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Your Opportunity for a Financial Reorganization in Utah
Chapter 13 bankruptcy, often referred to as reorganization bankruptcy, provides a structured path to manage and repay your debts while safeguarding your assets. If you’re seeking a way to get your finances back on track, Rulon T. Burton & Associates offers experienced Chapter 13 bankruptcy services to individuals and families throughout Utah.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows you to reorganize most or all of your debts into a manageable repayment plan over a predetermined period, typically three to five years. This process is designed to help you keep valuable assets like your home and vehicles while making affordable payments to your creditors. Unlike Chapter 7, where assets may be liquidated, Chapter 13 focuses on creating a sustainable repayment strategy influenced by your monthly income. Under U.S. Bankruptcy Code, once a debtor has filed for Chapter 13 bankruptcy, they are immediately protected from collection efforts, lawsuits, wage garnishments, and any contact from creditors. This “automatic stay” provides immediate relief and breathing room while your repayment plan is developed and approved.
Essential Documents for Your Chapter 13 Bankruptcy Filing:
To initiate your Chapter 13 bankruptcy case, you’ll need to gather specific documents. Our team will guide you through this process, but a general list includes:
- Proof of Identity
- Proof of Income (pay stubs, business records, etc.)
- Income Tax Returns (for recent years)
- Real Estate Documents (deeds, mortgage statements)
- Lease Agreement (if you rent a home or vehicle)
- Vehicle Title(s)
- Account Statements (bank accounts, investment accounts for the past 3 months)
- Divorce Decree (if applicable)
- Child Support Statements (if applicable)
- Proof of Charitable Contributions
Essential Documents for Your Chapter 13 Bankruptcy Filing:
Chapter 13 bankruptcy allows you to reorganize most or all of your debts into a manageable repayment plan over a predetermined period, typically three to five years. This process is designed to help you keep valuable assets like your home and vehicles while making affordable payments to your creditors. Unlike Chapter 7, where assets may be liquidated, Chapter 13 focuses on creating a sustainable repayment strategy influenced by your monthly income. Under U.S. Bankruptcy Code, once a debtor has filed for Chapter 13 bankruptcy, they are immediately protected from collection efforts, lawsuits, wage garnishments, and any contact from creditors. This “automatic stay” provides immediate relief and breathing room while your repayment plan is developed and approved.
How to File Chapter 13 Bankruptcy
Navigating the Chapter 13 bankruptcy process can be complex, but you don’t have to do it alone. We offer a free downloadable Bankruptcy Packet that walks you through the steps for how to file, proceed with credit counseling, and establish a repayment plan that suits your budget.
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Unique Benefits of a Chapter 13 Bankruptcy Filing:
Choosing Chapter 13 bankruptcy offers distinct advantages, particularly if you want to keep your assets and need a structured way to catch up on payments:
Stop foreclosure
- A Chapter 13 bankruptcy filing can halt a foreclosure at any point before the trustee’s sale. This allows you to stay in your home and, through your repayment plan, get current on your mortgage payments. This crucial benefit is not available in Chapter 7.
Pay Past-Due Taxes
If you owe past-due income taxes, you can include them in your Chapter 13 bankruptcy repayment plan. This typically allows you 3-5 years to pay them, often with no interest and no new penalties. Even if tax liens have been filed, these debts can be included and, in some cases, even reduced, without fear of garnishment or property seizure by taxing authorities. This offers a significant advantage over Chapter 7, where taxing authorities dictate repayment terms.
"Strip-off" Unsecured Junior Mortgage
- In a Chapter 13 bankruptcy, if your home’s value is less than the amount owed on your first mortgage, you may be able to have a second or third mortgage declared “wholly unsecured.” Upon receiving your bankruptcy discharge, this junior lien can be removed without you having to pay it. This powerful tool is exclusive to Chapter 13 bankruptcy filings, and we can discuss its applicability to your situation in person.
Reduce Car or Furniture Loans
If your car loan is more than 30 months old or your furniture purchase is more than 1 year old, Chapter 13 bankruptcy may allow you to reduce the loan principal to the actual value of the asset. The interest rate can also be lowered to a reasonable rate. For newer loans, we can still often help by lowering interest rates. This can result in significant savings if you wish to retain the property.
Keep your assets
Unlike Chapter 7, where a trustee may sell non-exempt assets to pay creditors, Chapter 13 bankruptcy allows you to retain your property. You pay through your plan what unsecured creditors would have received in a Chapter 7, meaning you get to keep your home, vehicles, and other valuable possessions (with exceptions for certain luxury items). This also generally applies to your tax refunds, allowing you to keep a significant portion. We’ll detail the specifics during our consultation.
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Utah Chapter 13 Bankruptcy Attorney Team With Experience
Rulon T. Burton & Associates has been a trusted resource for Utah families since 1981. We possess the extensive knowledge and practical experience to help you maximize the benefits of filing Chapter 13 bankruptcy with minimal stress and frustration. Our team of experienced bankruptcy attorneys has successfully handled a wide range of complex cases and is ready to assist you.
Learn more about our dedicated team of attorneys and paralegals here. Our experts receive weekly bankruptcy filing training to ensure they provide the best possible experience and outcomes for our clients.
Don’t let overwhelming debt control your life. Contact the trusted attorneys at Rulon T. Burton & Associates today for a free consultation and take the first step toward a brighter financial future.
Get in touch today by calling 801.305.3702.
448 E. Winchester St. Suite 175
Murray, UT 84107
Tel: (801) 305-3702
Text: (801) 288-0202
Fax: (801) 288-0947
Email: justin@rulontburton.com