An Introduction To Bankruptcy Exemptions: Part 2

An Introduction To Bankruptcy Exemptions: Part 2

If you reside in Utah and need to file a bankruptcy case, you may “exempt” or keep certain property from the reach of creditors. Utah provides a set or system of exemptions for Utah residents who file bankruptcy.

To use Utah bankruptcy exemptions, Utah debtors must be a Utah resident for at least 730 days (two years) before filing their bankruptcy petition. If not, they must use the exemptions of the state in which they resided for most of the 180 days before the two-year period that immediately preceded the bankruptcy filing. Any attorney at the Morrison Law Group may help a prospective bankruptcy debtor make this analysis and determine their proper state of residency for bankruptcy purposes.

Unless applicable law provides otherwise, married debtors jointly filing may double the amount of the Utah bankruptcy exemption if they both own the property. This amount may not be doubled if only one spouse has ownership rights in the property.

Undoubtedly, the most important exemption is the homestead exemption, which applies to a debtor’s home or other real property used as a primary residence. A married couple who co-own a home may double this exemption.

Each state separately defines a “homestead” and other related terms. The domicile rules for the homestead exemption require debtors to have acquired their home in the state where they currently reside more than 40 months before filing their bankruptcy case.

If a debtor owns property worth a certain amount or value, and the debtor’s equity is equal to or less than the Utah exemption, the debtor may keep the property in a Chapter 7 case, and not pay extra anything to keep it in a Chapter 13 case.

Determining what property a debtor may keep in a Chapter 7 bankruptcy requires making an inventory of property and estimating the replacement value of each piece of property. Next, this value must be compared to the exemption value. Is it above or below the amount of the exemption?

The assistance of Theron Morrison and his team of attorneys at the Morrison Law Group may be both invaluable and indispensable to debtors who need to estimate their prospective exemptions in a bankruptcy case correctly.

Don’t let the stigma of filing bankruptcy stop you from taking advantage of the benefits and protections afforded by federal law! An experienced bankruptcy – debt solution – attorney like Theron Morrison cares about protecting your rights. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

An Introduction To Bankruptcy Exemptions: Part 2

Picture of Theron Morrison

Theron Morrison

Utah’s top bankruptcy and consumer protection attorney.