Utah bankruptcy laws outline the process you will take when filing for bankruptcy in the state of Utah. They also dictate what protections you receive through the process.

Bankruptcy Exemptions

Bankruptcy laws in Utah place exemptions on certain properties. These properties cannot be taken by creditors or the courts when an individual files for bankruptcy. Current exemptions are as follows:

• Up to $20,000 for a homestead, but must be no more than one acre of land
• Up to $20,000 in proceeds from the sale of the homestead for one year
• Artwork created by family
• Family portraits
• Most household appliances, sewing machine, carpets, clothing, beds with linens, and family provisions for one year
• Health aids
• Disability, veterans, unemployment, or illness benefits
• Burial plot
• Medical, surgical, or hospital care insurance benefits
• Child support
• Qualified retirement plans
• Wrongful death or personal injury proceeds
• Death benefit plan
• Alimony or separate maintenance payment if necessary for support
• Up to $500 for sofa, chairs, and similar furniture
• Up to $500 for dining and kitchen tables and chairs
• Up to $500 for animals, books, and musical instruments
• Up to $5,000 for unmatured life insurance
• Up to $3,500 for tools of the trade, a professional library, or implements used for work
• Up to $2,500 for a work vehicle
• Up to $500 for family heirlooms
• Proceeds from sale of exempt property
• 75 percent of wages

Remember, if you file for bankruptcy, some debts, like back taxes, cannot be eliminated.

Chapter 7 Bankruptcy Information

If your main goal in filing bankruptcy is to wipe out your debts, you will want to look into filing Chapter 7. To file Chapter 7, debtors must first pass a means test, which compares their income to the median income in the rest of the state. If you make at or below this median level, you qualify, and most of your debts will be erased.

Chapter 13 Bankruptcy Information

If you want to protect as many of your assets as possible during bankruptcy, you will want to file Chapter 13. This form of bankruptcy allows debtors to construct a repayment plan that is handled under supervision from the courts. While some assets will be sold after the repayment period, you buy some time to work at repaying with court supervision and protection.