Debt reorganization
Chapter 13 Bankruptcy in Utah
Chapter 13 lets you keep your property while you repay what you can through a court-approved plan lasting three to five years. It is the tool most people use to stop a foreclosure, catch up on a mortgage or car loan, or protect assets that would not be safe in Chapter 7.
The short version
Keep your home and car with one affordable three-to-five-year plan, and stop foreclosure.
When Chapter 13 is the better choice
- You are behind on your mortgage and want to keep the house
- You are behind on a car loan and need to stop a repossession
- Your income is too high to qualify for Chapter 7
- You have property or equity that Utah exemptions would not fully protect
- You owe taxes or support arrears you need time to repay
- You received a Chapter 7 discharge too recently to file Chapter 7 again
How the repayment plan works
Your plan payment is based on your income, your reasonable living expenses and the kinds of debt you owe. Plans generally last three years if your income is below the Utah median and five years if it is above. You make one payment to the Chapter 13 trustee, who distributes it to your creditors.
Missed mortgage or car payments can be spread across the life of the plan. Unsecured debts such as credit cards are often paid only a fraction of what is owed, and the remaining balance is discharged when you finish the plan.
Additional tools available in Chapter 13
- In some cases, a car loan can be reduced to the vehicle's value if the car was bought more than 910 days before filing
- A second mortgage or home-equity line with no equity behind it may be able to be treated as unsecured debt
- Many tax debts can be paid through the plan without additional penalties accruing
Whether any of these apply depends on the details of your loans and property. We will tell you plainly what is and is not possible in your case.
The Chapter 13 Bankruptcy process, step by step
Free consultation
We look at what you are behind on, your income and your goals, and estimate a realistic plan payment.
Credit counseling course
A short online course required within 180 days before filing.
We file your case and plan
The automatic stay immediately stops foreclosure, repossession and garnishments.
Meeting of creditors
A short video meeting with the Chapter 13 trustee, with your attorney present.
Plan confirmation
The judge approves your plan, and you make one monthly payment to the trustee.
Discharge
After your final plan payment, remaining eligible debts are wiped out.
Chapter 13 Bankruptcy: common questions
Can Chapter 13 stop a foreclosure sale in Utah?
Yes. Filing a bankruptcy case triggers the automatic stay, which halts a scheduled trustee's sale. Chapter 13 then gives you three to five years to catch up the missed payments while you keep making regular ones. Timing matters, so contact an attorney as early as possible.
How much will my Chapter 13 payment be?
It depends on your income, household size, allowed expenses, what you are behind on and the value of your non-exempt property. We calculate a realistic estimate during your consultation.
What happens if I miss a Chapter 13 plan payment?
Contact your attorney right away. Plans can often be modified if your income changes, but repeated missed payments can lead to the case being dismissed.
Can I file Chapter 13 if I have already filed bankruptcy before?
Often, yes. Different waiting periods apply depending on the chapter and filing date of your earlier case, and you may be able to file Chapter 13 even when you are not yet eligible for a new Chapter 7 discharge.
This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Results depend on the facts of each case. See our full bankruptcy FAQ.
Related services
- Stop ForeclosureHalt a trustee's sale and catch up on missed mortgage payments while you stay in your home.
- Stop RepossessionKeep your car, catch up on missed payments and, in some cases, lower the loan balance.
- Chapter 7 BankruptcyWipe out credit cards, medical bills and personal loans, usually in a few months.
Talk to a Utah bankruptcy attorney for free
Every situation is different. A free consultation is the fastest way to learn which option fits yours. Ask about $0-down options.