The word bankrupt has come to represent financial failure and insolvency. In Utah a bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of a court.
Finally, it is important to understand that filing for bankruptcy is a serious decision that should not be taken lightly. It is a legal process that involves working with a bankruptcy attorney, completing paperwork, and attending court hearings.
Filing for bankruptcy isn’t the right decision for everyone. But for individuals who are worried about debt, who want to protect specific property, or who see no other way forward, it can be the best option to bring relief.
In the year 2020, 544,463 people filed bankruptcy in the United States. That number may seem enormous, but in reality, Bankruptcy filings in 2020 were the lowest they have been in thirty-five years. This may seem counterintuitive for the type of year 2020 was, but it makes sense when you think more about the government assistance that a lot of people received last year.
Believe it or not, when it comes to current primary causes of bankruptcy, the economic impact of Covid-19 is not what leads to most bankruptcy right now. The main reasons to file for bankruptcy in Utah tend to be things such as payday loans, co-signing for other people, trying to aid grown children with too much financial help, medical debt,
To better understand bankruptcy and taxes a little background information is needed; it then becomes more clear why bankruptcy and taxes are so enter twined. First you have to understand that bankruptcy is made possible because of federal laws, and the federal government is made possible because of tax dollars. Why would the government try to give you a perk when you really need the help?
Because of abuses of the bankruptcy system in the past the current Bankruptcy Code is designed to penalize multiple bankruptcy filers. This multiple filing is called “serial filing” in the bankruptcy world. Individuals who are “serial filers” can lose important benefits in their bankruptcy – the most important of which is called the automatic stay – the act of stopping immediately a foreclosure, lawsuits or other collection activity.
So the natural question you will ask yourself after you file for bankruptcy is now what? This post is to assure you that asking what will happen after you file for bankruptcy is a common and necessary question
Consequences of Bankruptcy. Bankruptcy information on your credit report may make it very difficult to get additional credit shortly after the bankruptcy is discharged — at least until the information cycles off your credit report. It will be important to begin rebuilding your credit right away, making sure you pay all your bills on time. You’ll also want to be careful not to fall back into any negative habits that contributed to your debt problems in the first place.
The term “Utah bankruptcy exemptions” refers to assets that you get to keep when you file bankruptcy. In Utah, as a practical matter, most people keep all their assets when they file bankruptcy if they do a reasonable amount of legal pre-bankruptcy planning.