Utah adheres to the Fair Debt Collections Practices Act, which prohibits a creditor from employing any abusive actions to collect a debt owed them. Other than this, the Utah legislature does not have any other state law that differs from this federal act, enacted in 1977. However, there are nonprofit and other associations and debt counselors that can help any Utah resident eliminate or pay off insurmountable debt.
Fair Debt Collections Practices Act
This is a federal law that protects consumers in all states against abusive or deceptive debt collection practices. This act prohibits a collector from lying, calling at work if the employer disapproves, using profane language and requires that a collector protect a debtor's privacy. If a creditor does this and it can be proved, the collector loses the right to collect the debt.
Debt Consolidation
This option allows Utah residents to lump all of their debt together and seek a loan from a bank or debt consolidation company. This is used to pay off the total of all other loans, and the debtor only need make the one monthly loan payment to pay off the debt. This monthly payment is usually lower than current credit card payments.
Debt Settlement
Like debt consolidation, debt settlement involves getting a loan to pay off all the debt and also offers the advantage of only having one payment instead of many. But unlike consolidation, a debt settlement company negotiates the total debt with your creditor, eliminating high interest rates, penalties, late fees and, in some cases, some of the actual debt in exchange for a onetime lump payment. After all the debt is negotiated, a loan is taken out to pay off all of the creditors, giving the debtor one monthly payment. This option is often offered by nonprofit organizations that also offer other credit counseling and budgeting services in Utah.
Bankruptcy
In cases where neither consolidation or debt settlement work, then bankruptcy can be filed at U.S. courthouses located in Utah federal districts of Ogden, Saint George or Salt Lake City. When you initiate a bankruptcy filing, you need the help of a qualified bankruptcy attorney registered with the Utah state bar. Discuss your bankruptcy options with your attorney and choose either Chapter 7 or Chapter 13 bankruptcy. List all of your creditors and the amount you owe to each. You will also need to give other information regarding your income and monthly expenses. The state of Utah will require you to attend state-approved credit counseling. You can find approved credit counseling agencies through the U.S. Justice Department in Utah.
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