Put The Blues Behind You With Chapter 7 Bankruptcy

The pressure of being buried in debt is one of the most stressful situations a person can experience. When you are making less every month than the bills and debts that are coming in, and the interest rates have your debts growing every month, the situation can seem hopeless. If you are in this situation, you need help.

At BDJ Express Law, we help clients just like you obtain debt relief through Chapter 7 debt relief. We serve clients in Ogden, Salt Lake City and the surrounding areas in Utah. At our firm, you will find an attorney who will walk you through every step of the bankruptcy process and help you get a fresh financial start.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to give you a fresh start. During the process, you will make a list of everything you own, and another list of everyone you owe. If you own anything valuable, the court checks to see whether that property is exempt (meaning the court can’t touch it). If it is not exempt, then the court can sell it and give the money to your creditors. In exchange, the court discharges or forgives all of your dischargeable debts completely.

What property can I keep?

In Utah, items that qualify as exempt include most of your ordinary household furnishings; all of your clothing; your ordinary personal items, one motor vehicle or equity in one motor vehicle with a maximum value of $3,000, up to $42,700 per spouse equity in your residential home; and many other items. Nearly all Chapter 7 debtors receive a discharge without losing any property at all.

How much does it cost?

Most cases are around $1000 in attorney fees, and the court fee is $338. There is also a $50 per-person charge for credit reports. High income and self-employment cases are a little more. We offer flexibility in payments if you are not able to pay the full amount. In the meantime, we can stop some of the phone calls and harassment, but the case cannot be filed until the fees are paid in full.

What debts go away?

All of them, except recent back taxes, student loans, debts incurred by fraud, and debts incurred in a divorce decree, child support and alimony. There are a few other categories, but they only apply to very few individuals.

Do I have to go to court?

Every debtor in bankruptcy must appear at a meeting of creditors, which is a short, five- to 10-minute meeting where you testify under oath that you listed all of your debts and all of your property. Very few cases ever go to court beyond that meeting.

What about tax refunds?

If you receive a tax refund during a Chapter 7 bankruptcy, or if you are entitled to receive a tax refund at the time you file your bankruptcy, there is a chance the court may allocate the money. You should talk to our legal team regarding the sensitivity of timing if you need to use your tax refund proceeds.

What about bank accounts, cash and retirement accounts?

Due to the fact that bank accounts are not exempt, make sure you time the filing of your case between paychecks so that you don’t have a lot of money because none of the cash or bank accounts you have are exempt. 401(k) accounts are fully exempt. IRA accounts are exempt except for contributions made during the 12 months prior to filing your bankruptcy case.