If you’re thinking about filing for Chapter 7 bankruptcy in Utah, you’ll want to know about the motor vehicle exemption.
Exemptions are laws that provide bankruptcy filers with asset protection, as any property that qualifies cannot be sold to pay off creditors. Below, you’ll find details on the Utah motor vehicle exemption and how to know if you’ll be able to claim the exemption in your Chapter7 bankruptcy petition.
Amount of the Utah Motor Vehicle Exemption
In Utah, single bankruptcy filers can exempt up to $3,000 of the equity in a single motor vehicle. For married couples who file joint Chapter 7 petitions, that amount doubles to $6,000.
If you have less in equity than the applicable exemption amount, you should be able to keep your vehicle. If not, the bankruptcy trustee can sell it and use the funds to repay your unsecured creditors. Keep in mind, though, that Utah law allows you to exempt a car or truck – you’ll only be able to protect a van or motorcycle if you use it for daily transportation.
Tools of the Trade Bankruptcy Exemption
Utah bankruptcy filers can exempt up to $5,000 of the equity in property necessary for business or to carry out a trade. And, the tools of the trade exemption can be used to safeguard an additional vehicle.
If you own a delivery truck, moving van or other commercial vehicle, it should remain yours as long as the equity doesn’t exceed the Utah bankruptcy exemption amount. The vehicle must, however, be used for your principal profession – and simply driving it to and from work each day isn’t enough to qualify as an exempt asset.
Speak with an Experienced Utah Bankruptcy Lawyer
When you file for Chapter 7, you can take advantage of several Utah bankruptcy exemptions. In addition to your primary motor vehicle and, if applicable, a vehicle used as a tool of the trade, you can protect a significant amount of equity in your home. The state exemption system also allows you to safeguard personal property, disability benefits and some other types of assets.
To exempt all of the property you can, you’d be wise to work with an experienced Utah bankruptcy lawyer – like the professional team at the Law Office of Davis & Jones. Chapter 7 laws and procedures are complex, and filing exemptions incorrectly can empower the bankruptcy trustee to sell your assets. With our highly skilled attorneys in your corner, that won’t happen.
We’ve helped over 20,000 Utah residents discharge their debts, and we have a solid understanding of the state exemption laws. Our legal team can handle your Chapter 7 case, making the process of filing for bankruptcy as easy and stress-free as possible.
For more information on the Utah bankruptcy motor vehicle exemption, or to schedule a free consultation at the Law Office of Davis & Jones, P.C., contact us online or give our Salt Lake City office a call today.