Those filing a Chapter 7 bankruptcy case in Utah must complete the means test as one measure used to determine eligibility to file a Utah Chapter 7 bankruptcy case.  In a Chapter 13 case, the means test can determine how much you will have to pay the bankruptcy trustee each month for the 36 to 60 month life of your Chapter 13 plan.  The means test uses data from the Census Bureau and the Internal Revenue Service to determine, for example, the median income for Utah.  The United States Trustee's Office has published revised Census Bureau and IRS data effective for cases filed on or after November 1, 2011.

Some of the data remained unchanged from the update on March 15, 2011.  Figures for national living allowances such as food, clothing, housekeeping, and personal care expenses remain unchanged as are figures for health care and transportation expenses.  However, significant changes update figures for median income standards and local housing standards.  For example, under the median income figures for cases filed between March 15, 2011 and October 31, 2011, a one person household would be eligible to file Chapter 7 if yearly income was less than $50,635.  Under the revised data for cases filed on or after November 1, 2011, the figure is $48,176.

We have revised both our basic and advanced means test calculators to use the updated figures.

Utah bankruptcy attorney Russell B. Weekes can make sure your means test is calculated correctly to determine eligibility to file Chapter 7 bankruptcy or to calculate the appropriate Chapter 13 plan payment.  Fill out our form or call 801.203.3525 to schedule your free initial consultation.  We help people all over Utah get a fresh start through bankruptcy.  Consultations are available in office and by phone.  

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The cost of filing bankruptcy just got more expensive, but not by much.  On September 13, 2011, the Judicial Conference of the United States voted to increase the following fees for bankruptcy cases:

Filing Fees:
Chapter 7: from $299 to $306
Chapter 13: from $274 to $281
Chapter 11: from $1039 to $1046

Document Amendment Fee: from $26 to $30
Lift/Stay Fee: from $150 to $176

The conference also voted to increase several other fees.  The fees were enacted in response to inflation and will increase the judiciary's budget. 

The new fees for bankruptcy cases take effect on November 1, 2011.

Salt Lake City bankruptcy attorney Russell B. Weekes can help you make sure your bankruptcy case is handled accurately and as quickly as possible.  Fill out our form or call 801.203.3525 to schedule your free initial consultation.  We help people all over Utah get a fresh start through bankruptcy.  Consultations are available in office and by phone.

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Let's say you have received a lender from your bank informing you that the bank has received a court order to garnish your bank account.  The letter indicates you have a right to dispute the garnishment.  Generally, under Utah law you will have twenty days from the time you get the documents from the bank until the time the bank garnishes your account.  During those 20 days you have a couple of options. 

Option 1 - Complete the Exemption Form.  Included in the paperwork from the bank is an exemption form.  Utah law provides Utah exemptions that protect certain of your property from being collected by creditors to pay debts.  If property is exempt under a provision of Utah or sometimes federal law then the creditor is prohibited from collecting or taking that property to satisfy the debt it is owed.  On the exemption form you can claim exemptions to prevent completely or partially the garnishment of your bank account.   For example, if you can prove that the funds in the bank account derive from wages then you can claim a 75 percent exemption under Utah Code § 70C-7-103.  If you can prove that the funds derive from social security then you can claim a 100 percent exemption under federal law and under Utah law. 

Option 2 - Request a Hearing.  You also have a right under the Utah Rules of Civil Procedure to make a reply to the writ of garnishment and request a court hearing.  The paperwork to do so should have been included with the paperwork you received from your bank.  This may be advisable in certain circumstances and you should seek the advice of an attorney if you desire to request a hearing. 

Option 3 - File Bankruptcy.  Filing bankruptcy can prevent the need to do any of the above because once a bankruptcy case is filed the automatic stay immediately goes into effect.  The stay is "automatic" because it goes into effect automatically as soon as a bankruptcy case is filed.  It is a "stay" because it operates to prevent most actions of creditors to collect on debts owed prior to the bankruptcy filing.  The stay prevents most bank account garnishments.

Salt Lake City bankruptcy attorney Russell B. Weekes can help you determine your best option in case of a bank account garnishment.  Fill out our form or call 801.203.3525 to schedule your free initial consultation.  We help people all over Utah get a fresh start through bankruptcy.  Consultations are available in office and by phone.

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So a creditor served you with a Utah debt collection law suit and you are wondering what to do.  Now what do you do?  The first thing you should realize is this is not the end of the world and the worst thing you can probably due is ignore the lawsuit.  I have no doubt the temptation to do this is very real because I see it all the time.  People come into my office wanting help after a default has already issued because they took no action to respond and defend themselves.

Now that you've decided to consider this suit carefully here are some things to consider.  First, read the summons closely.  Most commonly in Utah the summons will indicate you have to file an answer within 20 days of service of the summons.  Once that deadline passes the creditor can get a default judgment.  This means the creditor gets everything it is asking for including a judgment for principal and other terms such as attorney fees and interest.  A default also means you waive all defenses you have to the matter and you will not be able to raise those later such as when a garnishment starts eating into 25% of your wages.  Once the creditor holds a judgment it can garnish your wages and bank account, place a lien on your home, and/or seek a writ to seize non-exempt property.

It is likely the summons will indicate that you don't have to answer or respond to the complaint and summons if the creditor doesn't file the law suit within ten days of serving the summons.  Creditors fail to file the complaint more often than you might think.  If the creditor doesn't file the complaint on time then the suit is automatically dismissed.  Sometimes you might need to file a motion for this to happen.  At the very least this can give you more time.

Let's say the creditor in its diligence has filed the complaint.  Now you must submit your answer.  An answer is a legal document, which you submit to the court and give a copy to the creditor answering each statement in the complaint.  An answer is also where you allege your defenses.  Common defenses include you don't owe the debt, violation of the statute of limitations, improper service of the summons, you were only an authorized user, the amount of the debt is incorrect, the interest rate is incorrect, the creditor suing is a debt buyer who has no right to payment, and of course, there are others.  Even if you owe the debt it may still be worth defending yourself in the law suit.  This can give you more time before a garnishment will take effect and you will have time to try to negotiate with the creditor.

Negotiate with the creditor you say?  That's right many creditors will still negotiate with you even at the lawsuit stage.  Again, ignoring the creditor can just cause them to proceed aggressively and with a vengeance.  The best thing to do is contact the creditor and propose a way to pay the debt in a manner and amount you can afford.  Even if you can't negotiate a lower balance by paying a lump sum up front you can still negotiate other terms like a monthly payment amount as well as elimination or reduction of interest and fees. 

Salt Lake bankruptcy attorney Russell B. Weekes can help you evaluate your options in a creditor lawsuit and negotiate with a creditor to get more favorable repayment terms.  Failing all options he can help you file for bankruptcy if you qualify.  Fill out our form or call 801.203.3525 to schedule a free 30 minute consultation.  We help people all over Utah get the fresh start they need.  Consultations are available by phone or in office.

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One pressing concern for anyone considering bankruptcy is how to pay for it.  After all in such a situation cash is a commodity likely in short supply.  One provision of the law that can help concerns waiver or installment payments of the filing fee.  The filing fee for a Chapter 7 case is $299, while the fee for a Chapter 13 case is $274.  Official Form 3A allows a bankruptcy filer to pay the filing fee in monthly installments over the course of four months after filing.  The first installment can be made at the time of filing.  The first installment can even be made after filing.  The only requirement is the fee be paid off within four months or 120 days of filing the bankruptcy case.  Applications to pay the filing fee in installments are routinely granted.  However, failure to complete the installment payments results in dismissal of the bankruptcy case.

For those who meet income guidelines the entire fee can be waived in a Chapter 7 filing.  In order to qualify, a filer must complete and file with his or her original filing Official Form 3B, have income less than 150% of the federal poverty guideline, and be unable to pay the filing fee in installments.   Information about the federal poverty guideline can be found on the website of the U.S. Department of Health and Human Services (the U.S. Bankruptcy Court website also posts federal poverty guidelines).   

Salt Lake City bankruptcy attorney Russell B. Weekes can make sure, if necessary, that you can pay the filing fee in installments or have the fee waived altogether.  Fill out our form or call 801.203.3525 to schedule your free initial consultation.  We help people all over Utah get a fresh start through bankruptcy.  Consultations are available in office and by phone.

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