By Kimberly McLean
Utah, with the highest level of personal bankruptcies across the nation, will be faced with more challenges as Chapter 7 filing laws become stricter in mid-October.
Already experiencing an increase in filings throughout the country, Utah is also seeing a surge of Chapter 7 bankruptcy filing requests in an attempt to beat the beginning of more stringent requirements.
There are several contributing factors to Utah?s already high bankruptcy figures. William Stillgebauer, the clerk of the U.S. Bankruptcy Court of Utah, said some of the main problems are both economic and social.
?There are so many factors that we see on a daily basis that it is difficult to pinpoint bankruptcy causes to just a handful of reasons,? Stillgebauer said. ?The more people, especially students, financially prepare and plan, the more improvements we will see as a state.?
Robert Bennet, Utah joint economic committee chairman, said the problem stems from a number of things anywhere from the fact that Utah has the largest gender wage gaps in the nation to other social factors such as high marriage rates compounded with a tendency to marry at a younger age and start families sooner.
Another factor contributing to Utah?s bankruptcy problem is the high student population.
?Students are relying on credit cards more and more to pay off school, car, clothes, food and other expenses but they don?t have the funds to cover them,? said Veronica Aralova, a BYU freshman from Moscow, Russia. ?They don?t take money seriously and think everything will be fine.?
While many students are still struggling with finances for school and life, they get married without a secure financial plan and are in no position to support themselves or a family and as a result end up filing for bankruptcy, Stillgebauer said.
Salt Lake Bankruptcy Attorney Linda Smith said that even with the Chapter 7 changes, residents can still file independently but would save time and avoid the risk of errors on some of the scrupulous paperwork if they seek legal advice.