Changes to Exemptions in a Utah Bankruptcy

Posted on April 28, 2013 by Chris Salcido

The last article we posted listed the Utah Bankruptcy Exemptions and provided information on how they apply etc. Recently, the Utah State Legislature amended a number of the exemptions and provided increases to many key exemptions. This is good news for the consumer since many bankruptcy filers will now be able to claims more value for certain items of property as exempt from the bankruptcy estate. Utah has opted out of the federal bankruptcy exemption list which is good for Utahans because they can keep more value from liquidation in a Chapter 7 Bankruptcy. The new increases to exemptions go into effect May 14, 2013. If you have been considering filing for bankruptcy but have been putting it off, well your decision to wait might prove a good one if you have exempt property now getting more bang for your buck.

New Exemptions Added

When you file for a Chapter 7 Bankruptcy in Utah, all of your property is inventoried and disclosed into exempt property and non exempt property. As described in our previous post, exempt assets are those which do not become part of the liquidation process in the bankruptcy. Or more simply stated those assets you get to retain or at least retain a portion of their value depending on the specific item. One of the big changes in the recent amendments added exemptions of firearms and ammo. That is right, Utah is a gun friendly state and our elected representative apparently want us to be able to always retain our guns even through a bankruptcy. This is a big deal to many because many individuals may collect firearms; also ammunition has been going through the roof in price in recent months.

Increase in Value to Certain Exemptions

In addition to adding guns and ammo to the exemptions list, the following items which were already on the list were upped to $1,000.00 in value: home furnishings; kitchen tables and chairs; animals, books, musical instruments, and family heirlooms. It makes sense for the state to increase the value of these items because even though the economy has declined, these property items have only seemed to increase in price.

Salt Lake Bankruptcy Attorney

Now is a good time to file for bankruptcy with the new amendments to exemptions taking effect. For more information on the amendments to Utah’s Bankruptcy Exemption List, and to learn how your particular case may be impacted, call and speak with a Salt Lake Bankruptcy Attorney at Utah Debtor Protection now.

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Exempt Property in a Utah Bankruptcy

Posted on April 14, 2013 by Chris Salcido

Property which is exempt from bankruptcy in Utah, meaning all items which are not forfeited to the United States Bankruptcy Trustee, are set forth in the Utah Exemption Act. We receive many phone calls each weeks with questions in this regard. Many people fear they will lose everything they own to the bankruptcy if they file. This is not the case. The purpose of bankruptcy is not to put you out on the street without the basic necessities of life. Although you will inevitably lose certain property in a bankruptcy, there is quite a long list of exempt property. We provide a basic list below but for details you should call and speak with a member of our team right away:

Alimony Payments
All Carpets in Use
Animals, books, Music Instruments
Bed and Bedding
Burial Plot
Child Support Payments
Dining, Kitchen Table, & Chairs
Disability, Illness, Unemployment Benefits
Family Pictures, Works of Art
Fraternal Benefit Society Benefits
Health Aids
Homestead
Homestead–Proceeds of Sale
Household Appliances
Life Insurance Proceeds
Life Insurance Proceeds
Medical, Surgical, Hospital Benefits
Military Property of Nat’l Guardsman
Motor Vehicle
Pension, Annuity Etc Benefits
Personal Heirlooms
Proceeds of Damaged Exempt Property
Proceeds of Injury Claims
Provisions (12 month supply)
Real Property, not primary residence
Retirement Account Benefits–State
Retirement Plan Benefits
Sofas, Chairs, & Related Furnishings
Specific Partnership Property
Tools of Trade–Books, Equipment
Unemployment Compensation Benefits
Veteran’s Benefits
Water Rights & Interests
Wearing Apparel
Workman’s Compensation Benefits
Wrongful Death, Injury Proceeds
75% of unpaid wages

Consulting With A Salt Lake Bankruptcy Attorney

The list provided may not include the specific details about how much value a certain category is exempt. Therefore, it is important to consult with a Salt Lake Bankruptcy Attorney before taking any action specific to your case. We offer free consultations by phone and can usually tell you right away what you should expect from an exemption or what your options may be. Contact us today for a detailed game plan specific to you and your family.

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Cancelled Debts and Taxable Income

Posted on April 7, 2013 by Chris Salcido

It is that time of year again, tax time. Taxes are due in just a few days which means many people have either done their taxes already, or filing last minute, or may be procrastinating it all together. Many people had debts forgiven in 2012 and as a result, such forgiven debts might be included as income resulting in a potentially higher tax payment. Do not worry however; debts discharged in bankruptcy are not counted as taxable income. We receive many phone calls each year from prior clients wondering if any of their debts forgiven in bankruptcy will be treated as income and will increase their potential tax liability. Beyond debts discharged in bankruptcy, other common types of forgiven debt which are not treated as taxable income under the tax code may include debts cancelled when you are insolvent, a debt cancelled as a result of foreclosure, a some types of student loan debts. There may be other cancelled debts which are exempt but you should consult you tax professional for more information.

Creditors Obligations and Cancelled Debt

Creditors are required to file certain tax forms for any debt they forgive of $600.00 or more. However, you may not receive such a form as the debtor and may not even know that a certain debt is forgiven. Therefore, if you have any questions about cancelled debt, you should consult with a tax advisor and track down all the information you can from known creditors. The last thing you want is the IRS coming after you because you failed to report cancelled debt you didn’t even know about.

Salt Lake City Bankruptcy Attorney

Because you will not receive a tax penalty related to cancelled debts discharged in a bankruptcy, you can file bankruptcy knowing you are not increasing your potential tax obligation at the end of the year. For more information, call and speak with a Salt Lake City Bankruptcy Attorney at your convenience. We look forward to your call, 801.618.1332.

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Cyprus Woes Renew Concern over European Financial Strength

Posted on March 29, 2013 by Todd Peterson

This week the big news in Cyprus is over a deal championed by the European Union to try and help Cyprus avoid financial collapse. Like a lot of banks across Europe the banks in Cyprus have hit tough times as they realize losses on government bonds and the like. However, the difference in Cyprus is the Cypriot government is not big enough to bail out the banks, as has been the remedy in a number of other European Countries. In fact the country’s banking sector is seven times the size of its government, so Cyprus had to call for the rest of the European Union to step in and help.

What Cyprus Means to Investors

The bigger question for the rest of the world is what does the Cyprus financial problems and recovery plan mean for the financial stability of the region. Depositors and Investors are trying to learn from the Cyprus downfall and are staying away from countries where, like Cyprus, the banking sectors are too big. While some question whether or not Europe is really financial stable or not the concern over failing banks and government bailouts may become self fulfilling prophecy as investors stay away from the perceived risks.

What This All Means for You | Utah Bankruptcy Attorney

While this news may concern some in Utah the reality is it probably what directly affect us at all. The take away from a story like this for Utah creditors and debtors is that financial instability is still very real and we need to continue to strive to be careful with our money and make sure we are financial stable ourselves. For some this may not be a possibility as past debts and current employment issues make it nearly impossible to live much less save. If you are having financial difficulties and think you may need to start fresh and file for bankruptcy then call Utah Debtor Protection today to find out more about what your options are.

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Repairing Your Credit After Filing for Bankruptcy

Posted on March 18, 2013 by Chris Salcido

Yes, it is possible to repair your credit following a bankruptcy. The single most important factor in helping repair your credit is time. Generally speaking, a Chapter 7 Bankruptcy Filing may continue to show on your credit report for 5 – 10 years depending on the circumstances. Time is your friend when it comes to credit. With that being said, you can start taking immediate action following a bankruptcy to help repair and build your credit. Now, before we provide the steps below, we write this with a word of caution because borrowing and using credit may be what actually got you into trouble in the first place and ultimately may have led to your bankruptcy. So, before you go out and start getting credit following you case, you should pause and really decide what the most effective and reasonable manner would be and only borrow for necessities in amounts you know you can afford.

Vehicle Loans

It might be possible to get a loan on a vehicle shortly following a bankruptcy. Even with a bad credit score there are many auto centers who will loan. A vehicle loan may be a good way to started rebuilding your credit so long as your loan is in an amount you can absolutely afford. A vehicle is a necessity for most people. So if you purchase an affordable reliable vehicle you should get your money’s worth, and not have to worry. You should take caution, however, that loans to individuals with bad credit often include very harsh payment options and high interest rates.

Savings

Building your bank accounts can help after bankruptcy. If your debt to income ratio is low and you have savings in the bank, your credit and ability to get loans shortly after bankruptcy may be improved. After a bankruptcy you should be thinking more about saving and less about borrowing.

Credit Repair Companies

There are many scams out there in this area so be careful. If you are thinking about hiring a credit repair company after bankruptcy you should do your due diligence into the services offered and the company before making any decisions. It is very unlikely that credit repair companies can have much of a benefit on you lack of credit following a bankruptcy so be extra careful.

Free Consultations for Bankruptcy

At Utah Debtor Protection, our team of skilled Utah Bankruptcy Attorneys can help you get through the bankruptcy process in Utah and on your way to rebuilding your credit. Contact us anytime; we look forward to representing you.

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Filing For Bankruptcy With or Without Your Spouse

Posted on March 11, 2013 by Chris Salcido

Often, Clients contact our office wanting to file for bankruptcy but do not want their spouse to be affected. Many people want to know if it is possible for them to file for bankruptcy without their spouse. The answer is yes, you can file for bankruptcy without your spouse potentially saving your better half’s credit score etc. While for the most part bankruptcy can be filed by only one spouse without having a great effect on the other, there are certain circumstances which the couple need to be aware of before jumping in without the other. Here are a few of the major considerations for a couple if one spouse is going to file without the other:

Family Financial Information

In most cases, the total financial information for the family will be required for the bankruptcy petition. This means that the other spouse’s financial information may be needed in the disclosures even though him/her is not a party to the action. This doesn’t mean that the non filing spouse will be negatively affected or affected at all. It simply means that the court requires the total financial picture for the filing spouse. The debts and credit of the non filing spouse should not be impacted.

Advantages to One Spouse Filing

There are several advantages to only 1 spouse filing for bankruptcy. The most obvious is probably the fact that the other spouse will not be affected. That is to say the other spouse’s credit will remain unchanged. If the non filing spouse has a great credit score, it can be very advantageous to the family because future necessary loans may likely be obtained through that spouse. Another advantage deals with the marital assets. Filing solely as opposed to jointly can make a difference in what property is maintained by the family.

Disadvantages to Sole Filing

One of the most substantial downsides to filing for bankruptcy by yourself, without your spouse, is related to joint marital debts. If you have joint debts, those debts may not be entirely discharged. The other spouse may be held entirely liable for the joint debt in many cases. This means many debts may not be discharged and the overall financial picture for the family may not be changed much.

Free Consultations

To find out more information about whether or not it makes sense for you to file on you own or with your spouse, call and speak with a Salt Lake City Bankruptcy Attorney at Utah Debtor Protection now. We provide free consultations and can usually give you a great idea of what to expect with your case right over the phone.

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Utah Bankruptcy Statistics

Posted on February 23, 2013 by Jerry Salcido

Per Capita Bankruptcies

Utah has historically been a state with a high number of bankruptcy filings per capita.  County by county bankruptcy filings per 1,000 residents are as follows:

Beaver – 4.31
Box Elder – 5.77
Cache – 3.67
Carbon – 8.15
Daggett – 5.31
Davis – 6.25
Duchesne – 5.4
Emery – 4.99
Garfield – 2.16
Grand – 5.07
Iron – 6.65
Juab – 3.9
Kane – 2.88
Millard – 3.42
Morgan – 3.37
Piute – 0.7
Rich – 6.48
Salt Lake – 7.2
San Juan – 0.93
Sanpete – 3.66
Sevier – 4.05
Summit – 3.79
Tooele – 8.28
Uintah – 5.35
Utah – 5.57
Wasatch – 6.67
Washington – 8.05
Wayne – 1.92
Weber – 7.16

The above number are from 2010 and come from statistics provided by the United States Courts.  This puts Utah at about number 14 our of the 50 states in terms of highest bankruptcy numbers per capita.  Hawaii and Alaska have the fewest bankruptcy filings per capita.

Total Bankruptcy Numbers in Utah for 2011 and 2012

In 2012 there were a total of 15,888 nonbusiness bankruptcy filings in Utah.  Of those 10,698 were Chapter 7 bankruptcy filings, that is, individuals who sought to discharge their debts and completely clear out their debt load.  5,181 of those were Chapter 13 filings, meaning that those individuals were required to enter into a 3-5 year repayment plan and then anything leftover after the repayment plan term could be discharged.

Overall, bankruptcy filings were down 11.7% in 2012 from 2011. The decrease in bankruptcy filings would seem to suggest that the economy is gaining strength.  At the same time one could look at the numbers and conclude that the spike in bankruptcies from 2009 to 2011 and the subsequent decrease in 2012 simply means that most of those debtors hardest hit by the crash have declared bankruptcy but that does not necessarily mean that they are now in an improved economic situation in terms of employment and income.

What is to Come?

Utah is likely to remain in the top 1/4 of states for bankruptcy filings per capita because household debt is excessive and savings continues to decline.  Until Utahs save more and spend less bankruptcies will continue steadily.

Our law firm helps individuals through the bankruptcy process.  Let us help you start fresh.

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Tax Refunds and Bankruptcy in Utah

Posted on February 13, 2013 by Chris Salcido

Its tax season again. Many lucky individuals will be receiving a tax refund. So what does this mean if you are filing for bankruptcy? What many people do not realize is that the U.S. Bankruptcy Trustee may likely take your tax refund if you file for bankruptcy and then receive a refund. In fact, here in Utah, the tax refund is the most liquidated asset in bankruptcy cases. The only way to avoid losing your refund is to file for bankruptcy after already receiving your tax refund and spending it appropriately. If you do the opposite, you can bet your tax refund is going to become the property of the United States. The best thing to do before taking any action with your taxes is to speak with a Salt Lake City Bankruptcy Lawyer at Utah Debtor Protection today.

Forfeiting Your Tax Return in Bankruptcy

Not all of our clients try to avoid the tax refund forfeiture. Believe it or not, some individuals are ok with contributing their tax return to the bankruptcy estate or want to delay filing the bankruptcy until long after their refund has come and gone. The other factor to consider is the time the case may be left open if the trustee has a refund to go after. Most Chapter 7 bankruptcies can be closed fairly quickly in a 3 month period or so. However, if there is a refund to go after, the trustee may keep the case open for much longer until the refund is captured.

Asset Advice from Utah Debtor Protection

Tax refunds are common asset grabbed by the trustee’s office in bankruptcy. However, some other assets may be taken in bankruptcy as well. Before jumping into a bankruptcy, you should at least speak with a Utah Bankruptcy Attorney at our law office. You can get a free consultation with a member of our team right over the phone. We take the time to understand your concerns, goals, and can help you get through bankruptcy while maintaining the most assets you can under the law.

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5 Major Myths About Bankruptcy

Posted on January 27, 2013 by Chris Salcido

We frequently hear many negative assumptions about bankruptcy from clients and people in the community in general which simply are not true. There are a lot of myths out there surrounding bankruptcy and we wish to dispel the 5 we hear the most that we also believe, unfortunately, prevent some from filing for bankruptcy when it is indeed the best thing for them financially. Here are the top 5 myths we believe should be busted:

Myth Number 1: I Will Lose Everything

This is probably the number one fear we hear from potential clients. Many people believe if they file for bankruptcy they lose essentially everything they own. This is absolutely not true and no one should ever let this stop them from filing for bankruptcy if it is in their best financial interest to do so. The laws of Utah allow for specific bankruptcy exemptions to allow you to keep certain assets when you file for bankruptcy. We can explain in to you the detail of what personal property items you will likely be able to keep and which ones you will have to surrender to the trustee. The law does not want you to be left out in the cold with nothing; that is not the point of bankruptcy. A large number of your assets you will likely be able to retain.

Myth Number 2: I Will Never Be Able to Get Credit Again

Not true. While bankruptcy does put a ding in your credit, chances are if you are considering filing for bankruptcy in Utah, your credit is already shot. Still, you can bet that you will likely still be able to get credit very quickly after you file for bankruptcy. You will probably still be able to get a credit card; your terms will just be unfavorable so pay attention to that. After bankruptcy you can start taking certain steps to begin building credit right away.

Myth Number 3: Only Losers File for Bankruptcy

This is absolutely not true. There have been numerous individuals, many high profile and wealthy, who have filed for bankruptcy at one point and been able to bounce back stronger than ever. Many people go through a rough patch financially as a result of a divorce, illness or injury, and joblessness. This doesn’t mean you are a dead beat. Life happens and what matters more than anything else is how you eventually respond and whether or not you take proactive measures to build you life back.

Myth Number 4: It’s Too Hard to Filed for Bankruptcy

Bankruptcy can be a daunting task it is true. However, it is not difficult to find a good qualified lawyer at a decent price. At Utah Debtor Protection we do all the work for you so you don’t have to worry about all the ins and outs of the actual filing process. We represent you every step of the way so it is extremely easy for our clients to go through bankruptcy and they have professional support.

Myth Number 5: I Can’t File Because I Already Have Once

No it is not true that you can only file for bankruptcy once in your life. The truth is you can file for Chapter 7 bankruptcy in Utah every 8 years and Chapter 13 every 2 years in most cases. If you are going from a Chapter 7 to a Chapter 13 you will likely have to wait 4 years. The point is, it is not a onetime shot in any given situation. Assuming you have waited the necessary time for your type of filing, you may be eligible to file again and we can help. Call and speak with a Utah Bankruptcy Attorney at Utah Debtor Protection now for more information.

Free Consultations

Now that you feel a little better about the bankruptcy process and starting new, pick up the phone and get us started today. We can usually tell you right over the phone whether or not bankruptcy makes sense for you. We offer free consultations and are available anytime so there really is no excuse not to check your options with us. You may have other myths swirling around in your head that are getting in the way of you filing. Call us now to find out if what you believe is the real deal or another false assumption.

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Bankruptcy Forms In Utah | Bankruptcy Court

Posted on January 17, 2013 by Jerry Salcido

If you are looking for Bankruptcy Forms in Utah, it is probably because you will be trying to file and get through the Bankruptcy Process in Utah all on your own. This can be intimidating, but we can help. We understand that not everyone Filing for Bankruptcy in Utah can afford to hire a lawyer (after all, your filing for bankruptcy and that typically means you don’t have a whole lot of extra cash to go around) so we try to help those individuals going pro se get on started on the right path. Now to be sure, filing for bankruptcy without a lawyer representing you can in many cases be a complete nightmare. Bankruptcy is hard enough, doing it by yourself can be extremely difficult and mistakes can lead to the dismissal of your case. So, before you start off on this journey, you should at least speak with a Utah Bankruptcy Lawyer in our office. There is no fee for the initial consultation and we can usually tell you right over the phone if you qualify and what your best bankruptcy options may be.

Bankruptcy Court Forms Online

Some online services provide bankruptcy forms you can fill out and print online. Some of these are better than others but in our experience, most of them are lacking in one form or another. The best place to start if you are looking to fill everything out yourself is the Utah Bankruptcy Court’s website by going here. There you will find most forms you could need to file and get through the process. There is a packet for unrepresented debtors that you should read through completely that will help educate you and get you started on the right foot. The packet is about 41 pages, its long, but we highly recommend going through it before you take any steps to filing. Also included on the court’s website are various pleading forms that can help get you out of jam if the legal process takes a turn and is not going well or the Utah Bankruptcy Trustee is asking you for something and you have no idea what is going on (don’t worry, some attorneys even feel like this every now and again). Of course, if you ever need legal advice, call us and we will see what we can do to help. We offer free initial consultation over the phone and have often jumped into a case midway to bail a client out of a bad situation. Our fees are competitive with market rates and we will listen to your whole story to make sure every issue is dealt with properly.

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