Utah law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a Utah bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Utah. In general, the major Utah bankruptcy exemptions include:
|GENERAL UTAH EXEMPTIONS|
|Real Estate (the Homestead Exemption)
Up to $20,000 of equity in your primary residence ($40,000 if jointly owned) can be protected; if not a primary residence, $5,000 of equity can be protected ($10,000 if jointly owned).
Up to $2,500 of equity in one motor vehicle.
Burial plot; all health aids; washer and dryer; refrigerator, freezer, stove, and microwave oven; one sewing machine; all carpeting; provisions sufficient for 12 months; all clothing; all beds and bedding; and $3,500 in implements, books, and tools of trade.
|View the complete list of Utah bankruptcy exemptions|
Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.
Generally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.
If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.
If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.
No, Utah is not a community property state. Because it is not a community property state, you will be responsible for your spouse’s debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.
Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005″ (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?
Bennett (R-UT) — YEA
Hatch (R-UT) — YEA
Frank E. Moss, U.S. Courthouse
350 South Main Street, #301
Salt Lake City, Utah 84101
Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.
Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.