Utah Bankruptcy Laws
The process of going through bankruptcy is protected by federal and state laws. Bankruptcy laws are different in every state and can be quite complex. Prior to making a decision about bankruptcy, make sure you have all the facts about how the laws in your state will apply to you. Talk to a local bankruptcy lawyer to find answers. Get a free case evaluation with an attorney in your area when you fill out the free form on this page.
Utah bankruptcy laws are designed to 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.
Utah 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.
Utah Chapter 7 Bankruptcy Law
If your main goal in filing bankruptcy is to wipe out your debts, you may 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 can be erased.
Utah Chapter 13 Bankruptcy Law
If you want to protect as many of your assets as possible during bankruptcy, you may want to file Chapter 13. This form of bankruptcy is designed to allow 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 can buy some time to work at repaying with court supervision and protection.
Start a Free Case Evaluation Right Now!
