Some debtors planning on filing for chapter 7 Provo bankruptcy will find that new laws prohibit them from doing so.

Bankruptcy is intended to provide troubled individuals and companies the opportunity to get out of debt, re-organize their finances and go on to be more profitable and successful. If it were not for this fresh start, many companies and individuals would be trapped in unmanageable debt indefinitely. Provo bankruptcy has helped countless local households and businesses to stay on top of their finances and to contribute to our community.

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed to ensure that bankruptcy is used to provide relief to debtors who need it and not abused by those who don’t. This will keep credit and Provo bankruptcy services more affordable for the rest of us. A part of the BAPCPA is the means test.

The means test is applied to all debtors who intend to file for chapter 7 bankruptcy. The purpose of the test is to assess the debtor’s ability to make payments towards their debts. The test compares the debtor’s income to the average (or mean) income of households the same size. Most debtors who receive an income below the average for their household size will be approved for chapter 7 bankruptcy. Debtors who receive a higher income will likely be required to file chapter 13 bankruptcy, also known as debt restructuring.

Debtors considering to file for chapter 7 Provo bankruptcy can find out if they qualify under the means test by visiting with us. One of the things we discuss in a free consultation is the means test. Debtors who bring information about their income and household find out if they pass the means test very quickly. The good news is that about 95% of debtors who want to file for chapter 7 Provo bankruptcy pass the means test.

At Utah County Fresh Start, we want to give you the legal and financial advice that will best meet your needs. Come in for a free consultation and find out how you can become free from debt!

» Fill Out A Free Provo Bankruptcy Evaluation Today!

Debtors who are considering bankruptcy need to know about the current trends for person Utah bankruptcy cases.

Personal bankruptcy, like any business, has its ups and downs.  Most people who seek bankruptcy services are familiar with that cycle.  The recent down-turn in the economy left small business owners and others in unmanagable debt and many of them turned to Utah bankrupty for relief.

As a result, The number of personal Utah bankruptcies filed annually has increased steadily over the last few years.  In 2009 there have been 10,704 personal Utah bankruptcy cases to date, compared to 9,243 total cases in 2008.

It is unsettling to see the number of Utah bankruptcy cases increasing year after year.  However, this information needs to be understood in context.  The truth is that current bankruptcy rates are still below the average from eariler in the decade.  We are coming out of a recession and the credit and financial markets are beginning to stabilize.  I am very confident that the rate of personal Utah bankruptcy will stabilize as well.

Meanwhile, for debtors who are considering filing for Utah bankruptcy, it is very important to be familiar with current trends.  Debtors need to understand that demand for bankruptcy attorneys is growing every year due to the increased rate of filings.  The Utah bankruptcy courts are also much busier places than they used to be.  All these factors make choosing an experienced and trustworthy bankrutpcy attorney more important.

Furthermore, debtors need to understand who their peers are.  Of the 10,704 personal Utah bankruptcy cases filed this year, 65% of them were under Chapter 7.  The remaining 35% filed under Chapter 13.  Debtors who are unsure of which chapter to file under should note that odds are they need to prepare for a Chapter 7 bankruptcy.

If you are considering Utah bankruptcy, you should know that you aren’t alone.  There are many others facing similar challenges and, more importantly, many who have overcome them.  I want you to know that you are more than just a statistic.  At Utah County Fresh Start we want to see you get out of debt and get on with the rest of your life.  Let us help you find the way to financial security.

» Fill Out A Free Utah Bankruptcy Evaluation Today!

The court determines what property you keep after your Provo bankruptcy not by the value of the property, but by the equity you have in it.

Debtors preparing to file for Provo bankruptcy take a close look at their assets, usually a closer look than they’ve ever taken before.  Most clients find this to be a challenging element of Provo bankruptcy.  The process of making an inventory of assets and equity can be tricky, but it van be a very rewarding experience as well.

To help you prepare for Provo bankruptcy, I’ve decided to explain what equity is and how it impacts your Provo bankruptcy.

All of your assets, your home, car, or a time-share, have a fair market value.  The fair market value is the dollar amount that you could sell that asset for today.  You may also owe a debt on these assets.  The equity you have in any asset is the difference between the fair market value and the debt you currently owe on it.  For example, if I own a car that has a fair market value of $15,000 and I owe $4,000 in car payments then the equity is $11,000, the difference.

Provo bankruptcy clients frequently worry about losing all their property after Provo bankruptcy.  This is where knowing the equity of your assets comes into play.  Exempt assets are the property that debtors will keep after Chapter 7 Provo bankruptcy.  These assets are defined as having an equity below a specific cutoff.  The cutoffs are unique for different types of assets, so come in for a consultation and we can get you some answers about your personal case.

I hope this clears up some confusion for you.  Provo bankruptcy can seem clear as mud at times, I want to help you make sense.  Then you can do what’s best for yourself and your family.  If you’re considering Provo bankruptcy, fill out the free evaluation and find out if it’s right for you.

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