Utah Bankruptcy Explained: What Utah Residents Need to Know
Bankruptcy laws are complex, but they can be a lifesaver for businesses that are struggling to pay their debts. If you are considering bankruptcy for your Utah business, it is important to understand the different types of bankruptcy and the requirements for filing.
Types of bankruptcy for businesses
There are two main types of bankruptcy for businesses: Chapter 11 and Chapter 7.
- Chapter 11 bankruptcy is a reorganization bankruptcy. This means that the business will continue to operate while it develops a plan to repay its debts. Chapter 11 bankruptcy is often used by larger businesses that want to stay in business.
- Chapter 7 bankruptcy is a liquidation bankruptcy. This means that the business will sell its assets to pay its creditors. Chapter 7 bankruptcy is often used by smaller businesses that cannot afford to repay their debts.
Requirements for filing bankruptcy
To file for bankruptcy, your business must be insolvent. This means that it must have more debts than assets. You will also need to file a petition with the bankruptcy court and complete a number of forms.
Chapter 11 bankruptcy
If you choose to file for Chapter 11 bankruptcy, you will need to develop a reorganization plan. This plan must be approved by the bankruptcy court and your creditors. The plan will outline how you will repay your debts and how long it will take you to do so.
Chapter 7 bankruptcy
If you choose to file for Chapter 7 bankruptcy, your business assets will be sold to pay your creditors. You may be able to keep some of your personal assets, but this will depend on the type of assets you have and the laws of your state.
Getting help with bankruptcy
Bankruptcy is a complex process, and it is important to get help from a qualified bankruptcy attorney. An attorney can help you choose the right type of bankruptcy for your business and can guide you through the filing process.
Additional information for Utah businesses
The following are some additional things to keep in mind if you are considering bankruptcy for your Utah business:
- You must file for bankruptcy in the bankruptcy court for the district where your business is located.
- You must file a pre-bankruptcy credit counseling certificate.
- You must file a list of all of your creditors and their addresses.
- You must file a list of all of your assets and their values.
- You must attend a meeting of creditors.
For nearly two decades, the experienced Salt Lake City bankruptcy attorneys at Utah’s Lawyers have provided customized legal solutions for individuals, families, and businesses throughout Utah who are struggling with financial challenges.
We understand when people begin to search for a bankruptcy attorney, they are facing financial difficulties that cause significant stress, anxiety, and even personal or professional consequences which seem insurmountable.
Our Salt Lake County bankruptcy attorneys want to help you put an end to the late fees and interest charges that are weighing you down and stop the collection notices and harassing phone calls that are disrupting your quality of life.
You deserve a fresh start. Depending on your unique financial circumstances, we may be able to help. Contact our Salt Lake City bankruptcy lawyers today to discover the legal remedies that are available to you, so you can take back control of your life.
Remember, you’re not alone in this journey, and there is hope for a brighter financial future. Contact Utah’s Lawyers today at (801) 316-8956 to schedule a consultation and take the first step towards financial relief.
Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Please consult with an experienced bankruptcy attorney for guidance tailored to your specific situation.