If you file for Chapter 7, you don’t have to worry about the court taking all your assets and selling them off to pay your creditors. Utah bankruptcy exemptions protect at least some of your property. However, Chapter 7 bankruptcy filers must follow the state’s laws regarding exempt property.
Do you own your home? The state’s homestead exemption allows you to protect up to $30,000 of the equity of your primary personal residence. Or, you can exempt another property – other than the one in which you live – but the amount is limited to $5,000. If you’re married and filing a joint Chapter 7 bankruptcy petition, those amounts double.
When you file for Chapter 7 in Utah, the state allows you to exempt up to $5,000 – or $10,000, if you file a joint bankruptcy petition with your spouse — of the equity of a single vehicle. However, you cannot protect a vehicle that is primarily used for recreational purposes.
In Utah, the tools of the trade exemption allows you to safeguard up to $5,000 of equity in property used for your principal profession or business when you file for Chapter 7 bankruptcy. This includes actual tools and implements as well as professional books and other property necessary to carrying on your trade.
The state exemption system allows Chapter 7 bankruptcy filers to protect several types of personal property. This includes home appliances, carpets, bedding, furniture, firearms, family heirlooms and items that hold sentimental value. The amount of equity you can protect varies, but generally doesn’t exceed $1,000 for any item category.
Under Utah law, you can exempt any benefits you have already received or are entitled to as a result of disability, illness or unemployment. Veteran’s benefits and reasonably necessary alimony and child support are also protected in Chapter 7 bankruptcy. Insurance proceeds, judgements and settlements may also meet the state exemption requirements.
Chapter 7 laws and procedures are complicated, and filing any of the Utah bankruptcy exemptions incorrectly can lead to seizure of your property. For that reason, working with an experienced bankruptcy attorney – like the professionals at the Law Office of Davis & Jones – is to your advantage.
After helping more than 20,000 Utah residents discharge their debts, our legal team has a solid understanding of the state and federal laws. With the Law Office of Davis & Jones at your side, you can rest easy, knowing your Chapter 7 case will go smoothly.
Contact our Salt Lake City office to schedule a free bankruptcy attorney consultation today for answers to your questions about Utah bankruptcy and potential exemptions.