Chapter 13 Bankruptcy or Chapter 7 Bankruptcy in Utah. Utah bankruptcy laws were created to provide specific relief for business owners, individuals and families whose lives are being disrupted by excessive debt. The laws have two basic goals: Debt elimination and property protection. The Utah bankruptcy laws are set forth under federal law. Article I, Section 8, of the U.S Constitution authorizes Congress to enact “uniform laws on the subject of bankruptcy.” Under this grant of authority Congress put the “Bankruptcy Code” into action in 1978. History of bankruptcy law in the U.S. goes back to the 1800’s. Congress’s first law with bankruptcy was the Bankruptcy Act of 1800. Voluntary bankruptcy was first permitted in the U.S by the Acts of 1841 and 1867. The early acts like the Nelson Act and The Bankruptcy Act of 1898 first established debtor-creditor relations that we know today.
The Bankruptcy Court for the District of Utah has set up local bankruptcy rules of practice for use in their court. Utah bankruptcy Laws and the Utah local bankruptcy rules are available on the Utah Bankruptcy Courts website. The local rules can change from time to time but the court maintains the rules up to date on their website. Every bankruptcy district in the U.S. has its own set of local rules. Anyone, attorney or individual representing themself (pro se) and files documents or cases in the Utah Bankruptcy Court should read the local rules before they attempt to file a document. Pro se parties are bound by the local rules just like an attorney. Utah bankruptcy laws are not any different than laws in other states since the U.S. Bankruptcy Code governs but the interpretation and implementation of the laws may vary so speaking with an experienced Utah bankruptcy lawyer is usually in your best interest to see how the laws will affect your situation.