Understanding Utah’s Bankruptcy Exemptions: What Property You Can Keep
Plain-English guide to Utah exemption rules for your home, vehicle, wages, retirement, and essentials
Filing for bankruptcy in Utah does not mean losing everything. Exemption laws decide what you can protect from creditors so you can rebuild. Utah requires residents to use state exemptions in Utah Code §§ 78B-5-501 through 78B-5-513. These rules apply in Chapter 7 and Chapter 13 with the same goal: a fair fresh start.
Key takeaway: if you have lived in Utah for at least two years before filing, Utah’s exemption system applies. Some federal non-bankruptcy exemptions may still protect benefits like Social Security or veterans’ benefits.
Overview: How Exemptions Work in Utah
Exemptions shield certain property from being sold to pay creditors. In Chapter 7, nonexempt value can be sold by the trustee. In Chapter 13, you usually keep assets but must repay at least the nonexempt value through your plan. Accurate schedules, solid valuations, and the right code citations are essential.
Federal vs. Utah Bankruptcy Exemptions
Most states let you choose between federal and state systems. Utah does not. Utah residents must use Utah’s state exemptions. You can still claim certain federal non-bankruptcy protections for specific benefits.
Utah’s Main Bankruptcy Exemptions
Limits change periodically. Verify the latest figures and any local court guidance before filing.
How to Claim Utah Bankruptcy Exemptions
List all assets and clearly mark each exemption on your schedules. Be accurate and specific. Courts can deny exemptions if information is incomplete or misleading.
- List every asset you own, including small or shared items
- Match each item to the correct Utah Code section
- Use realistic values and check equity against limits
- Keep proof such as appraisals, payoff statements, and policy documents
- Respond if a trustee or creditor objects and be ready with documentation
What if Property Exceeds the Limits
If equity exceeds the limit in Chapter 7, the trustee may sell the item, pay you the exempt share, and distribute the rest to creditors. In Chapter 13, you usually keep it but repay the nonexempt value through your plan. Professional valuations for homes, vehicles, and business tools help avoid surprises.
Exemptions for Married Couples
Spouses filing jointly can often double exemption amounts such as homestead and vehicle, but only if both have an ownership interest in the property. Title and equity matter.
Handling Disputes Over Exempt Property
Trustees or creditors may challenge whether an asset is exempt or properly valued. The bankruptcy court will decide based on Utah Code and your evidence. Clear records and correct citations strengthen your position.
Helpful Videos & Instagram Updates
YouTube: Utah Bankruptcy Exemptions
Instagram: Quick Updates
Key Takeaways
Utah requires use of state exemptions in §§ 78B-5-501 to 78B-5-513.
Confirm current limits and cite the correct code section for each asset.
Over the limit in Chapter 7 may lead to sale. Chapter 13 usually keeps assets with plan repayment.
Married filers can often double amounts if both own the property.
Need Help Applying This to Your Situation?
Bankruptcy can feel overwhelming, but Utah’s exemptions exist to protect the basics you need to live and work. Understanding what is covered helps you plan wisely before you file.
Talk to a Utah AttorneyThis guide is for education only, not legal advice. For more plain-English legal guidance, stay updated with Utah Law Explained, explore our mission on the About Us page, or connect with trusted counsel like Gibb Law Firm.