Meredith Law Office is amongst the leading law firms in Utah in representing individuals who face financial distress and need to consider filing bankruptcy. We have helped many hundreds of individuals and couples get a fresh start through bankruptcy. Our head bankruptcy attorney Lillian Meredith gained an insider perspecfive by working for several bankruptcy trustees. If you need help with your bankruptcy, call for free initial consultation.

Chapter 7 bankruptcy is considered "liquidation" bankruptcy.  Under the bankruptcy code the debts are forgiven and the debtor is given a fresh start. To qualify for chapter 7 the debtors income must meet the "means test."  All non-exempt assets are sold to pay the creditors.  Exempt assets are those assets that the debtor will keep to allow for a fresh start. Utah's exemptions allow for items such as $3,000 equity in vehicle, appliances such as refrigerator, washer, dryer, and $30,000 equity in home.  Not all debts are forgiven or discharged.  Debts that are not discharged are  student loans and taxes.  There are exceptions.  Consult with an attorney to determine if you qualify for an exception to discharge student loans or taxes.

Chapter 13 bankruptcy is considered "reorganization."  This chapter is available for those that do not qualify for chapter 7 or those that would like to keep assets and need time to reorganize the debts. Situations where the debtor's house is in foreclosure and needs time to pay the arrearage or to modify the loan would generally qualify for chapter 13.  In this chapter, you will make monthly payments to the trustee for 3 to 5 years depending on your income and the debts to be paid.