There are several types of Utah bankruptcy, but the most common are:
Utah Chapter 7 Bankruptcy: Chapter 7 bankruptcy is often referred to as a “liquidation” bankruptcy because it involves the sale of a debtor’s non-exempt assets to pay creditors. Chapter 7 bankruptcy is available to individuals, married couples, and businesses, and it is typically a faster and less complicated process than other types of bankruptcy.
Utah Chapter 13 Bankruptcy: Chapter 13 bankruptcy is often referred to as a “reorganization” bankruptcy because it allows individuals with a regular income to reorganize their debts and repay them over a period of three to five years. Chapter 13 bankruptcy is designed for individuals who have a regular income and want to keep their assets, such as a home or car, but need to catch up on missed payments.
Chapter 11 Bankruptcy: Chapter 11 bankruptcy is typically used by businesses, including corporations, partnerships, and limited liability companies, to reorganize their debts and operations. Chapter 11 bankruptcy is a complex and expensive process that allows a business to continue operating while it reorganizes its debts and operations.
Utah Chapter 12 Bankruptcy: Chapter 12 bankruptcy is similar to Chapter 13 bankruptcy but is specifically designed for family farmers and fishermen. It allows these individuals to reorganize their debts and repay them over a period of three to five years while they continue to operate their farm or fishing business.
Chapter 9 Bankruptcy: Chapter 9 bankruptcy is a type of bankruptcy that is only available to municipalities, including cities, towns, and counties. It allows a municipality to reorganize its debts and finances while it continues to provide essential services to its residents.
Each type of bankruptcy has its own eligibility requirements, process, and consequences, so it’s important to speak with a bankruptcy attorney to determine which type of bankruptcy is best for your individual circumstances.