Am I Eligible for Bankruptcy in Utah?
Most people who are struggling with debt qualify for either Chapter 7 or Chapter 13. Which one depends mostly on your income, what you own and what you are trying to protect. Here is how it works in plain terms.
Signs bankruptcy may help
- You can only make minimum payments on your credit cards
- You use credit cards for groceries, gas or rent
- You rely on payday or title loans
- Your wages are being garnished, or you have been sued by a creditor
- You have received a foreclosure or repossession notice
- A job loss, divorce or medical emergency upended your budget
- You could not pay off your debts within five years
If any of these sound familiar, it is worth a free conversation. Waiting usually means fewer options, not more.
Chapter 7 eligibility
You need to pass the means test, and you cannot have received a Chapter 7 discharge in a case filed within the last eight years.
About Chapter 7Chapter 13 eligibility
You need regular income to fund a plan, and your debts must be under limits set by federal law that cover most households.
About Chapter 13Eligibility questions
What is the means test?
The means test decides who can file Chapter 7. It compares your household income for the six months before filing to the median income for a household your size in Utah. Below the median, you generally qualify. Above it, a second calculation based on allowed expenses decides whether you still qualify.
What if I make too much for Chapter 7?
You may still be able to file Chapter 13, which sets up a payment plan based on what you can afford. Chapter 13 can still eliminate a large share of unsecured debt by the end of the plan.
Is there a minimum amount of debt to file bankruptcy?
No. There is no minimum. The question is whether bankruptcy is the best way to deal with the debt you have compared with other options.
What will I be asked during the consultation?
Your average monthly income, living expenses, housing situation, any foreclosure or repossession notices, credit card and medical debts, recent tax filings and the property you own. Having recent pay stubs and bills handy speeds things up.
See If You Qualify
Answer a few quick questions and we will reach out to set up your free, confidential consultation.