Bankruptcy is a common phenomenon
It is known to all of us that the bankruptcy is a very common phenomenon and
perhaps there is no state in any country where the bankruptcy
cases are not filed. It is to be noted here that the bankruptcy
is a process by which a person, firm, company etc files a petition
in the court that it is not able to repay the different funds
borrowed by it from the various sources and hence, it should
be declared as bankrupt.
The word insolvent is the synonym of bankrupt. There are many
reasons for which a company etc has to declare itself bankrupt.
Since the different companies having operations in the different
states of the different countries are prone to the same reasons,
one finds companiesf declaring themselves bankrupt in all the
parts of the world.
The Utah in the United States is no exception to this and bankruptcy cases are encountered in this part of the world also. It is also to be noted here that in order to declare itself bankrupt, a person, company etc has to file a petition in the bankruptcy court and it can declare bankrupt only after that. Let us discuss the bankruptcy in Utah.
Bankruptcy in Utah
There are many cases of bankruptcy that are registered in the court in Utah. As there are bankruptcy courts in other parts of the United States, one finds the bankruptcy court in Utah also. This court is called as the Utah Bankruptcy District Court. If any company, person etc has to declare itself bankrupt, it has to file his application in this court. The Utah bankruptcy court is situated in the Ogden, Salt Lake City. This court has its jurisdiction over all the counties of Utah. If a person wishes to contact this court, he can easily do that at 361 U.S Courthouse, 350 South Main Street, Salt Lake City Utah 84101. One finds judges as well as other person in the clerical cadre at this address. Now the question that arises here is that what are the various rules and laws that are applicable in Utah as far as bankruptcy is concerned. Let us discuss these all in our next part of discussion.
Laws of Bankruptcy in Utah
First of all, it should be understood by a person that the bankruptcy can be avoided if the payments are being for the minimum amount of bills, debts are being repaid regularly as per the decided program and there is appropriate support to sustain any severe financial setback. However, if it not possible to avoid bankruptcy, a person has to still pay for the alimony, child support, recent back taxes etc even after the bankruptcy is declared.
A person living in Utah can file the application for the bankruptcy under either of the following chapters:
The first chapter under which a person can file the bankruptcy is the chapter 7. This is also known as the straight bankruptcy chapter. Under this chapter, a person or a company has to pay for all the debts raised by it except those ones that are listed and has to start again.
The other chapter under which a person can file for the bankruptcy in Utah is the chapter 7. This type of bankruptcy is also called as the Wage Earner Bankruptcy. Under this type of bankruptcy, a person has to option to repay all the debts raised by it over the several years by means of a repayment plan. Thus, there is no need for a fresh start up plan in this type of chapter.
Discussed above are the two types of chapters under which a person can file for the bankruptcy.
The president paved way for the new law on April 20,2005. This law is known as the Bankruptcy Abuse Prevention and Consumer Protection Act. This law deals with the access of the individuals to the various bankruptcy courts in the United States. There are of course some changes that have been made in the existing laws related to the bankruptcy by passing this law. These changes relate to the various bans in the chapter 7, the payments of the chapter 13 which have been increased in the new law, presumptions against debtors that includes the penalties also, the deduction in the judicial discretions and the time period between the subsequent discharges.
This law has been made effective with effect from October 17, 2005. As far as the changes in the bankruptcy code are concerned, these will be effected either upon the enactment of the law or it may be from retrospective effect.
The chapter 7 of the bankruptcy in Utah is known as the liquidation chapter.
This is perhaps the
simplest and the quickest form of bankruptcy that is available
to a person living in Utah. It is convenient for corporations
and partnership firms also. Under this chapter, a trustee who
is appointed by the court takes charge of all the property and
sells it. The proceeds are used to pay the different creditors
of the bankrupt firm, person etc. When a person or a company
fills the bankruptcy form, he should provide all the information
about the various creditors and their claims as on date.
An individual or the sole proprietor can file application for the bankruptcy in Utah under the chapter 13 of bankruptcy. The time period normally allowed to pay all the dues of the various creditors is three to five years. Thus, under this chapter, the debts can be wiped off slowly. Generally the people in Utah who file application for the bankruptcy under this law have mortgages, taxes and the moral convictions, that have to be wiped off slowly and this is the reason why they go for the bankruptcy under chapter 13.
Any person, who is living in Utah and files application for the bankruptcy, can keep the following things with him, as per the bankruptcy law:
Homestead- it can be the mobile home and the area that surrounds it. But it should not exceed $20,000.
The proceeds of the sale of homestead of the same value as mentioned above.
Various household items like refrigerator, freezer, oven, sewing machine, and carpets. It also includes the 12 months family provisions of clothing, beds, bedding etc.
Health aids, disability or unemployment benefits.
Child support and the veteran benefits.
The proceeds of the personal injury or the wrongful death
Burial plots and the health aids.
All these can be kept easily by any person who has file for bankruptcy
Utah has the required laws:
So, it can be rightly said that the state of Utah has all the required laws
as far as the bankruptcy is concerned. There are two chapters
under which the bankruptcy can be filed in Utah. I think the
article would definitely prove useful to all those persons,
companies that are there in Utah and wishes to go for the bankruptcy
in near future.
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