My Credit Card Company Is Suing Me

You’ve received a summons and complaint, your credit card company has filed a lawsuit. What to do now? Should you file for bankruptcy?

My Credit Card Company Is Suing Me

First, understand that credit card debt is a type of unsecured debt, meaning that if you can’t make payments, your credit card company cannot come after your personal property right away. In order to come after your assets, they must first sue and obtain a judgment, which is a court document stating a valid debt is owed and which gives the creditor the right to pursue assets of the debtor to satisfy it.

The extent to which a judgment creditor can pursue a consumer is a function of state law, with each state granting creditors slightly different options for pursuing judgments. Read on for what happens if a credit card company sues you, and how bankruptcy and debt settlement options may help.

When a Credit Card Company Sues You, They Want a Judgment

Why is my credit card company suing me? Because they want a judgment.

If the debt owed is valid (which it usually is), it is likely that the credit card company will be able to obtain a judgment for the full amount that is past due — although there are credit card lawsuit defenses that can be raised.

This is not because the credit card companies have a team of star litigators on the payroll. No, it’s because debtors usually do nothing when faced with a lawsuit. It is a rare debtor that will file an answer to a complaint to dispute even a valid debt. This allows the credit card company to win the lawsuit by default.

Why is this important?

As mentioned above, the judgment is the court’s determination that the debt is due. In most states, obtaining this validation of the debt from the court system is a condition that must be met before the credit card company can attempt to change its position from unsecured creditor to secured creditor. In other words, they sue to obtain a judgment, which allows them to come after your property or income in satisfaction of the debt.

The judgment will be recorded in the county where you live. From there, the credit card company can go forward with a bank levy or wage garnishment. Your credit card company may even put a lien on your real estate.

What will bankruptcy do in a credit card lawsuit?

Bankruptcy (either Chapter 7 or Chapter 13) puts a stop to any collection proceedings, including lawsuits, through the power of the automatic stay. Your creditors will be notified of the stay, so any wage garnishments or foreclosure actions also will stop.

Filing for Chapter 7 bankruptcy also can eliminate the personal liability associated with the judgment, which will clear your obligation to pay the debts. However, be aware that once a judgment attaches as a lien on your property, it will be harder to get rid of. For this reason, it is not a good idea to wait too long to act once a collections proceeding has been initiated against you.

You will not be able to sell the property until the lien is paid or removed, and in some cases, the creditor may sell the property to pay the lien. If the property is exempt (e.g., your house or car), that lien can be removed pursuant to 11 U.S.C. Sec. 522(f).

This is not part of the ordinary bankruptcy procedure. While your bankruptcy is open, you must request your attorney to file a Complaint to Avoid Lien, such as this example in Utah; there is typically an extra charge for such an action.

Should I do debt settlement or bankruptcy?

In some cases, being sued by a credit card company can be a positive thing as you or your attorney can call the firm on the other side of the suit and negotiate a large reduction in the balance you owe. Often, debt settlement negotiation can help the debtor avoid bankruptcy as well as an unpleasant judgment.

However, debt settlement is an industry wrought with scams. Most companies require you go further in default while saving up to pay off creditors. While you save, creditors can take action. There also may be tax consequences associated with debt settlement.

The bottom line is this: if you’ve been sued by a credit card company, call an attorney right away to explore your options. Ignoring the lawsuit will only play into the hands of your creditors — which is exactly what the credit card company is banking on.

Free Consultation with Utah Bankruptcy Lawyers

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

4.9 stars – based on 67 reviews

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Can Credit Card Companies Take Your House?

Credit card debt, unlike mortgage debt, is unsecured debt. This means your credit card company can’t come immediately take your stuff — including your home or car — when you don’t pay.

Having said that, if you fall behind on credit cards, your lender will quickly try to transition from an unsecured creditor, who can’t take your stuff, to a secured creditor who can. The goal of credit card lawsuits is to strengthen the lender’s collection position. Once an unsecured creditor obtains a judgment, they can then attach your non-exempt property in satisfaction of past-due debts. Let’s break down each step in the process.

Can Credit Card Companies Take Your House

You fall behind on credit card bills. Now what?

First, you fall behind on your credit card bills. No lender is going to sue you after a few missed payments, but they’ll definitely start calling. If the collection calls don’t work, there is a decent chance that the credit card company or a debt collector will eventually file a lawsuit. A debt collector is a person or business whose primary purpose is to collect debts, and include collection law firms. As original creditors, a bank or credit card company’s primary purpose is not to collect debt, and so are not regulated under the same federal law.

Your debt collector files a lawsuit against you.

You’ll receive a summons and complaint when a credit card company files a lawsuit against you. Of course, you have the option of defending against the lawsuit if you don’t actually owe the debt or if you have some other defense against payment. Don’t necessarily take it for granted that you owe. Some collectors will try to illegally resurrect zombie debt. If you owe the debt and don’t file an answer to the lawsuit, and most people don’t, the court will enter what is known as a default judgment. The judgment is a court decree stating you owe the debt and that the credit card company has the right to take some of your assets to satisfy it. Now they have the right to come after your stuff, but exactly what can they take?

Your debt collector comes after your stuff.

What a debt collector can take will depend on your state’s exemption laws. If you need a quick and dirty summary, it’s best to think of exemptions as laws that shield your property from creditors, both inside and outside of bankruptcy.

Generally speaking, each state has enacted its own exemption laws and a good consumer lawyer in your state will be happy to walk you through how they work.

How do property exemptions work?

Need an example? Let’s look at Texas. Assuming the property meets certain criteria, the Texas homestead exemption allows residents to exempt the entire value of their home from creditors. This means that, no matter how much you owe, you won’t lose your house because of debt in Texas. The Texas homestead exemption is generous.

Perhaps another state has a car exemption that allows you to protect up to $4,500 in a single car. If you have equity in your car above that, a judgment creditor may be able to sell it to get at the non-exempt equity. As a practical matter, there are costs associated with selling property at auction and creditors are often willing to settle for cash rather than go through with the sale.

Filing for bankruptcy will stop a lawsuit.

Well, there you have it. Whether a credit card company can take your stuff after non-payment depends on whether they’ve obtained a judgment by filing a lawsuit and the size of your state’s property exemptions.

If you are facing a credit card lawsuit, it’s always best to call a lawyer. Also be aware that filing for bankruptcy will eliminate your credit card debt and stop a lawsuit, even if it’s already been filed.

Free Consultation with a Utah 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

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If I File Bankruptcy, Do I have to Go to Court?

For most people, lawyers and lawsuits conjure up images of wood-paneled courtrooms with scary judges presiding over heated exchanges. “ORDER IN THE COURT! OBJECTION, YOUR HONOR!” Many bankruptcy clients are concerned that a judge will be reviewing and second-guessing their petition.

If I File Bankruptcy Do I have to Go to Court

This concern is usually unwarranted. In the vast majority of cases, debtors never step foot in a courtroom and do not appear before a judge.

Here’s what you need to know about filing for bankruptcy and what will be expected of you.

The 341 Meeting of Creditors

Debtors are required to attend what is known as the meeting of creditors or section 341 meeting, a proceeding at which the debtor testifies under oath that the information contained in their bankruptcy filing is accurate.

In many jurisdictions, the 341 meeting doesn’t even take place in the courthouse. It might be across the street or nearby the federal court. Your bankruptcy trustee (not a judge) will preside over the meeting of creditors, but don’t worry, your bankruptcy attorney will be there to guide you through the process.

In most Chapter 7 cases, the 341 meeting is fairly painless and only lasts between 3 to 10 minutes. During that time, the trustee will ask you a series of questions about your property, debts, and financial history. Some debtors will receive very few questions; others with more complicated cases may receive more.

The key to success is being open and honest with your lawyer.

Here are five things to expect during your 341 meeting:

  1. Your attorney will attend the meeting with you, whether you filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy;
  2. During the meeting, assets will be administered in a Chapter 7, and your disposable income will be verified in a Chapter 13 repayment plan;
  3. You’ll have to swear in. That means your testimony is under oath; you cannot lie, otherwise you will face severe consequences (least of which is having your bankruptcy denied);
  4. You’ll be asked if all of your financial documents are in order and accurate;
  5. In most Chapter 7 cases, no assets will be found. In Chapter 13 cases, you may be asked for additional verification of your income or expenses.

And that’s it!

When a Bankruptcy Court Appearance is Required

Although the likelihood of a court appearance is low, debtors must realize that filing for bankruptcy is more than just filling out some forms. A bankruptcy case can turn to litigation fairly quickly. Debtors may be required to appear in court when a trustee objects to one of their exemptions or the judge orders them to appear and show cause. In addition, an adversary proceeding will likely require a court appearance, as well.

Objections to Exemptions

When filing for bankruptcy, a debtor will state which of their property is exempt under bankruptcy laws. This allows the debtor to protect certain property, such as their house, car, retirement accounts, and more. However, debtors must carefully follow exemption rules in their state; in some states, you can choose between federal exemptions or state exemptions, while others only allow you to use state rules. Some states have better exemptions than others. A bankruptcy attorney will thoroughly review exemptions with you to determine which property you will be able to keep. The majority of Chapter 7 cases, if debtors qualify, will allow them to keep all their property.

Show Cause Order

A show cause order is typically used in cases of contempt, in which debtors can go to jail. Essentially, it’s used on either difficult debtors who have lied to the court, or debtors who simply forgot a step during their bankruptcy (failing to disclose assets, not providing documents to the bankruptcy trustee, etc.), who then have to show the court why their bankruptcy discharge should not be denied. While some debtors who have been given a show cause order have actually been honest, they may not have done their paperwork correctly. This happens often in pro se cases, in which a debtor tries to file bankruptcy themselves. This is when a good bankruptcy attorney needs to step in.

Adversary Proceedings

Adversary proceedings are lawsuits filed separate from your bankruptcy case, though it’s related. An adversary proceeding can be filed by anyone in a bankruptcy, including the debtor, when someone requires relief through a judge’s order.

Types of adversary proceedings include:

  • Fraudulent transfers: Bankruptcy trustees will file these if you’ve moved around any money or property in the two years leading up to your bankruptcy.
  • Preferential transfers: Bankruptcy trustees will file these if you pay back creditors more than $600 in the three months leading up to your bankruptcy, or a year in the case of family members.
  • Lien stripping: Debtors will file these during a Chapter 13 bankruptcy if they have more than one mortgage on a house.
  • Dischargeability of debt: Creditors will file these to request a debt not be discharged due to fraud of the debtor.
  • Joint property sale: A trustee can file these to split property from you and your spouse in order to sell it.
  • Objection to discharge: Trustees and creditors can file these when you’ve committed fraud or failed to comply with court order.

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

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4.9 stars – based on 67 reviews

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How to Pay Off High Interest Credit Card Debt

Perhaps like many Americans your New Year’s resolution involves paying down credit card debt. After all, even the most ardent supporter of the plastic hears that little voice in the back of their head “credit card interest rates are a huge ripoff, I shouldn’t use my Visa card as much as I do.” To be sure, if you’re trying to get your financial life in order, taming high interest credit card debt is job number one. Unfortunately, many consumers get caught in the minimum monthly payment trap, leaving stagnant balances that seem to never go away. So how do you go about paying down credit card debt and getting rid of Mr. Visa once and for all?

How to Pay Off High Interest Credit Card Debt

Damage Assessment

The first step to paying off your credit card debt is to figure out the exact amount that you currently owe. It’s not until you have exact balances and the interest rates you’re being charged that you’ll know how high of a mountain you’re faced with climbing. In addition to outstanding balances, add up the monthly payment for each card and figure out how much of your income is going to credit card payments every month. Organization is key. We’ve created a simple chart to help you organize what you owe.

Break Your Dependence on Credit Cards

In other words, stop using the credit cards! The idea in starting a plan to pay down credit card debt is to attack the principal balances rather than just paying interest every month. The credit card companies want you stuck in debt, feeding them their interest every month. The only way to stop interest from increasing is to stop the balances from increasing. Put together a budget and stick to it, without using your credit cards. Often, aggressive budgeting is the fastest way out of debt. It might hurt at first, but the sense of satisfaction you’ll receive from paying off your credit card debt will far outweigh any temporary inconvenience. If you absolutely need credit cards to live, it might be time to consider filing for bankruptcy.

Pay Off One of the Cards

To gain momentum in your quest out of credit card debt, pay off the smallest card first. Completely retire one of the balances, it feels good. Some will argue that tackling the highest balances first makes sense, but momentum will play a big role in getting you out of credit card debt. Get rid of the smallest card and the rest will start to fall in line.

Pay More Than the Minimum Monthly Payment

Salt Lake City bankruptcy attorney wrote an excellent post on the National Bankruptcy Forum describing the major problems consumers face when they try to pay just the minimum on a credit card. He listed a table showing how long it takes to pay off small debts at low interest rates which we’ve included here:

$1000 balance, 18% interest, minimum payment $100 = 11 months to payoff $1000 balance, 18% interest, minimum payment $50 = 24 months to payoff $2000 balance, 18% interest, minimum payment $100 = 24 months to payoff $2000 balance, 18% interest, minimum payment $50 = 62 months to payoff $3000 balance, 18% interest, minimum payment $150 = 24 months to payoff $3000 balance, 18% interest, minimum payment $100 = 40 months to payoff $4000 balance, 18% interest, minimum payment $200 = 24 months to payoff $4000 balance, 18% interest, minimum payment $150 = 34 months to payoff $5000 balance, 18% interest, minimum payment $200 = 32 months to payoff $5000 balance, 18% interest, minimum payment $150 = 47 months to payoff $5000 balance, 18% interest, minimum payment $100 = 93 months to payoff

As John points out in his article, these figures don’t even factor in administrative or late fees which can add up quickly! The bottom line is that minimum monthly payments on credit cards usually represent interest only, the underlying balances aren’t touched by making these payments. To actually get out of credit card debt it will be crucial to pay more than the minimum monthly payment, there’s simply no other way.

Transfer Debt to Lower Interest Cards

As the table above demonstrates, the credit card companies kill you with high interest rates. As we’ve established, if you’re trying to get out of debt, paying the minimum won’t do. Instead, try transferring balances from one lower interest card to another, and keep doing it as opportunities arise. Many banks offer promotional “teaser” rates to induce consumers to open a line of credit. If you pay enough attention to deadlines, you can move your credit card balances around to banks offering the lowest rate, this will cut down on some of the money you’re throwing away on interest.

Negotiate With The Bank

Many lenders are open to settling past-due credit card bills for less than the full amount owed and a good consumer attorney can aid in negotiating with your credit card lender as a way to avoid bankruptcy. How is this possible? Once a loan goes into default for long enough, lenders no longer carry it on their books as a performing asset. In cases where a consumer has fallen behind for many months, recovering anything at all may be considered gravy by the credit card lender. This doesn’t mean your lender will be a push over, they’ll likely ask that you produce financial information as part of the negotiation process, but to the extent you have some cash to throw at the problem, you might be able to get out of debt for far less than what you owe. In these cases, the amount of debt forgiven will be taxed as income come April. For more information, see: Tax Consequences of Forgiven Debt.

Know When to Look for Help

If you fallen behind on your credit card bills or need credit cards to purchase basic necessities such as groceries and gas, it may be wise to meet with a bankruptcy attorney. Although options outside of bankruptcy should always be explored, filing for bankruptcy protection will eliminate credit card debt as well as medical bills.

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

4.9 stars – based on 67 reviews

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If you find yourself in a situation where you are faced with an impending legal action in Salt Lake City, Utah; you should call the lawyers at Ascent Law right away for help. We will provide you with sound legal advice that will help guide your actions going forward.

We help people in many different types of cases. Bankruptcy, Probate, Business law, Criminal law, Real Estate, Divorce, Car Accidents, Slip and Falls, IRS tax issues, Contracts and litigation.

Even whеn уоu dесidе tо buу оr ѕеll a hоuѕе, уоu mау have ԛuеѕtiоnѕ rеgаrding legal iѕѕuеѕ. Sоmеtimеѕ it’ѕ a gооd idеа tо hаvе аn аttоrnеу рrеѕеnt for the ѕigning оf certain dосumеntѕ. Sоmеtimеѕ уоu mау just nееd ѕоmеоnе likе an attorney lооk оvеr еvеrуthing аnd make ѕurе that there aren’t any lеgаlitiеѕ thаt аrе bеing оvеrlооkеd.

Yоu mау get аdviсе from a lоt a реорlе during thе hоmе buуing оr selling рrосеѕѕ. Mortgage brоkеrѕ, rеаltоrѕ аnd employees оf the title соmраnу might аll lеt уоu knоw what уоu nееd tо dо nеxt. But, keep in mind thаt nоnе оf thеѕе реорlе аrе actually qualified to givе you lеgаl аdviсе. Onlу an аttоrnеу is qualified to givе legal аdviсе. One piece of аdviсе уоu саn gеt frоm уоur brоkеr or rеаltоr iѕ an аttоrnеу rеfеrrаl. Yоu should lооk fоr аn аttоrnеу in уоur area that ѕресiаlizеѕ in real еѕtаtе lаw. If you’re lucky, you саn find аn attorney whо iѕ also a real еѕtаtе brоkеr or аgеnt. Pеорlе likе this generally kеер up with thе сhаnging laws аnd systems thаt are in рlасе tо еnѕurе that the real estate ѕаlе iѕ fair оn both sides.

Whеn уоu get уоur liѕt оf аttоrnеуѕ, call еасh оnе. Ask аnу questions that you might have and gаugе who уоu likе based on hоw thеу аnѕwеr уоur ԛuеѕtiоnѕ. Thеу probably wоn’t ѕресifiсаllу givе уоu аnѕwеrѕ, but thеу’ll bе able to tell you whаt they can dо fоr you. Aѕk hоw muсh еасh сhаrgеѕ hоurlу. Then, еxрlаin уоur ѕituаtiоn аnd whаt all уоu nееd dоnе. Get аn estimate оf hоw long аll оf thiѕ will tаkе tо gеt an idea of thе соѕt. Sоmе will сhаrgе оnе flаt fее to dо еvеrуthing that you need rеgаrding thе buying оr selling of thе property.

Sо, whаt аrе ѕоmе рrоblеmѕ thаt уоu might run into аѕ a buyer оr ѕеllеr? Thеrе are a lot оf legal dосumеntѕ tо sign during thе negotiation рhаѕе оf buуing or ѕеlling a рrореrtу. Whеn уоu’rе selling, you usually will ѕign аn аgrееmеnt with thе rеаltоr аnd thе mortgage brоkеr. Sometimes thеу will use a ѕtаndаrdizеd fоrm thаt doesn’t take into account аnу ѕресiаl circumstances. Thеу may hаvе it set uр ѕо that thеу gеt раid regardless оf whаt happens in thе рrосеѕѕ. If уоu tаkе уоur property оff оf the market оr decide to сhаngе companies, you соuld end uр ѕtill paying thе оriginаl brоkеr оr agent. Yоu соuld gеt ѕtuсk paying thеm more thаn оnе соmmiѕѕiоn оr рауing it whеn thе рrореrtу dоеѕn’t sell.

Thе bоttоm linе iѕ thаt a lоt can go wrоng fоr уоu whеn buуing or ѕеlling аnd it’ѕ bеѕt tо hаvе lеgаl representation whеn dеаling with thеѕе рrоblеmѕ thаt can рор up. You’ll need аdviсе аlоng thе way, ѕо it’ѕ рrоbаblу bеѕt tо mаkе thаt аdviсе professional advice.

Free Consultation with a Utah Attorney

If you are here, you probably have a legal issue you need help with in Salt Lake, if so, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

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

Telephone: (801) 676-5506

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Bankruptcy is an extremely long and large topic. Impossible for us to outline all of the issues that can be addressed in a bankruptcy case, but this article can give you an overview and provide you with the resources that you need to find the information that you want and need. In this article, we will also provide you a list of some of the related articles about bankruptcy you will find on this website.



What is Bankruptcy?

Bankruptcy is the legal process of asking the federal bankruptcy court for a discharge of your debts. Bankruptcy law is federal law and is set forth in the United States Constitution in the fourth Clause of Section 8 it states that Congress shall have power:

“To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States”

Click Here to Read the United States Constitution

Yes, believe it or not, bankruptcy is a federal right that you have and can exercise by filing a petition for bankruptcy relief with the federal bankruptcy court.

What Areas In Utah Do Your Help People With Bankruptcy?

Currently, we are helping people and businesses all over the state of Utah with bankruptcy. We can help you in these locations:

Bankruptcy Lawyer Alpine Utah

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What are the chapters in Bankruptcy?

The chapters in bankruptcy are the bankruptcy code sections that are followed for the administration of your bankruptcy case. The chapters of bankruptcy are 7, 9, 11, 12, and 13.

Chapter 7

A chapter 7 bankruptcy is the most common bankruptcy case. This is also called a straight liquidation or a fresh start bankruptcy. In this case, all of your debts that can be discharged are eliminated and erased by a federal discharge order at the conclusion of your case. These cases usually take about 5 to 6 months to complete.

Chapter 9

A chapter 9 bankruptcy case is for cities and municipalities. Unless you are the mayor or governor, you don’t need to worry about this chapter so we won’t address it here.

Chapter 11

The chapter 11 bankruptcy case is typically called a business bankruptcy – but individuals can file until chapter 11 as well – it just is not very common because a chapter 11 case is very expensive to file and prosecute. Think of Sears, General Motors and Delta Airlines; all of whom have filed for chapter 11. Unless you have a business with over $2 million of dollars of value or debt, you need not worry about this chapter – if you do, give us a call to discuss your situation. We have done and do have some chapter 11 cases.

Chapter 12

The chapter 12 case is for people who farm or fish for a living. If you farm or have a fish hatchery, you qualify for a chapter 12 and we can go over the pros and cons of such a case when you meet with us.

Chapter 13

A chapter 13 bankruptcy is the second most common bankruptcy case. This is known as a wage earner’s reorganization. In a chapter 13 you make regular monthly payments to a trustee who will pay back some or all of your debts over a 3 to 5 year period. The chapter 13 must be a minimum of 3 years and a maximum of 5 years. There are some exceptions to whether you have to go for the full 3 to 5 years that we can discuss at another time, but keep in mind – you have to make monthly payments. If you can’t or don’t, you case is dismissed an you lose the benefit of filing your case.

Different Kinds of Debts in Bankruptcy

Bankruptcy courts look at debts a little differently than you might. In bankruptcy, you generally have three types of debt:

(1) secured debts;
(2) priority debts; and
(3) unsecured debts.

Secured Debts

Secured debts are debt that you owe to someone where there is collateral securing the loan. The best examples of this type of debt are a house and a car. Typically, when you purchase a car, truck or van, your lender gets what is called a purchase money security interest. This means they get a lien on your car until you pay the debt off. The lienholder information is written on the title to your car and the title is even held by the lender until the debt is paid. Once you pay off the debt, the lender certifies on the title that the loan has been paid in full.

If you file for a chapter 7 case, you have essentially 3 options: (1) you can keep the collateral and pay the secured debt; or (2) you need to surrender or give up the collateral and the debt can be discharged; or (3) you can offer to redeem the collateral or in other words pay the lender the fair market value of the collateral and keep it.

Priority Debts

Priority debts are child support, alimony, court ordered payments, taxes to the IRS or Utah State Tax commission. Typically these debts are not discharged – although some can be depending on the court order, type of debt and your specific circumstances – call us to discuss your priority debts.

Unsecured Debts

Unsecured debts are credit cards, orthodontic bills, dental bills, clothing store bills, medical bills, and other debts that are not secured by collateral and have no priority.

Will Bankruptcy get rid of my debt?

Bankruptcy only gets rid of some debts. Depending on the types of debt that you have, you may be able to get rid of all of your debts. If all of your debts are unsecured, you are good to go. If you owe student loans, child support or alimony, you can get other debts discharged but not those priority debts. The question of taxes is a tricky one. We recommend that you speak with a licensed attorney to go over these questions in detail to determine whether or not you can erase a certain debt.

Bankruptcy Can Be Complicated

In conclusion, bankruptcy is a vast topic and it can be very complicated. For hundreds of years, bankruptcy courts have made decisions and have made case law that is followed. Because the federal bankruptcy code is complex, you should have an attorney assist you in filing for bankruptcy in Utah. A qualified bankruptcy lawyer from our firm will be able to guide you to file the right chapter for you so you don’t lose your cars, your home or your other assets.

Additional Bankruptcy Articles

This is an article on tax refunds in bankruptcy.

This is an aticle about child support garnishment and how they are treated in bankruptcy cases.

Can I List My Speeding Ticket in Bankruptcy?

Can You Make The Doctor See Me Again After Bankruptcy? This and many more questions are answered on out site.

Free Bankruptcy Consultation

We offer a free initial consultation for individuals and businesses considering filing for bankruptcy. Even if you’re not sure, a consultation will help put you on the path to prepare for a bankruptcy if you need to in the future or get you on a different debt elimination plan that will work best for you in your specific situation.

Call us today at (801) 676-5506 to schedule your free, no hassle, no obligation, initial bankruptcy consultation with a licensed attorney at Ascent Law, LLC. We look forward to meeting you and helping you.

Michael R. Anderson, JD

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

Telephone: (801) 676-5506

Additional Bankruptcy Resources

Utah Bankruptcy Attorneys

How to File for Bankruptcy in Utah

Bankruptcy FAQs (Videos)

How do I know when filing for bankruptcy is a good idea?

Michael R. Anderson – Utah Bankruptcy Attorney

Ascent Law St. George Utah Office

Ascent Law Ogden Utah Office