Am I Eligible To File Bankruptcy In Utah?
Know the types of bankruptcy and their eligibility requirements
In determining whether a person or couple is eligible to file bankruptcy, we must first figure out which type of bankruptcy we are talking about, chapter 7
or chapter 13
. The reason is that the eligibility requirements are different for each chapter. In a nutshell, here are the basic requirements for each chapter:
Utah Chapter 7 Eligibility
- Must be under the median income for a family your size.
- Must not have filed a previous Chapter 7 bankruptcy in the last 8 years.
- Must not have receive a discharge from a chapter 13 filed within the last 6 years.
If you satisfy all of these conditions then you may be able to file chapter 7.
Utah Chapter 13 Eligibility
- Can be over or under the median income for a family of your size, but must have some kind of income
- Must have less than $419,275 in unsecured debt.
- Must have less than $1,257,850 in secured debt.
- Must not have filed a chapter 7 within the last 4 years (although in some circumstances a chapter 13 still makes sense in this situation)
- Must not have received a discharge in a prior chapter 13 filed less than 2 years earlier
If you satisfy all of these conditions then you are clear to file a chapter 13.
Keep in mind, these basic requirements are just the bare minimums. Even if you are eligible to file chapter 7, there could be a whole host of reasons chapter 13 is better for you, and vice versa. Talk to your lawyer about it to determine the best course of action.
Utah Bankruptcy Clinic
1140 36th St., Suite 205
Ogden, UT 84403