Chapter 13 Bankruptcy in Utah
Chapter 13 Bankruptcy Attorneys serving Salt Lake City and all of Utah. Call today to discuss your reorganization options with an experienced bankruptcy attorney.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a "reorganization" bankruptcy that allows individuals to catch up on secured debt arrears (like overdue mortgage or car payments) and repay some or all unsecured debt through a court-approved repayment plan lasting 3–5 years. At the end of the plan, remaining eligible debts are discharged.
Advantages of Chapter 13 Over Chapter 7
- Save your home: Chapter 13 allows you to cure mortgage arrears over the life of the plan, preventing foreclosure
- Keep non-exempt assets: Unlike Chapter 7, you generally keep all your property in Chapter 13
- Broader discharge: Some debts that cannot be discharged in Chapter 7 may be dischargeable in Chapter 13
- Cramdown provisions: In some cases, you can reduce the principal owed on secured debts to the value of the collateral
- Co-signer protection: The automatic stay extends to protect co-debtors on consumer debts in Chapter 13
Tax Debt in Chapter 13
Chapter 13 has special provisions for tax debt that make it particularly valuable for taxpayers with significant IRS obligations:
- Priority tax debt (recent taxes) must be paid in full through the plan, but you get 3–5 years to do so without additional penalties accruing
- Non-priority tax debt (older taxes meeting discharge requirements) can be treated as general unsecured debt and may receive less than full payment
- The automatic stay immediately stops IRS collection actions including levies and garnishments
Contact Us Today
Call Michelle Turpin P.C. at (801) 685-0552 to schedule a confidential bankruptcy consultation.
This content is provided for informational purposes only and does not constitute legal advice.