Salt Lake Bankruptcy Center

Utah Chapter 13 Bankruptcy

Who Files Utah Chapter 13

If a person does not file Chapter 7 they will most often file Utah Chapter 13 bankruptcy. Chapter 13 bankruptcy is most successful for those people who have a steady income and wish to have a chance to pay back their debts. These people have simply fallen behind on their debts and need some help getting back on track.

People who file this form of bankruptcy often have many non-exempt assets. In a Utah Chapter 13, the court will not take the debtors assets. The court allows the debtor to retain his or her assets and the court gives the debtor a chance to repay their debts.

Utah Chapter 13 Process

A debtor who declares Utah Chapter 13 bankruptcy will be required to submit a payment plan to the court that the court will review. The payment plan must show how the debtor will have enough money to pay for his or her basic needs and still have enough to make payments on his or her debts.

During the Utah Chapter 13 payment plan period, the courts will not allow creditors to charge interest to the debtor's debts. The court does not allow the creditors to charge interest so that all payments go straight to the principal of the debt. This helps the debtor more quickly pay off the debt.

The Utah Chapter 13 payment plan expires in 3 to 5 years, depending on the specifics of the payment plan, and then the court gives the debtor a discharge of any remaining unsecured debts.