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At Beehive Advocates we offer focused, yet personal attention to our clients who are facing a financial crisis. Located in Salt Lake City, we offer services that protect debtors' rights. We will counsel you regarding your available options and can help you make an educated decision about how to handle your financial situation — from handling your debt dispute and debt negotiation to the possibility of bankruptcy filing. If you have questions, we have answers.

Bankruptcy

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Utah Bankruptcy - Notice of Garnishment

NOTICE OF GARNISHMENT AND EXEMPTIONS
NOTICE: YOUR PROPERTY MAY BE TAKEN TO PAY A CREDITOR.
PLEASE READ THIS CAREFULLY.

  1. A judgment for money has been entered against you, and the creditor has taken steps to garnish your money or property to pay the judgment. If you think the creditor has improperly garnished some of your money or property, you may object to the garnishment by taking the steps described below. You may not use these steps to object to the judgment. If you think the judgment itself is improper, you must file a timely motion under Utah Rule of Civil Procedure 60(b) to set the judgment aside.
  2. If you are the judgment debtor in this action, your rights may be affected. You should read this notice and take steps to protect your rights.
  3. If you are not the judgment debtor in this action, papers filed with the court indicate that you may have an interest in the judgment debtor’s property. Your rights may be affected, and you should read this notice and take steps to protect your rights.
  4. The Garnishee (someone who possesses your property) has been ordered to hold your property. This means that you cannot obtain the property and it may be used to pay a judgment creditor.
  5. Certain property and money are exempt from execution (cannot be garnished). The following is a partial list of exempt property and money, but some of these exemptions might not apply to judgments for alimony or child support.

A burial plot for you and your family.

Health aids.

Benefits because of disability, illness or unemployment.

Medical care benefits.

Veteran’s benefits.

Social security benefits.

Supplemental security income benefits (SSI).

Workers’ compensation benefits.

Certain retirement benefits.

Public assistance.

Money or property for child support, alimony or separate maintenance.

Certain furnishings, appliances, carpets, animals, books, musical instruments, and heirlooms.

Provisions for 12 months. Notice of Garnishment and Exemptions Approved Board of District Court Judges October 17, 2008 Amended September 12, 2012 Page 2 of 2

Wearing apparel, not including jewelry or furs.

Beds and bedding.

Certain works of art.

Compensatory damages from bodily injury or wrongful death.

The proceeds of certain life insurance contracts and trusts.

Books, implements and tools of a trade.

A personal motor vehicle.

A motor vehicle used in trade or business.

Part of your wages.

Property of a person who did not have a judgment entered against him or her, such as the co-owner of the property being held.

You should consult Utah Code Title 78B, Chapter 5, Part 5, and the Utah Exemptions Act for full information about exemptions. There is no exemption solely because you are having difficulty paying your debts.

If you believe that the Writ of Garnishment was issued improperly, that the Answers to Interrogatories are inaccurate, that the judgment creditor owes you money, or that you are entitled to an exemption, DO THE FOLLOWING IMMEDIATELY. You have a deadline of 10 business days from the date the Garnishee mailed or delivered this notice to you.

Complete the attached “Reply and Request for Hearing” form.

Sign your name in the space provided.

Mail or deliver the form to: the court clerk, the judgment creditor, (or judgment creditor’s attorney) and the Garnishee. Keep a copy for your records. The name and address of the court, the judgment creditor, (or judgment creditor’s attorney) and the Garnishee are on the first page of the Writ of Garnishment.

The court clerk will schedule the matter for hearing and notify you. You should file with the Reply and Request for Hearing form or bring to the hearing any documents that help you prove your claim.

If you fail to take these steps, the property being held may be used to pay a judgment creditor.

You may consult an attorney and have the attorney represent you at the hearing.

What is a Trustee

When a Chapter 7 bankruptcy is filed, an impartial bankruptcy trustee is appointed to oversee and administer the case. The Chapter 7 bankruptcy trustee has many responsibilities that come with this appointment.

Here are the main duties of the bankruptcy trustee in Chapter 7 bankruptcy.

Reviewing the Bankruptcy Petition and Documents

When you file bankruptcy you file a petition and other papers with the court disclosing your personal and financial information.  Your bankruptcy papers include information about your debts, your property, your income, and the state of your financial affairs. In addition to filing your papers with the court, you usually must send the bankruptcy trustee certain documents such as pay stubs, tax returns, and information about your assets.

It is the trustee’s job to review your bankruptcy petition and verify the information and calculations using your financial documents and other independent sources. For example, if you state that you make $3,000 a month in your bankruptcy papers, the trustee will compare that against your pay stubs to make sure the figure is accurate.

Examining the Bankruptcy Filer Under Oath

Approximately a month after you file your case, you must attend a hearing in front of the bankruptcy trustee.  This is called the 341(a) meeting of creditors because any of your creditors are also free to come and ask you questions during the hearing.  However, unless they feel that you are hiding assets, creditors rarely attend these hearings.  The bankruptcy trustee’s job is to conduct the hearing and ask you questions while you are under oath about the information contained in your bankruptcy documents.

What is a Discharge

What is a discharge in bankruptcy?

A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.

Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien.

When does the discharge occur?

The timing of the discharge varies, depending on the chapter under which the case is filed. In a chapter 7 (liquidation) case, for example, the court usually grants the discharge promptly on expiration of the time fixed for filing a complaint objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse (60 days following the first date set for the 341 meeting). Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In a chapter 13 the court generally grants the discharge as soon as practicable after the debtor completes all payments under the plan. Since a chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing. The court may deny an individual debtor's discharge in a chapter 7 or 13 case if the debtor fails to complete "an instructional course concerning financial management." The Bankruptcy Code provides limited exceptions to the "financial management" requirement if the U.S. trustee or bankruptcy administrator determines there are inadequate educational programs available, or if the debtor is disabled or incapacitated or on active military duty in a combat zone.


Contact Beehive Advocates

To schedule a free initial consultation , call (801) 432-2975 or fill out our contact form today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

What is the 341 Meeting

Every Chapter 7 bankruptcy is administered by a Chapter 7 trustee. The trustee's main task is to sell nonexempt property to repay general unsecured creditors. The trustee also looks for bankruptcy fraud, makes sure your paperwork is accurate, and conducts an  investigation into your property and your finances. The trustee does much of this fact finding in the meeting of creditors (sometimes called the 341 hearing). If you file for Chapter 7 bankruptcy, you must attend the meeting of creditors.

The meeting of creditors is so named because your creditors may also appear and ask you questions, although most won't. 

When the Chapter 7 trustee calls your case, you will sit at a table with your attorney so the trustee can question you. If any of your creditors or their attorneys are in attendance, they will sit at the table with you. Your trustee will question you first. 

The trustee must determine if you have any nonexempt property he or she can sell, or if you have made any payments to creditors or transferred any money or property before your bankruptcy that he or she can get back. The trustee acts on behalf of your unsecured creditors, and he or she will want to make sure that your schedules provide accurate information about how much your property is worth. The 341 meeting is the trustee's opportunity to ask you about information in your paperwork, such as property values and past financial transactions.

The trustee's questions will vary depending on the local rules of your bankruptcy court and the trustee's own custom. Typical topics of questioning include:

  • why you are filing bankruptcy
  • whether you have listed all your property in your schedules and whether you have listed accurate values
  • whether you have repaid any of your creditors within the three months prior to your bankruptcy
  • whether you have repaid any relatives or close friends in the last year
  • whether you have sold or given away any property or transferred any money in the past several years
  • whether you own or have ever owned a business
  • how you determined the value of your property listed in your paperwork
  • whether your income is accurate in your schedules and on your means test
  • whether you have dependents
  • whether you are married, divorced, separated, or single
  • whether you owe child support, alimony, or any other domestic support, and
  • whether your monthly expenses are necessary and reasonable.

If the trustee has no further questions and there are no creditors present, the trustee will conclude the meeting. If there are creditors present, the trustee will allow them to ask you questions.

The Trustee Will Review Your Case Before the 341 Hearing

The trustee's investigation begins as soon as you file your case, and the trustee will review your bankruptcy paperwork before your 341 meeting. The trustee will review all your debts, income, and expenses, as well as your Statement of Financial Affairs, which provides a brief history of your major financial transactions. The trustee will also review your previous federal tax returns and your pay stubs.

What to Bring to the Meeting of Creditors

You must bring photo identification and proof of your Social Security number to the meeting. The trustee will not conduct the meeting if you do not have these items, so if you forget them or do not have them, you will have to return at a later date for a rescheduled meeting.

Your Chapter 7 trustee may have his or her own individual requirements about what you must bring to the meeting. The trustee will notify your attorney about what you must bring to the meeting; if you do not have an attorney, the trustee will notify you directly. Typical documents a Chapter 7 trustee may require you to bring to your 341 meeting include:

  • Bank Statement - for the month that you filed in
  • Pay Stub - your most current one before the 341 meeting date

If you do not bring these required items, the trustee will either move your meeting to a later date or require you to submit them by a certain date to avoid coming back.

Tax Refund after Filing Bankruptcy

What To Do if You Receive a Tax Refund Check After Filing for Bankruptcy

A tax refund you receive after the petition is filed will be part of your estate if it is based on income you earned before the bankruptcy. You may, however, be able to keep it.

In bankruptcy, every debtor is allowed to keep (exempt) a certain amount of property regardless of how much the person owes to creditors. The amount a person can exempt depends upon the state where the bankruptcy petition will be filed. Some states have a generous amount for exemptions that could cover a tax refund. 


Contact Beehive Advocates

To schedule a free initial consultation , call (801) 432-2975 or fill out our contact form today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

CHAPTER 7 BANKRUPTCY NO MONEY DOWN

ASK ABOUT OUR UTAH CHAPTER 7 BANKRUPTCY 
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(801) 432-2975
10907 South State Street
Sandy, Utah 84070

 

 

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