Utah Chapter 13
Chapter 13 bankruptcy in Utah
A three-to-five-year court plan that can protect property and create time to catch up.
Low-upfront payment options are available in many Chapter 13 cases.
Much of the allowed attorney fee can often be paid through the plan, subject to the case and court requirements.
When Chapter 13 is useful
Chapter 13 is often the better tool when a homeowner needs to stop a foreclosure sale and cure arrears, a debtor needs time to address secured or priority debt, or Chapter 7 is unavailable or would create an asset problem.
Stopping foreclosure
If the case is filed before the foreclosure sale and the automatic stay applies, the filing generally stops the sale. A Chapter 13 plan can then provide for curing a mortgage default over time while regular payments continue. Timing is critical.
Read: Can bankruptcy stop foreclosure?
Vehicles in Chapter 13
Chapter 13 can be used to cure car-payment arrears and, in some cases, modify the treatment of a vehicle claim. The available treatment depends on the loan, purchase timing, value, and other facts.
What does the monthly plan payment cover?
The plan payment can include trustee fees, arrears, priority claims, secured debt treatment, attorney fees, and whatever distribution to unsecured creditors the Bankruptcy Code requires. There is no honest one-size-fits-all payment estimate without reviewing the numbers.
If there is a sale date, say it first
A foreclosure scheduled tomorrow is a different problem from a mortgage that is two months behind. The same is true for a vehicle that has already been repossessed. Tell us the deadline at the start of the consultation.
Chapter 13 is powerful, but timing and plan math matter.
General information only; not legal advice. Repeat filings can limit or prevent an automatic stay, and a completed foreclosure sale may change the available relief.
Chapter 13 guides