Bankrkuptcy Filing in Utah Bucking National Trend

According to an article in the Salt Lake Tribune found here the filings for bankruptcy are up in the State of Utah. This is opposed to the national trend where filings are down nationally. The article quotes Jason Kilborn, a visiting scholar at the American Bankruptcy Institute and professor at the John Marshall Law School in Chicago. He stated that “What you’ll often see is that more people will file for bankruptcy if they think the economy is improving,” Kilborn said, explaining that by eliminating or reducing debt those consumers believe they will be better positioned to take advantage of the turnaround. “And it could be that some consumers in Utah see the economy a little different than elsewhere.” He also says in the article that Utah's home foreclosure rate could be playing a part in the amount of bankruptcies that are being filed. He contends that in other states there is an enormous backlog of home foreclosures to be processed, which allows many consumers to stay in their homes, even though they are seriously in arrears on their payments. However, it appears from his research that the "foreclosure process in Utah is clipping along" at a more normal rate and may be more quickly affecting consumers there than in other parts of the country. The article states that RealtyTrac, which tracks foreclosure filings nationally, reported that Utah had among the 10 highest rates of filings for the third quarter of 2011. Citing to statistics maintained by the bankruptcy court in the State of Utah, of the 14,552 Utah consumers who sought bankruptcy court protection from their creditors through the first nine months of this year, 33 percent filed for Chapter 13, according to the U.S. Bankruptcy Court for Utah. The remaining 67 percent filed for Chapter 7. Chapter 13 gives people the opportunity to formulate a plan to repay all or most of the time only a portion of their obligations over time. Chapter 7 involves a trustee liquidating a debtor’s assets and distributing the proceeds to creditors. What might be the best course for you can only be determined by an experienced bankruptcy attorney. Contact Red Rock Legal Services in St. George or Cedar City for a free consultation regarding your options and how to protect yourself through bankruptcy.