Written by the Upsolve Team.
Updated September 29, 2020
Many people throughout Junction are struggling with overwhelming debt. Junction, Utah has a high unemployment rate of 11.62%, which is one of the contributing factors. Financial problems can affect even the most responsible people. A divorce, the loss of a job, or mounting medical bills could place anybody in an extremely difficult position. When you’re not able to pay for your mortgage and bills, filing bankruptcy in Junction can be an effective solution. Many people who are facing financial troubles have turned to bankruptcy as a means to overcome their financial issues.
An individual can easily file for a Chapter 7 bankruptcy in Junction. This kind of bankruptcy filing doesn’t require a repayment plan, allowing you to get a fresh start free of several types of debts. In a Chapter 7 bankruptcy in Junction, a bankruptcy Trusteewill only sell your unprotected assets. In many cases, your home or car may be exemptfrom sale provided you aren’t behind on payments. In contrast, in a Chapter 13 bankruptcy filing, you can keep your property and create a 3 to 5-year repayment plan. A person filing bankruptcy in Junction generally has to decide whether to file for bankruptcy protection under Chapter 7 or Chapter 13. A Chapter 7 bankruptcy usually remains open for about 6 months (from the initial filing date to the date your case is closed), with the discharge being entered about 90 days after the filing of the case. If you have considerable unsecured debt with limited income, you may be the right candidate for a Chapter 7 bankruptcy in Junction.
Let’s discuss some myths and misconceptions people have when filing bankruptcy in Junction. A common misconception in Junction bankruptcy cases is that people believe that filing bankruptcy is a personal failure. However, responsible people sometimes have to file for bankruptcy for any number of reasons, such as medical debt and unexpected financial emergencies. Another misconception that people have is that they’ll need a lot of money to pay a bankruptcy lawyer to learn about bankruptcy protection. Actually, you can getfree legal help or file bankruptcy on your own!
Junction Bankruptcy Lawyers - Estimated Cost
The bankruptcy attorney’s fees are often negotiable and are mainly based on the complexity of your Chapter 7 bankruptcy in Junction. The typical cost of a bankruptcy lawyer in Junction ranges from $595 to $1,200. A bankruptcy lawyer can help you fill out all the paperwork and gather all the necessary documents and answer your questions about filing bankruptcy to put you at ease. However, hiring a bankruptcy lawyer is not mandatory, and you can file Chapter 7 bankruptcy in Junction on your own and save a lot of money.
How to File Bankruptcy in Junction, Utah for Free
Many people want to know how to file bankruptcy in Junction for free. If you’re one of them, you have come to the right place. This City Guide will give you an overview of the Junction bankruptcy process so that you can get out of debt soon. Follow these simple steps, and you’ll be on your way to financial stability and get the peace of mind you deserve.
Collect Your Junction Bankruptcy Documents
When filling out your bankruptcy paperwork, you will have to disclose information about your financial affairs, like your expenses, income, and assets. Your financial records, such as your most recent bank statements, are some of the first documents you must collect. These documents will help determine which type of bankruptcy is best for you. Some legal documents that you will need when filing bankruptcy in Junction are your vehicle titles and tax returns for the past three years. Collecting these documents first will save you a lot of hassles later on. Filing Chapter 7 bankruptcy in Junction comes with strict requirements to be truthful, accurate, and complete in your forms, and meeting these requirements helps ensure things go as smoothly as possible.
Take Credit Counseling
In 2005 some important changes were made to the Bankruptcy Code. These changes were made through the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). One of the changes is the mandatory requirement that people filing bankruptcy in Junction must participate in a bankruptcy credit counseling course. Once you complete your credit counseling course, you will get a certificate of completion that you have to submit to the Bankruptcy Court along with your Junction bankruptcy petition. This course takes about two hours and is available by phone, in person, or online. You will find a list of approved pre-bankruptcy credit counseling services on the U.S. Trustee’s website. Money Management International is an approved creditor counselor in Junction.
Complete the Bankruptcy Forms
You must complete all required Court formswhen filing bankruptcy in Junction starting with the petition. Also, you have to list assets and income and a list of your creditors names and addresses called the creditor matrix. To file a Chapter 7 bankruptcy in Junction, you’ll have to complete several forms. You have to be diligent in completing your bankruptcy forms, as you’re signing everything under penalty of perjury even if you are working with a lawyer. Also, make sure you check out the Utah Bankruptcy Court’s page for people filing bankruptcy without an attorney. The page has helpful information on how to use the forms. Some of the common mistakes that people make when filing bankruptcy in Junction is not filling out the forms correctly. For example, some people hide their assets when completing their bankruptcy forms. This is considered bankruptcy fraudand should be avoided.
Get Your Filing Fee
Although it might seem strange that you will have to pay a filing fee to file Chapter 7 bankruptcy in Junction, you have to pay it, unless you qualify for a fee waiver. The fee is necessary as it provides funding for the Court and the bankruptcy Trustees that make the Utah bankruptcy system work. It now costs $335 to file a Chapter 7 bankruptcy in Junction and $310 to file a Chapter 13, for both individuals and married couples. If the Bankruptcy Court waives your fee, you don’t have to pay it when filing bankruptcy in Junction. If you aren’t eligible to have your filing fee waived, but can’t quite save up the full $335, you can ask the Bankruptcy Court to allow you to pay the filing fee in installments.
Print Your Bankruptcy Forms
When you have everything ready to start completing the Junction bankruptcy forms you need to file a Chapter 7 bankruptcy in Junction, print your forms. If you are comfortable working with fillable PDF forms, you can simply start inputting everything on your computer. The Court will accept Junction bankruptcy forms completed by hand too, so do what you are most comfortable with. If you have hired a lawyer for filing bankruptcy in Junction, they will file the case electronically for you. It’s essential to ensure that all the information you have provided is complete, accurate, and up to date. You may print your copy double-sided; however, the bankruptcy forms you file with the Court cannot be double-sided. Page one of this useful set of checklists will provide you with a roadmap for all documents you will have to print before you file Chapter 7 bankruptcy in Junction.
Go to Court to File Your Forms
Once you have everything ready, it’s time to head to the Bankruptcy Court to file everything with the clerk's office. You should bring both copies of your bankruptcy forms, and provide one set to the clerk for filing. You can go to the Frank E. Moss United States Courthouse in Salt Lake City to submit everything for your Junction bankruptcy in person. If you’d rather safe yourself the trip, you can also mail everything to the Court. Ask the clerk to stamp your copy, so that you have all the relevant information about when you filed Chapter 7 bankruptcy in Junction on your copy. As soon as the clerk provides you with your case number, you may let all your creditors know that they can no longer contact you.
Mail Documents to Your Trustee
When you file a Chapter 7 or 13 bankruptcy in Utah, the Bankruptcy Court will appoint a Trustee to oversee your Junction bankruptcy case. The Trustee’s duties often include the following:
verifying the completeness and accuracy of your paperwork
looking for any signs of fraud
finding money to pay your debts
conducting the 341 meeting
disbursing funds to your creditors
The Junction bankruptcy Trustee comes from a pool of unbiased and neutral bankruptcy Trustees. You will have to provide certain documents to your Trustee, such as paycheck stubs and tax returns. In certain cases, the Chapter 7 bankruptcy Trustee also has the authority to get back certain property that you transferred to somebody before filing bankruptcy in Junction. Filing Chapter 7 bankruptcy in Junction means cooperating with your bankruptcy Trustee.
Take Bankruptcy Course 2
You will have to complete a second course as a condition to receiving your dischargewhen filing bankruptcy in Junction. The terms debtor education, pre-discharge course, post-filing course, and personal financial management class all refer to this class. And this is the course you have to take after filing bankruptcy in Junction. The goal of this debtor education requirement is to inform and educate you on making sound financial choices so that you will not have to seek Junction bankruptcy relief in the future. There are many approved debtor education providers in Utah, but only one of them is located in Utah. Some course providers automatically file your certificate of completion with the Court for you, while others will send it to you to file with the Bankruptcy Court.
Attend Your 341 Meeting
Once you file Chapter 7 bankruptcy in Junction, the bankruptcy Court will set one meeting which you’ll have to personally attend. It is called the 341 meeting of creditors. The meeting is conducted by your Junction bankruptcy Trustee. This hearing offers your Trustee and creditors an opportunity to ask you questions under oath and confirm the information that is contained in your Junction bankruptcy schedules and statements. In most cases, the meeting takes between 5 and 15 minutes. Don’t let the fact that creditors can show up for your 341 meeting frighten you; in reality that rarely ever happens. The main purpose of this meeting is for your Trustee to verify your identity. Hence, you should be prepared and bring along your valid ID as well as evidence of your social security number.
Dealing with Your Car
There are many things related to your vehicle that you need to keep in mind when you file Chapter 7 bankruptcy in Junction. If you don’t have a car loan, you may keep your car provided its resale value is lower than the available exemption. In Utah, you may exempt as much as $5,000 in equity in your car. If you have a car loan and do not have any problems making car payments and the car is in good condition, you may keep everything as it is by entering into a reaffirmation agreement. If you would like to surrender your car to the lender, your lender will file a motion with the Court, asking permission to retake your car after your Junction bankruptcy case is filed.
Utah Bankruptcy Means Test, Bankruptcy Forms, and Exemptions for Junction
Utah Means Test
The Means Test is a standard income test that determines if you qualify to file a Chapter 7 bankruptcy in Junction. To make sure filers do not abuse the bankruptcy system, they have to take the Utah bankruptcy Means Test. If you are making more than the median Utah income, then you will have to complete the extended analysis under the Utah bankruptcy Means Test. Find out about theChapter 7 income limits to make sure you are filing bankruptcy in Junction under the proper Chapter. The Utah Bankruptcy Means Test calculator will take your gross annual income (average) and subtract certain monthly expenses and withholdings.
Median Income Levels for Utah
Utah Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
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Poverty Levels for Utah
Utah Fee Waiver Eligibility for Cases Filed On or After May 1, 2020
Eligible for fee waiver when under 150% the poverty level.
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Utah Bankruptcy Forms
The Utah bankruptcy forms that you have to file to meet all filing requirements are a combination of official national forms and a few local forms that are created specifically for use within the district you file in. You will have to complete these forms when filing bankruptcy in Junction. Check out the Utah guide for bankruptcy forms to get a comprehensive overview of the forms you will need. If you are feeling overwhelmed because of these forms, check out our free bankruptcy assistance and see if you are a good fit for our free service. As the forms are available for free, you should not purchase blank forms from anyone.
While the Bankruptcy Codehas a list of bankruptcy exemptions, note that these exemptions aren’t available in Utah. So, Utah law requires filers to use the Utah bankruptcy exemptions under state law and not the federal bankruptcy exemptions. The Utah bankruptcy exemptions determine the property you can protect from your creditors when you are filing bankruptcy in Junction. The Homestead laws in Utah are currently very favorable for filers. Individuals in Junction usually keep exempt property when they file a Chapter 7 case. You may claim a homestead exemption in your primary residence in the amount of $30,000.