Utah Bankruptcy Lawyers

You Can Experience Relief From Overwhelming Debt

At Pearson Butler, we understand that financial difficulties can happen to anyone. Whether due to job loss, divorce, disability, or even simply a lack of proper financial planning and oversight, financial hardship can cause incredible strain on you and your family. Bankruptcy relief exists to help debtors get a second chance by reorganizing and eliminating debt. No matter what financial challenge you may be facing, Utah bankruptcy attorney Pearson Butler Law can help.

Regardless of the circumstances surrounding your financial problems or the reasons you may be considering bankruptcy, we are confident that our Utah bankruptcy attorneys can help you find an ideal approach that will allow you to move forward in life. With our extensive knowledge of Utah law and federal bankruptcy laws, we are confident that our attorneys can help you explore your bankruptcy options and represent your interests during a bankruptcy case.

Our seasoned bankruptcy attorneys at Pearson Butler have over 20 years of experience and have filed over 8,500 bankruptcy cases in Utah. From explaining the basics to keeping you informed and protecting your rights through the entire process, Pearson Butler seeks to deliver caring, effective representation that will provide you peace of mind during these difficult times.

Learn more about bankruptcy and what options are available to you by contacting our bankruptcy attorneys in Utah. Call us today at (800) 265-2314.

When to Declare Bankruptcy

It’s important to remember that declaring bankruptcy is a serious event. A bankruptcy will remain on your record for seven years, and will make it difficult for you to secure new lines of credit or get housing.

A common misconception is that declaring bankruptcy will wipe out all your debts. In fact, it only wipes out certain debts. The debts it does not wipe out include student loans, child support and alimony, income taxes, debts to government agencies, and more.

Many people who declare bankruptcy have been thrown into financial turmoil by events outside of their control, such as sudden medical bills or an unexpected job loss. In this situation, declaring bankruptcy may have been the only option.

Individuals or businesses may file for bankruptcy. The two main types of bankruptcy for individuals include:

• Chapter 7: This is designed for people who cannot afford to pay their bills. In order to qualify for this type of bankruptcy, you must earn less than the median income for a family your size in your state.
• Chapter 13: This requires that you have a steady source of income and unsecured/secured debts less than a certain amount.

One of the main types of bankruptcy for businesses, on the other hand, is Chapter 11. Chapter 11’s new subchapter, known as Subchapter V, makes filing for bankruptcy easier for small businesses under a certain amount of debt. With the passing of the CARES Act, Congress recently increased the maximum indebtedness for small business debtors from $2.7 million to $7.5 million. However, the Bankruptcy Threshold Adjustment and Technical Corrections Act expired on June 21, 2024, ending the temporary increase.

Depending on the economic recovery, or lack thereof, Congress may or may not allow the higher debt limit in the future. As a result, small business owners, who are looking at various options in relation to their debt management, should meet with an attorney who has experience with Chapter 11 bankruptcies.

At Pearson Butler, our bankruptcy department has decades of bankruptcy experience, including Chapter 11 and Chapter 7 bankruptcy options. Our attorneys can advise small business owners regarding Subchapter V of Chapter 11, also known as “Chapter 5 bankruptcies.”

Is Bankruptcy Right for Me?

Deciding whether to file for bankruptcy and what type of bankruptcy, will depend on your financial circumstances and goals. There are three types of bankruptcy we explore with each client during our initial consultation. Chapter 7 offers a way to discharge and eliminate debt but may require the surrender of some assets. Chapter 13 (for individuals) and Chapter 11 (for businesses) involve the reorganization and repayment of debt under the protection of the bankruptcy court.

When you file for bankruptcy, an automatic stay is placed on all collection efforts against you. This can put an immediate stop to:

• Creditor contact and harassment
• Foreclosure
• Creditor lawsuits
• Wage garnishment
• Car repossession
• Sheriff’s sales

Overwhelming debt can cause considerable stress, marital problems, and even depression or anxiety. Take charge of your finances and see if bankruptcy may be right for you. Our bankruptcy attorneys can guide you through your bankruptcy options so that you know every advantage and disadvantage of bankruptcy when deciding if bankruptcy is right for you.

Contact the firm’s bankruptcy lawyers at (800) 265-2314 today.