Bankruptcy FAQs

Navigating the Utah Bankruptcy Courts: Your Questions Answered

Are you overwhelmed by debt? Are harassing phone calls, wage garnishments, or the fear of foreclosure keeping you up at night? It’s a heavy burden, but you don’t have to carry it alone.

At Rulon T. Burton, we believe everyone deserves a fresh start. For over 40 years, our expert team has guided more than 20,000 Utahns through financial recovery. We understand the system, we know the law, and we have experience with the Utah bankruptcy courts. This page is designed to answer your most urgent questions and show you there is a clear path forward.

Your journey to financial freedom starts here. When you’re ready, contact us for a free, 100% confidential consultation to discuss your specific case.

Which Path is Right for Me: Chapter 7 vs. Chapter 13?

The most common question we hear is, “Which type of bankruptcy should I file?” The answer depends entirely on your unique financial situation, including your income, assets, and goals. If you have limited income, Chapter 7 may be right for you. If consolidating your debt and establishing a repayment plan gets you on the path to a fresh start, opt for Chapter 13. To figure out which is best for you, look over our bankruptcy services and get in touch for a free consultation regarding your bankruptcy case today.

What is Chapter 7 Bankruptcy? The "Fresh Start"

Often called “liquidation bankruptcy,” Chapter 7 is designed to wipe your slate clean by discharging most of your unsecured debts like credit cards, medical bills, and personal loans. A common misconception is that you will lose everything you own. This is rarely the case. Utah law provides for generous exemptions to protect your essential assets, including your home, car, and retirement savings. Our job is to maximize these protections for you.

What is Chapter 13 Bankruptcy? The "Reorganization Plan"

Chapter 13 bankruptcy allows you to consolidate your debts into a single, manageable monthly payment over three to five years. This is a powerful tool to stop foreclosure on your home, prevent car repossession, and catch up on past-due payments while keeping your valuable assets. At the end of the repayment plan, any remaining eligible unsecured debt is discharged.

Unsure which path to take? Let our experts analyze your situation. Schedule your free consultation today to get a clear recommendation.

Which Path is Right for Me: Chapter 7 vs. Chapter 13?

How much does it cost to file for bankruptcy in Utah?

The initial step is understanding the required court fees. The filing fees for the Utah bankruptcy courts are currently:

  • Chapter 13: $313
  • Chapter 7: $338

Attorney fees will vary depending on the complexity of your case. At Rulon T. Burton, we provide exceptional value and transparent pricing. Your first step is always free, where we can assess your case and provide a clear quote with no hidden costs.

How quickly can I get debt relief?

Immediately. The moment your case is filed with the Utah bankruptcy courts, an “Automatic Stay” goes into effect. This powerful legal injunction instantly stops:

  • Creditor calls and harassment
  • Wage garnishments
  • Foreclosure proceedings
  • Repossessions
  • Lawsuits

If you have all your documents ready, we can often get your case filed and your protection in place within 24 business hours.

What documents do I need to file for bankruptcy?

To ensure a smooth and fast filing, you will need to gather:

  • A complete list of all your assets (property, vehicles, etc.)
  • A complete list of all your debts (creditors, amounts owed)
  • Your pay stubs for the last seven months
  • Your federal tax returns for the last two years

Your Assets, Credit, and Future

Will I lose my home, car, or other assets?

This is the biggest fear for most people, and we’re here to put it to rest. The goal of bankruptcy is a fresh start, not to leave you destitute.

  • In Chapter 13, you keep your assets as part of the reorganization plan.
  • In Chapter 7, you can keep a significant amount of property through “bankruptcy exemptions.” We can often protect your primary home, one vehicle per filer, retirement accounts, and personal belongings. We will work with you to protect everything possible under Utah law.

What assets are generally not protected (non-exempt)?

While we fight to protect what matters most, some assets may be considered non-exempt in a Chapter 7 filing, such as:

  • Second homes or vacation properties
  • Extra vehicles, boats, or ATVs
  • Expensive collections, jewelry, or art (beyond a certain value)

Let’s talk today. We can clarify exactly what assets are protected in your specific case.

How will bankruptcy affect my credit score?

While a bankruptcy filing can remain on your credit report for up to 10 years, the impact is not what you might think. Many of our clients see their credit scores improve significantly within the first year after filing. By eliminating overwhelming debt, you get a clean slate to begin building positive credit responsibly.

Understanding Key Bankruptcy Terms

  • Bankruptcy Trustee: An official appointed by the Utah bankruptcy courts to oversee your case. Their role is to ensure procedures are followed correctly and to administer any non-exempt assets for the benefit of creditors. We handle all communications with the trustee on your behalf.
  • Means Test: A calculation required by the court to determine if you are eligible for Chapter 7 bankruptcy. It compares your income to the median income in Utah for a household of your size. We can perform this test for you as part of your free consultation.
  • Secured vs. Unsecured Debt: A secured debt is backed by collateral (e.g., a mortgage on a house, a loan on a car). An unsecured debt has no collateral (e.g., credit cards, medical bills).
  • Non-Dischargeable Debt: Some debts generally cannot be eliminated in bankruptcy, such as recent tax debts, student loans (in most cases), child support, and alimony.

Don't See Your Question? Your Fresh Start is One Call Away.

Don’t let financial stress control your life for another day. For four decades, the team at Rulon T. Burton has successfully guided over 20,000 Utahns through the complexities of the Utah bankruptcy courts, helping them achieve lasting financial peace.

The next step is simple and risk-free. Let us put our experience to work for you.

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