Our attorneys

Debt Consolidation, Utah

Are you a Utah consumer badly with too many debts? Then, consider a debt consolidation program get your finances back on track!

Debt consolidation allows you to combine several debts into a single loan that you repay at a lower interest rate. You can find a consolidation loan on your own, or get help from a Utah debt consolidation company.

Consolidating debts on your own

In order to consolidate your debts on your own, you need take out a low interest loan and pay off your existing bills. This simplifies your situation by leaving you with a single low interest payment every month.

What kinds of consolidation loans are available in Utah?

There are two types of loans:

• Secured loans:secured loans require the borrower to put down some collateral like their house or car against the loan. Secured loans are generally available at lower interest rates and for more money than unsecured loans.
• Unsecured loans:do not require collateral. In order to get an unsecured loan, the borrower must have a decent credit score in order to reassure the lender.

How a Utah Debt Consolidation Company can help you

If you are not confident that you can find the right consolidation loan by yourself, then why not enroll in a debt consolidation program offered by a BBB accredited debt consolidation company?

The Utah consolidation firms offer a wide range of debt consolidation programs to suit your needs. The consolidation programs these companies offer advice to their clients to spending wisely, organize their finances, and understand interest rates.

When you enroll in a debt consolidation program, you pay an upfront fee to the company for initiating the consolidation process then the company takes complete charge of your debt issues.

First the company's debt consolidation lawyers thoroughly assesses your debt situation and contacts your creditors asking them to stop all communication with you. They then negotiate with your creditors to eliminate late fees and over-limit charges that have accrued, and find you a lower interest loan, so that your monthly payments become affordable.

If you are stuck up with any of the following debts, considering debt consolidation would be the best option:

• Credit Cards Debts
• Student Loans
• Personal Loans
• Medical bills
• Payday Loans

How debt consolidation affects your credit score in Utah

Debt consolidation is the best among debt relief options in Utah to improve your credit score.

Debt consolidation does cause you to take out another loan that lowers your credit score a bit. However, as your defaulted accounts start getting paid off, your score increases. And as you pay off the consolidation loan, your credit score increases even more.

Debt consolidation tips

Handled properly, debt consolidation can be the best means to fix your credit score. It is very important for you to keep certain things in mind while in a debt consolidation program:

• Do not to close your credit card accountsas soon as you pay them off, as it impacts your credit score.
• Avoid taking out any new loans, while on a consolidation program, as it also decreases your credit score.
• Make your payments on time,as timely payments improve your credit score.
• Avoid balance-transfers, especially if you apply for a new credit card in order to take advantage of the introductory interest rates. If you fail to pay off the balance within the trial period, your interest rates increase, and could hamper your ability to pay on time.
• Avoid frequent applications for credit cards, while in a consolidation program. Applying for a new credit card every six months opens up possibilities for new defaults.

Benefits of Utah Debt Consolidation

• Lower interest rates.
• Single monthly payments.
• Freedom from creditor harassment.
• Improved credit score.

Other debt relief options

Debt consolidation is only one option to get out of debt. Many debt relief companies offer other debt relief options such as debt settlement and bankruptcy to help their customers. If you are not sure about debt consolidation, you can also try debt settlement or bankruptcy.

Debt settlement in Utah

Are you a Utah resident with lots of debt? Are you frantically trying to avoid the pitfalls of bankruptcy? Debt Settlement could be the answer!

Debt Settlement is a simple and easy debt process where the debtor and creditor agree on a reduced sum of money that will be regarded as payment in full.

How debt settlement works in Utah

There are two ways to settle you debts, on your own or with the help of a reputable debt settlement company.

Settling your debts on your own

Settling your debt amounts on your own is not easy, but not impossible. All you need is the patience to handle your creditors and some knowledge of the law.

Here are some simple guidelines on how to settle your debts by yourself:

• Know the law: There are a lot of free legal resources online and in your area you can consult. Get to know Utah's and collection law before you start negotiating.
• Contact your creditor: Then contact your creditor and let them know you want to settle your debts. Convince them that you cannot continue making your current monthly payments and that you might end up in bankruptcy.
• Offer a lump-sum settlement: Whenever you negotiate with the creditors, try and offer a lump-sum settlement. Creditors are more likely to accept your proposal if they are sure they can get the agreed on amount. If you can't afford to make a lump-sum settlement, try and get the creditor to agree to a repayment plan.
• Make sure your creditor reports your debts as "settled": Once the settlement process is over, make sure your creditors report your debts to the Credit Bureaus as "settled" or "paid".

Enrolling with a Utah Debt Settlement Company

If you don't think you can settle your debts on your own, then get help from an established debt settlement company. These companies specialize in debt settlement and know the right tactics to gets your debts reduced, and ensure that your creditors can't make harassing and abusive collection calls while you are on the settlement program.

Once you enroll in a settlement program, one of the company's lawyers thoroughly evaluates your finances and your debt. The lawyer then negotiates with your creditors to eliminate late-fee elimination and reduce your debt. Effective debt negotiation can reduce your debts up to 60% and ensures there are no loopholes.

How to choose a debt settlement company in Utah

Always look out for the following when you are deciding on a debt settlement company:

• Check the company's Better Business Bureau (BBB) accreditation.
• Talk to your friends and relatives about the reputation of the company you are considering.
• Look at the company's record of successful debt settlement cases as well as their references and case-studies. Don't hire a company that won't provide any.
• Enrolling with a reputable debt settlement-company will not only ensure an effective debt settlement, but also keep you away from settlement scams.

How long it takes to settle your debts

The time it takes to settle your debts Utah depends on the kind of debt, the amount of your debts, and the number of debts you want to settle. While, a usual credit card debt settlement case in Utah would take you at the most 3-9 months, other kinds of debts would take about 1 to 3 years to get settled.

How Utah Debt Settlement affects your Credit Score?

The extent to which debt settlement impacts your credit score depend on:

• The extent your debts are delinquent.
• Your present credit score.
• The amount of your debt.

If you settle your accounts that are already delinquent, it increases your credit score. These accounts then appear as "paid off"/ "settled" on your credit report.

As you start settling your debts, initially your credit score decreases as your accounts go delinquent. On the successful completion of the settlement program, your score improves, putting you in a better position than you were before.

Benefits of Utah Debt Settlement

• Helps you avoid bankruptcy: A debt settlement program in Utah helps you evade bankruptcy and keep your assets.
• You pay less than with debt consolidation: A good debt consolidation program can simplify your finances, but you still pay the full amount you owe. A debt settlement program reduces your debt amount and gets rid of your late fees and over-limit charges, so that you end up paying less.
• It is a better choice than Credit Counselling: Most of the credit counselling companies receive an incentive from the creditors to ensure that the debtors pay the most that they can. However a Utah debt settlement plan makes room for the lowest settlement amount that the creditor will accept.
• Puts an end to harassing collection calls: As you settle your debts, creditors stop calling you to demand repayment.

Debt Settlement and Taxes

The IRS regards the entire amount of the debt forgiven by your creditors as taxable income to you, unless you can show you were insolvent on the day before the debt was forgiven. The creditor(s) must report the amount to the IRS and Utah taxing authority and send you a 1099-C for the tax year in which the debt was forgiven.

In order to be sure about the effect debt settlement will have on your state income taxes; you should consult a tax professional in your area.

Bankruptcy in Utah

Are you on the brink of financial collapse? Have all the other debt relief options such as debt consolidation and debt settlement, failed to fix your problems? Then filing for bankruptcy is the solution.

How to file for bankruptcy in Utah

Bankruptcy is governed by Title 11 of the Federal Code. Most consumers file bankruptcy under Chapter 13 or Chapter 7.

Chapter 13 Bankruptcy is also known as "wage earner's bankruptcy". During Chapter 13, a court appointed trustee works out a repayment plan with your creditors. Chapter 7 is the sale of your non-exempt assets, which are then used to pay off your debts.

Chapter 7 bankruptcy Means Test

Under the new changes to the Bankruptcy code enacted in 2005, any debtor seeking to file for Chapter 7 must qualify under a Means Test. In order to qualify, the debtor must make less than the median income than other families of the same size according to the IRS and the most recent census. Below are the most recent median income standards for Utah:

If you do not qualify for Chapter 7, then you must file for bankruptcy under Chapter 13.

Debts that are not released by Utah Bankruptcy

Following are the debts that will not be removed if you file for bankruptcy in:

• Child Support & Alimony.
• Tax liens.
• Student Loans.
• Luxury items bought within 90 days of bankruptcy filing.
• Fines owed to federal or Utah government agencies.
• Debts accrued through fraudulent activities.
• Recent Payday Loans.

Bankruptcy Exemptions in Utah

Like most other states, Utah offers a wide range of exemptions to debtors in bankruptcy. The following are a few of the exemptions:

• Homestead Act: Home or mobile and surrounding land not exceeding 1 acre to $20,000; proceeds of the sale of your home to $20,000 for 1yr after receipt; burial plot.
• Personal Items: Washer, dryer, refrigerator, freezer, stove, microwave oven, sewing machine, carpets, family provisions for 12 months, clothing, beds and bedding; family portraits and art created by family; furnishings to $500; work car to $2,500; heirlooms to $500.
• Retirement Assets: Qualified pensions, profits sharing, and social security.
• Other: Proceeds from the sale or destruction of exempt property; 75% of earned but unpaid wages.

In order to qualify for the Utah bankruptcy exemptions, you must meet the following criteria:

You have been living in Utah for at least 2 years before filing for bankruptcy.

OR

You have not lived in any other state in the previous 2 years but you have spent the majority of the 180 day period preceding the 2 year period in Utah.

In case you do not qualify for the Utah exemptions, you will be eligible for the federal exemptions.

Consulting a Bankruptcy Attorney in Utah

Seeking advice of a reputable bankruptcy lawyer in Utah could be the best thing to do when deciding to file bankruptcy. A bankruptcy lawyer can give you the advice and expertise you need to get out of debt with dignity and with most of your assets.

Payday Loans in Utah

The Check Cashing Registration Act legalizes payday lending in the state of Utah, with about 427 lending locations operating across the state. In fact, Utah is one of those few states that imposes few regulations on payday lenders.

Utah does not limit the amount a borrower can take out as payday loan. Utah also allows lenders to charge as much in interest as they believe the market can bear. Payday loan rollovers are limited to 12 weeks after the initial loan is taken out. In addition, Utah law states that a payday lender cannot charge more than 10% interest.

This lack of stringent regulations often exposes borrowers to high interest rates imposed by payday lenders. If you find yourself trapped in payday loan problems, consult a collections lawyer in your area.

Debt Collection Laws in Utah

Utah debt collection law incorporates certain significant regulations that supplement the federal Fair Debt Collection Practices Act and the Fair Credit Reporting Act. These regulations protect the Utah consumers against illegal and deceptive debt collection practices carried out by creditors.

• Wage garnishment is permitted if the amount garnished is less than the federal rate of either 25% or 30 times more than the current federal minimum hourly wage. Wage garnishment in Utah can only last up to 120 days.
• Utah courts shall not enforce contracts in which both parties were informed of possible illegal means used to retrieve default payments. However, in successful lawsuits for a debtor, compensation for legal fees is granted along with fines ranging from $100 to $5,000.
• The debtor may repay a debt in full directly to the loaning party at any time.
• Wage garnishment is permitted if the amount garnished is less than the federal rate of either 25% or 30 times more than the current federal minimum hourly wage. Wage garnishment in Utah can only last up to 120 days.
• Combining default payments at an interest rate no higher than the original is allowed.
• The creditor may make changes to an open-end consumer credit contract, provided the debtor is informed about it.
• Granting loans without proper registration is illegal
• Discharge of employment by an employer due wage garnishment is prohibited.
• It is illegal to enforce contracts that are deemed inequitable by the court

Utah Statutes of Limitation

A statute of limitations (SOL) refers to the maximum period of time after which a debtor goes delinquent on his/ her repayments a creditor has to file suit. You become delinquent from the date your last payment was due.

SOLs only covers lawsuits, and SOL expiration does not end your obligation to pay your debts or the creditor's right to collect the money owed by other means.

Most SOLs vary from state to state, but the SOLs dealing with contracts and loans are generally the same in every state.

The following are the different Utah SOLs:

Utah debt laws, in addition to federal regulations, aim at safeguarding the rights and interest of Utah debtors. So, if you feel your rights have been violated by a creditor, consult a collections lawyer in Utah without delay!