{"id":286878,"date":"2021-04-23T07:38:14","date_gmt":"2021-04-23T12:38:14","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/utah-bankruptcy-exemptions-and-law.html"},"modified":"2026-07-28T10:23:32","modified_gmt":"2026-07-28T15:23:32","slug":"utah-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/utah-bankruptcy-exemptions-and-law.html","title":{"rendered":"Utah Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Utah Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Utah<\/span> bankruptcy<\/span> law<\/span> governs how state residents seek relief from overwhelming debts through Chapter 7 liquidation or Chapter 13 reorganization. Under these rules, filers must use specific state exemptions to protect assets such as their\u00a0primary residence<\/span>\u00a0and\u00a0motor vehicles<\/span>, rather than federal options.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

When Utah<\/span> residents find themselves juggling debts, bills, and calls from credit collectors, they may need to turn to bankruptcy for debt relief<\/span>. Utah<\/span> state<\/span> law provides residents with substantial protections during the bankruptcy process<\/span>, helping them achieve a fresh start.<\/p>\n

Utah<\/span> is an \u201copt-out\u201d state, meaning residents must use state exemptions rather than federal ones. Otherwise, federal bankruptcy filing rules apply to all Utah<\/span> bankruptcy<\/span> cases<\/span>.<\/p>\n

Utah<\/span> Bankruptcy<\/span> Laws<\/span><\/h2>\n

Federal law<\/span> and the U.S. Bankruptcy Code<\/span><\/a> determine most of how bankruptcy cases<\/span> proceed. The Utah<\/span> Exemptions Act<\/a> contains all of Utah<\/span>\u2019s property exemptions, including homestead exemptions and other personal property<\/span> exemptions.<\/p>\n

To file bankruptcy<\/span> in Utah<\/span>, you must complete a credit counseling<\/span> course within 180 days before filing. A list of qualified courses is available at the U.S. Department of Justice<\/a> DOJ). Most can be completed online within a few hours.<\/p>\n

You can file for bankruptcy in Utah<\/span> if you have lived there for at least 180 days. To use Utah<\/span>‘s exemptions, you must be a Utah<\/span> resident with at least two years’ residency.<\/p>\n

Most Utah<\/span> debtors will file one of two types of bankruptcy<\/span>. Let\u2019s examine each one.<\/p>\n

Chapter 7 Bankruptcy<\/span><\/h3>\n

Also known as a \u201cliquidation bankruptcy,\u201d Chapter 7<\/a> is used when a debtor has mostly unsecured debts<\/span> such as medical bills and credit card<\/span> debt. In a Chapter 7, a bankruptcy trustee<\/span> takes over your non-exempt property<\/span> (called the \u201cbankruptcy estate\u201d) and sells it to repay your creditors. Any remaining debt is discharged by the bankruptcy court<\/span>.<\/p>\n

To qualify for Chapter 7, debtors must pass a means test<\/a>. If your income is below the median annual income for your area, you\u2019ll automatically qualify. The court will examine your living expenses and other factors in your case if your income is slightly above that level, but you have substantial debt.<\/p>\n

Chapter 13 Bankruptcy<\/span><\/h3>\n

In a Chapter 13<\/a>, or reorganization bankruptcy, you and the bankruptcy trustee<\/span> develop a repayment plan<\/span> to repay your secured creditors. Your debts are consolidated so that you only make one payment through the trustee. The payment plan lasts from three to five years. You must have a stable income sufficient to cover your living expenses and the payment plan for the duration of the plan.<\/p>\n

Chapter 13 bankruptcies<\/span> are ideal for homeowners who are behind on mortgages and need to pay off secured and unsecured creditors<\/span> without losing their home. They are also used by debtors who have valuable non-exempt property<\/span> they don\u2019t want to lose in a Chapter 7.<\/p>\n

To file Chapter<\/span> 13, you cannot have more than $1,580,125 in secured debt and $526,700 in unsecured debt<\/span>. These totals include current and past-due obligations.<\/p>\n

Automatic Stay<\/h3>\n

Both types of bankruptcy<\/span> have an automatic stay<\/a> that immediately halts collection actions against the debtor. The automatic stay is temporary, but acts as an emergency stop on:<\/p>\n