For a bankruptcy debtor to genuinely receive a fresh start, federal bankruptcy law acknowledges that individuals experiencing financial burdens must be able to retain certain property essential for daily living, the law allows bankruptcy debtors to “exempt” or keep certain property from the reach of creditors.
In bankruptcy law, these are known as “exemptions.” Determining what bankruptcy exemptions apply to a debtor’s case may require a complex legal analysis. Theron Morrison and his team of attorneys at the Morrison Law Group may help anyone with this complicated but necessary evaluation.
The following is a list of the most important bankruptcy exemptions allowed under Utah law:
*Homestead Exemption
In Utah, individuals are entitled to a homestead exemption consisting of property in an amount not exceeding $5,000 in value if the property consists in whole or in part of the property that is not the primary personal residence of the individual; or $42,000 in value if the property claimed is the primary personal residence of the individual.
If the property claimed as exempt is jointly owned, each joint owner is entitled to a homestead exemption, except that the maximum exemption may not exceed $10,000 per household or $84,000 per household respectively.
*Automobile Exemption
In Utah, individuals are entitled to an exemption, not exceeding $3,000 in value, of one motor vehicle. The definition of “motor vehicle” for purposes of this exemption does not include any motor vehicle designed for or used primarily for recreational purposes, such as an off-highway vehicle as defined by applicable Utah law, except a motorcycle the individual regularly uses for daily transportation; or a recreational vehicle as defined by applicable Utah law, except a van the individual regularly uses for daily transportation.
*Personal Property Exemption
In Utah, individuals are entitled to exemption of the following property up to an aggregate value of items in each subsection of $1,000:
(a) sofas, chairs, and related furnishings reasonably necessary for one household;
(b) dining and kitchen tables and chairs reasonably necessary for one household;
(c) animals, books, and musical instruments, if reasonably held for the personal use of the individual or the individual’s dependents; and
(d) heirlooms or other items of particular sentimental value to the individual.
*Tools of the Trade
In Utah, individuals are entitled to an exemption, not exceeding $5,000 in aggregate value, of implements, professional books, or tools of the individual’s trade, including motor vehicles to which no other exemption has been applied, and that are, in fact, used by the individual in the individual’s principal business, trade, or profession.
The involvement and assistance of experienced bankruptcy counsel may be necessary to ensure that a debtor includes all available exemptions. With a team of exceptional lawyers and indispensable staff, Theron Morrison has assisted thousands of Utah residents to solve their financial problems by helping them file a Chapter 7 or Chapter 13 bankruptcy case. The Morrison Law Group offers debt relief services related to chapter 7 and chapter 13 bankruptcy, workouts, delinquent taxes, loan modifications, short sales, student loans, and defending the residents, consumers, and taxpayers of Utah against illegal collection. Contact the Morrison Law Group today at 801-456-9933 to consult with an experienced bankruptcy and debt solution attorney.
