a vehicle back after a repossession?
Yes, as long as the vehicle hasn’t been sold yet. If you file Chapter 13, the bank must return the vehicle, and you pay for the vehicle in your monthly payment plan.
Contact Us To Get The Help You Need
Our impressive legal team is prepared to handle whatever challenges come our way. Whether it’s your bankruptcy or family law claim, or estate planning preparations, we are able to help.
For more information on our full array of services, call BDJ Express Law at 801-394-2336 in Ogden or 801-816-1074 in the Salt Lake City area. You can also fill out our contact form to schedule your free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.