Filing for personal bankruptcy is a major financial decision. For many Utah residents, it represents the most effective path to relief from overwhelming debt and a chance at a fresh start.
While the word bankruptcy can sound intimidating, the process is highly structured, and understanding each step can make the experience less stressful.
This article explains what typically happens in a personal bankruptcy case, from the moment you decide to file through the final discharge of your debts. By the end, you’ll know exactly what to expect as a filer and why having an experienced bankruptcy attorney by your side is so important.
The first step is determining whether bankruptcy makes sense for your financial situation. Not everyone qualifies, and not every debt can be eliminated. Bankruptcy may help if:
You are behind on credit cards, medical bills, or personal loans.
You face constant calls from creditors or wage garnishments.
You owe more than you can realistically pay back in the next several years.
You are at risk of foreclosure or repossession.
There are two main types of personal bankruptcy:
Chapter 7 (Liquidation Bankruptcy): Wipes out most unsecured debts within a few months. It is often best for people with limited income and few assets.
Chapter 13 (Repayment Plan Bankruptcy): Creates a structured three- to five-year repayment plan, allowing you to catch up on missed mortgage or car payments while still protecting assets.
The right chapter depends on your income, assets, and goals. A bankruptcy attorney can help you weigh your options and make the best choice.
Before you can officially file, federal law requires you to complete a credit counseling session from an approved agency. This is usually done online or over the phone and takes about 90 minutes.
The session ensures you understand alternatives to bankruptcy and your financial obligations. Once complete, you will receive a certificate of completion, which must be filed with the court.
The bankruptcy process officially begins when you file a petition with the U.S. Bankruptcy Court. This petition is a detailed packet of information that includes:
A list of all creditors and the amount owed to each.
An inventory of assets, such as property, vehicles, and bank accounts.
Details of income, expenses, and recent financial transactions.
Copies of tax returns, pay stubs, and other supporting documents.
Accuracy is critical. Mistakes or omissions can delay the process or even result in dismissal of your case. This is one reason hiring a bankruptcy attorney is so important—your lawyer ensures your petition is complete, accurate, and fully compliant with the law.
Once the petition is filed, the automatic stay goes into effect. This powerful legal protection immediately stops creditors from pursuing collection actions, including lawsuits, wage garnishments, foreclosure, or repossession.
After you file, the court assigns a bankruptcy trustee to oversee your case. The trustee is not your advocate; they represent your creditors’ interests and ensure the process follows the law.
In a Chapter 7 case, the trustee reviews your assets to determine if any can be sold to repay creditors. However, Utah and federal law provide exemptions that protect most essential property, such as your home equity (up to a certain amount), retirement accounts, vehicles, clothing, and household goods.
In a Chapter 13 case, the trustee reviews your proposed repayment plan and makes sure it meets legal requirements.
About 30 to 45 days after filing, you must attend a meeting of creditors, also known as the 341 meeting. Despite the name, most creditors do not attend. Instead, you meet with the trustee, who asks questions under oath about your finances, assets, and debts.
The meeting usually lasts less than 15 minutes. If you have prepared properly, it is a straightforward step. Having your attorney present ensures you answer questions correctly and confidently.
If you have secured debts—like a mortgage or car loan—you must decide how to handle them:
In Chapter 7, you can surrender the property, reaffirm the debt (agree to keep paying it), or redeem it (pay its current value in full).
In Chapter 13, your repayment plan will outline how you’ll catch up on missed payments while keeping the asset.
Your attorney will help you choose the best option based on your financial goals.
After filing, but before receiving a discharge, you must complete a second educational requirement: a debtor education or financial management course. This course teaches budgeting and financial planning skills to help you succeed after bankruptcy.
Like the credit counseling, it can usually be completed online. You will receive another certificate of completion, which must be filed with the court.
The discharge is the ultimate goal of bankruptcy. It is a court order that eliminates your legal obligation to repay certain debts.
In Chapter 7, the discharge usually happens about three to four months after filing.
In Chapter 13, the discharge occurs once you successfully complete your repayment plan, which can take three to five years.
Most unsecured debts—such as credit card balances, medical bills, and personal loans—are discharged. Some debts, like recent taxes, student loans, child support, and alimony, typically cannot be discharged.
Once you receive a discharge, creditors are permanently barred from trying to collect discharged debts.
Many people fear that bankruptcy will ruin their financial future. In reality, bankruptcy provides a chance to rebuild. While your credit score may dip initially, most filers start receiving new credit offers within months. Many qualify for mortgages within two to four years after filing.
Steps to rebuild after bankruptcy include:
Reviewing your credit report for accuracy.
Paying all new bills on time.
Using secured credit cards or small personal loans responsibly.
Building a savings cushion to avoid future reliance on credit.
Bankruptcy is not the end—it’s a fresh financial beginning.
Bankruptcy law is complex, and mistakes can be costly. From choosing the right chapter to protecting your assets, every step requires careful planning and legal knowledge. A bankruptcy attorney:
Ensures your petition is accurate and complete.
Helps you maximize exemptions and protect property.
Represents you at the meeting of creditors.
Negotiates with creditors and the trustee when needed.
Guides you through repayment plan approval in Chapter 13 cases.
Provides peace of mind during a stressful process.
At Blue Bee Bankruptcy, we help Utah residents navigate bankruptcy with confidence. Our team takes the time to understand your unique situation, explain your options, and protect your interests every step of the way.
Filing for personal bankruptcy is a life-changing decision, but it does not have to be overwhelming. By understanding the steps—from counseling and filing the petition to meeting with the trustee and receiving a discharge—you can approach the process with clarity and confidence.
Bankruptcy is designed to give honest people a fresh start. With the right guidance from an experienced attorney, you can take control of your financial future, stop creditor harassment, and begin rebuilding your life.
If you’re considering bankruptcy in Utah, contact Blue Bee Bankruptcy today for a consultation. We’re here to help you take the first step toward lasting financial relief.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
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