In Part 1 of this blog series, we explored some answers to some of the most frequently asked questions about Chapter 7 bankruptcy. Below is some additional information on this topic.
What Exemptions are Available in Utah?
Exemptions allow people who file for Chapter 7 bankruptcy to keep certain property. While some states allow you to choose between the federal bankruptcy exemptions and state specific exemptions, Utah is not one of them. As a result, you must use the exemptions provided by state law.1 Some of the exemptions available in Utah include the following:
- $30,000 in Your primary residence; or, $5,000 in real estate that is not a primary residence
- Food and other provisions for one year
- Health aides
- Disability, illness, or unemployment benefits
- Beds and bedding
- One clothes washer, dryer, freezer, stove, microwave oven, and sewing machine
As this list should make clear, most people are not left destitute after filing for Chapter 7. In fact, many people who file are able to keep all of their property and eliminate all of their debt.
Is Everyone Able to File for Chapter 7 Bankruptcy?
No. In order to be able to file for Chapter 7, you need to be able to pass the means test that was implemented by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.2 The means test is a calculation that compares your monthly income, your expenses, and your total level of debt. If you do not pass the means test, you cannot file.
Is Chapter 7 Right for Me?
Whether filing for Chapter 7 bankruptcy is right for you depends on a number of factors, including your income, your debts, and the extent and nature of your assets. It is important to keep in mind that a bankruptcy does have downsides, and you should never choose to file without carefully considering all of the alternatives. When you meet with an attorney, he or she will be able to advise you as to how filing for bankruptcy could benefit you and whether it is appropriate in your situation.
Call JLT Law Today to Schedule a Free Consultation with a Salt Lake City Bankruptcy Lawyer
If you are in debt and are having trouble keeping up with your monthly commitments, you should speak to an experienced lawyer as soon as possible. To schedule a free case evaluation with one of our lawyers, call JLT Law today at 801-797-2098 or contact us online.