Learn Important Utah Personal Bankruptcy Information (Definitions)
The following are common Utah bankruptcy terms used on this site regarding personal bankruptcy:
The business or individual that is owed money by a debtor.
Debtor or Debtors
The business or individual that owes money to the creditor.
This injunction stops the creditor from attempting to collect from the debtor. An automatic stay takes effect immediately after the debtor files for bankruptcy.
Chapter 7 Bankruptcy
The Utah bankruptcy court seizes non-exempt assets owned by the debtor and sells them to pay the creditor. A Utah bankruptcy attorney will help you protect your property in this process. This is the most common Utah person bankruptcy. Find more information about chapter 7 on our Utah Chapter 7 Bankruptcy page.
Chapter 13 Bankruptcy
The Utah bankruptcy court permits the debtor to retain his or her assets. The court requires the debtor to make payments to its creditors according to a repayment plan, which is approved by the court. Chapter 13 cases have more tools to restructure debt such as a Cram-down and a reduction of interest on secured debts. Find more information about chapter 13 on our Utah Chapter 13 Bankruptcy page.
Any property that a business or individual owns.
The property that the Utah bankruptcy court takes from the debtor and sells (liquidates) to pay the creditors.
Property that state and federal laws protect. This property will not be taken from the debtor. A Weekes Law bankruptcy attorney will help you understand these laws and protect your property.
The dollar amount that an asset can be sold for in excess of the money owed on the asset.
Debt that the debtor no longer legally responsible to pay and removes it from the debtor’s credit history. A Debt discharge will be awarded by the Utah bankruptcy court by successfully completing bankruptcy.
A bankruptcy rule that protects certain property from attachment or liquidation in bankruptcy.
Section 341 Meeting/Creditor Meeting
A hearing held in a bankruptcy case that is conducted by the trustee to question the Debtor(s) under oath about the information provided in their bankruptcy papers. This meeting is usually held 4-6 weeks after the bankruptcy case is filed. The meeting is scheduled for a group of usually 8-10 cases. the meeting is scheduled for an hour, but each case usually only lasts for 5-10 minutes.