Bankruptcy remains an excellent option for any Utah resident to obtain a well-deserved fresh start, especially in 2021. To determine your options for filing bankruptcy as we put one of the most stressful years in modern history behind us, contact the experienced attorneys at the Morrison Law Group.
Title 78B (78B-5-503) of the Utah Code states that individuals in Utah are entitled to a homestead exemption for property owned in the state of Utah. A homestead is exempt from a judicial lien, levy, execution, or for sale with the following four exceptions:
- statutory liens for property taxes and assessments on the property;
- security interests in the property and judicial liens for debts created for the purchase price of the property;
- judicial liens obtained on debts created by failure to provide support or maintenance for dependent children; and
- consensual liens obtained on debts created by mutual contract.
A person may claim a homestead exemption in either or both of the following: (i) one or more parcels of real property together with appurtenances and improvements; or (ii) a mobile home in which he or she resides. A person may not claim a homestead exemption for property that the person acquired as a result of criminal activity.
An individual is entitled to a homestead exemption consisting of property in Utah state in an amount not exceeding $5,000 in value if the property consists in whole or in part of property that is not the primary personal residence of the individual. The homestead exemption increases to $42,000 if the property claimed is the primary personal residence of the individual. Adjusted for 2021, these amounts are now $5,100 and $42,700 respectively.
Significantly, if the property claimed as exempt is jointly owned, each joint owner is entitled to a homestead exemption. For property that is not the primary residence of the individual, the maximum exemption may not exceed $10,000 per household. For property that is the primary residence of the individual, the maximum exemption may not exceed $84,000 per household. $10,200 and $85,400 in 2021. Thus, generally, married individuals filing jointly may double their available exemptions.
The Utah homestead exemption helps homeowners and owners of other real property exempt a significant amount of equity in these assets. Thus, this exemption is perhaps the most valuable of all exemptions for Utah homeowners.
Theron Morrison and the Morrison Law Group help their clients through every important stage of their bankruptcy case, especially when valuable property assets are involved. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, Orem, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.
