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Draper Bankruptcy Lawyer

The truth is, if you qualify, you can file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. While a Chapter 13 bankruptcy reorganizes debt into a repayment plan, a Chapter 7 bankruptcy, will eliminate all of your debt (with a few exceptions). Chapter 7 bankruptcy rules determine who qualifies, how to file, and what debt is eligible for discharge.  To know if you qualify and if all of your debt will be erased, you need to speak with a bankruptcy lawyer in Utah who can help you.

Draper Bankruptcy Lawyer

Qualifying for Chapter 7 Bankruptcy

Income criteria established by bankruptcy law determine which debtors may file for Chapter 7 bankruptcy. In order to qualify under income guidelines, a filer’s income must be equal to or fall below the median income in the filer’s state. Every state has different income guidelines. A filer that falls within a state’s income criteria may file for Chapter 7.

However, if the filer’s income is above the state’s median, the bankruptcy court will require the filer to take a “means test” in order to establish eligibility for Chapter 7. The means test prevents filers with the ability to repay creditors from discharging debt. The means test assesses the filer’s debt and income from the preceding six months. If the debtor has a certain amount of income leftover every month after paying creditors, the debtor will fail the means test. Although the debtor is ineligible for Chapter 7, Chapter 13 is an option. A Chapter 13 bankruptcy allows the debtor to repay creditors in a five-year repayment plan.

Who is Ineligible for Chapter 7 Bankruptcy

Under Chapter 7 bankruptcy rules, a debtor is ineligible under the following circumstances:

  • A previous debt was discharged within the past eight years under Chapter 7;
  • A previous debt was discharged within the past six years under Chapter 13;
  • Their income, expenses and debt would allow for a Chapter 13 filing;
  • The debtor attempted to defraud creditors or the bankruptcy court; or
  • The debtor failed to attend credit counseling.

How to File for Chapter 7

A debtor must attend credit counseling prior to filing for Chapter 7. Upon completion of credit-counseling with an agency approved by the United States Trustee, the debtor can file for bankruptcy with a local bankruptcy court. There is a cost associated with filing. Check with the Trustee’s Office to learn the exact amount. A debtor is required to provide information about income, debt, expenditures, creditor holdings of secured and unsecured debt, the sale of prior property, and a list of exempt property. Exempt property is property that Chapter 7 bankruptcy rules allow a debtor to keep. Each state has its own guidelines, but exempt property typically includes clothing, furniture, and cars.

The Bankruptcy Automatic Stay

Once a debtor files for bankruptcy, the bankruptcy court will issue an automatic stay, or an “Order for Relief.” An automatic stay protects a debtor from a creditor’s attempt to collect on a debt during the bankruptcy process. In effect, all collection activities, including any pending lawsuits, must cease. An automatic stay will prevent wage garnishment, filing of liens, and the seizure of a debtor’s property such as a house, a car, or a bank account. If the bankruptcy court dismisses a case, the automatic stay also terminates and the creditor may commence collection activities.

What Does the Trustee Do?

The bankruptcy court appoints a trustee for each bankruptcy case. The trustee is responsible for overseeing the case to ensure that the debtor files the appropriate documents. The trustee must also determine whether the sale of nonexempt property will produce enough income to pay creditors. If property is unlikely to generate substantial compensation in comparison with the time and effort needed to sell the property, the trustee will likely allow the debtor to keep the nonexempt property.

The 341 First Meeting of Creditors

After a debtor has completed and filed all of the necessary paperwork for a Chapter 7 bankruptcy, the trustee will schedule a creditors meeting. At the meeting, the trustee will review the paperwork and gather any other necessary information. If a debtor fails to attend the meeting, the trustee may make a motion to dismiss the debtor’s case. Other reasons for dismissal by the trustee may include the debtor’s failure to provide a copy of income tax returns at least seven days before the creditors meeting or the failure to file a current income tax return.

In most cases, this creditors meeting is the only time the debtor will have to go to the courthouse.

If the trustee determines that you are in possession of nonexempt property, you may have to either give up the property or supply the trustee with money in the amount of the property’s value. Sometimes, though, if the property doesn’t have much value or would be too difficult for the trustee to sell, trustees will occasionally “abandon” the property, essentially allowing you to keep it despite the fact that it is nonexempt.

Getting a Discharge of Debt in Chapter 7

A few months after the creditors meeting, the bankruptcy court will hold a discharge hearing. A debtor’s unsecured debt, debt that is unsecured by property, is discharged. Secured debt, such as a car loan or a mortgage, receives different treatment. At the beginning of the bankruptcy process, the debtor selected to do one of the following: pay the creditor for the replacement value of the property, return the property to the creditor, or “reaffirm” or agree to new contract terms with the creditor.

Under Chapter 7 bankruptcy rules, the debtor must repay some debt. The following debt remains after a bankruptcy discharge:

  • Child support
  • Tax debt, unless a debtor meets the criteria to discharge federal tax debt
  • Student loans, unless a bankruptcy court determines that undue hardship exists
  • Debt created by fraudulent means

Once a discharge of debt occurs, the creditor can no longer attempt to collect the expunged debt.

Generally speaking, creditors would rather work out a viable payment plan with their debtors than initiate legal action, which not only costs money, but can prolong the collections process. Nevertheless, it is possible to be sued for debt, especially if you fail to communicate with your creditor and miss multiple payments. You may be sued by a creditor even if you have offered to make small payments on your balance, but creditors typically do not sue debtors who are at least making a good faith effort to repay a debt.

What Should you Do If You’ve Been Sued?

Usually, the first indication that you are being sued comes when a constable or a process server hands you a summons and a complaint. The complaint describes the nature and dollar amount of the claims against you for unpaid debt, while the summons is a written notification that you are required to appear in court on a given date if you wish to defend yourself against the claim. If you simply ignore the complaint by not replying with a formal answer, your inaction may result in a default judgment against you.

We always advise people to speak with a lawyer right away and have them review the summons and complaint before you do anything else.

So, if you wish to defend against a creditor’s legal claim against you — even if you agree with the claim, but would rather work out a settlement — you should generally answer the complaint.

You and/or the cosigner of your loan or account will be listed as the defendant(s). The complaint will describe why the creditor is suing and how much money it is seeking in damages (typically the amount owed, plus interest and any applicable penalties). You will have about 20 days to answer the complaint, depending on the state in which the claim was filed. You may have to pay a filing fee to the court when submitting your answer to the complaint, but low income defendants may qualify for a waiver.

Whatever you don, don’t go it alone.  It’s like doing brain surgery on yourself.  The outcome will not likely be very good.

Your answer typically will include an admission or denial of the claim, any legal defenses, potential counterclaims, and your signature. If you have income that is exempt from garnishment, such as Social Security payments, it may be included in the answer, as well.

Defenses to a Lawsuit

If you plan to defend a claim against you, an attorney can help you decide which defenses make the most sense. Since many consumer contracts include a provision for settling disputes through arbitration, the lawsuit may not even be valid. Also, the claim must be filed within the statute of limitations in your state (usually two or three years, but as long as six years in some states). Additionally, some states have different statutes of limitations for debt-related lawsuits.

A creditor suing you for an unpaid debt also must be able to document ownership of the debt. Creditors frequently sell debts to other entities, which are then considered “debt collectors” for legal purposes. They must be able to produce documentation of the debt in order to sue you, a requirement that does not apply to the original creditor. Therefore, you should request verification of the debt in writing once you are contacted by a debt collector (which may be another financial institution). If it cannot provide written verification, it may not collect from you.

Also, creditors are required by law to attach a copy of the account or written contract to the complaint, or else explain in the complaint why it is not attached. If the creditor or collector cannot produce the proper documentation, you may ask the court to dismiss the lawsuit.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506
Ascent Law LLC

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Draper, Utah

From Wikipedia, the free encyclopedia
 
Draper, Utah
Draper Historic Park

Draper Historic Park
Location in Salt Lake County and the state of Utah.

Location in Salt Lake County and the state of Utah.
Coordinates: 40°30′53″N 111°52′23″WCoordinates40°30′53″N 111°52′23″W
Country United States
State Utah
Counties Salt LakeUtah
Settled 1849
Incorporated 1978[1]
Founded by Ebenezer Brown and his wife Phebe DRAPER Palmer Brown
Named for William Draper, Jr.
Government

 
 • Mayor Troy K. Walker
Area

 • Total 29.96 sq mi (77.61 km2)
 • Land 29.95 sq mi (77.57 km2)
 • Water 0.01 sq mi (0.04 km2)
Elevation

 
4,505 ft (1,373 m)
Population

 (2020)
 • Total 51,017
 • Density 1,700/sq mi (660/km2)
Time zone UTC−7 (Mountain (MST))
 • Summer (DST) UTC−6 (MDT)
ZIP code
84020
Area code(s) 385, 801
FIPS code 49-20120
GNIS feature ID 1427473
Website www.draperutah.gov

Draper is a city in Salt Lake and Utah counties in the U.S. state of Utah, about 20 miles (32 km) south of Salt Lake City along the Wasatch Front. As of the 2020 census, the population is 51,017, up from 7,143 in 1990.[3]

Draper is part of two metropolitan areas; the Salt Lake County portion is in the Salt Lake City metropolitan area, while the Utah County portion is in the Provo-Orem metropolitan area.

The Utah State Prison is in Draper, near Point of the Mountain, alongside Interstate 15Gary Gilmore‘s execution occurred on 17 January 1977. The Utah Legislature voted to relocate the state prison to Draper in 2014 and in 2015 approved the Salt Lake City location the prison relocation commission recommended. The Draper Prison will close in 2022. Inmates will be moved to a new prison facility in Salt Lake City; the new prison is slated for completion in mid-2022.[4]

Draper has two UTA TRAX stations (Draper Town Center, 12300/12400 South and Kimball’s Lane 11800 South) as well as one on the border with Sandy (Crescent View 11400 South). A FrontRunner commuter rail station serves the city’s west side. The city has around 5 FLEX bus routes connecting neighboring communities and two bus routes to Lehi Frontrunner Station and River/Herriman, connecting at Draper Town Center and the Draper Frontrunner Stations.

The city is home of 1-800 Contacts and a large eBay campus.

Draper, Utah

About Draper, Utah

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Reviews for Ascent Law LLC Draper, Utah

Ascent Law LLC Reviews

John Logan

starstarstarstarstar (5)

We've gotten divorce and child custody work from Ascent Law since the beginning because of my ex. We love this divorce firm! Staff is gentle, friendly and skilled. Tanya knows her stuff. Nicole is good and Ryan is fun. Really, all the staff here are careful, kind and flexible. They always answer all my questions, explain what they're doing and provide great legal services. I personally think they are the best for divorce in Utah.

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Jacqueline Hunting

starstarstarstarstar (5)

I have had an excellent experience with Ascent Law, Michael Reed is an absolutely incredible attorney. He is 100% honest and straight forward through the entire legal process of things, he also has a wonderful approach to helping better understand certain agreements, rights, and legal standing of matters, to where it was easy to know whats going on the entire process. I appreciate the competency, genuine effort put forth, and assistance I received from Ascent and attorney Michael Reed, and I will be calling these guys if ever I have the need again for their legal assistance! 5star review Wonderful attorneys!

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Anthony Ziegler

starstarstarstarstar (5)

This review is well deserved for Ryan and Josh. New clients should know they are worth the 5 star rating we give them. We needed 2 sessions from them because of the complexity of the matter, but they are both very passionate about his helping others in need.  My sister needed bankruptcy and I needed divorce.  Sometimes they go hand in hand but a large shout out to this team - also Nicole is one of the sweetest people you ever did meet - she offered me warm cookies!

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Thomas Parkin

starstarstarstarstar (5)

Mike Anderson and his colleagues & staff are knowledgeable, attentive and caring. In a difficult and complex case that eventually went to trial, Mike was the voice of reason and the confidence I needed. His courtroom abilities are amazing and I felt his defense of me was incredible. His quick thinking and expertise allowed for a positive result when I felt the World was crumbling. His compassion, after the case, has helped me return to a good life. I trust Mike and his staff. They are friendly and very good at what they do.

Ascent Law LLC Reviews

Yeran Merry

starstarstarstarstar (5)

I worked with Attorney Alex and Paralegal Ami in my divorce case. I got to know the team very well over the course of two years. I cannot think of a better team to have worked with. Ami and Alex are not only exceptional law professions who are very knowledgeable and thorough, they are also the best human beings who empathize with the emotions I was experiencing. Alex was conscious of my budget and worked efficiently to try to reduce unnecessary legal expenses. My case also involved some dealings with a foreign country that Alex and his team had previously dealt with.  They did an amazing job addressing cultural barriers in a very respectful manner and did not fall short in quality of work or in standards when dealing with some of these new challenges. Ami deserves a medal for being extremely professional, calming, and compassionate when it is needed most.  When you need family law attorneys, call this firm. I now feel I can move forward with grace and dignity.

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About the Author

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.