Salt Lake Bankruptcy Center

Utah Bankruptcy Exemptions

Importance of Utah Bankruptcy Exemptions

It is important to understand Utah bankruptcy exemptions because a debtor who files Chapter 7 bankruptcy is required to give up any non-exempt assets. Utah bankruptcy exemptions laws state that debtors may keep any exempt assets regardless of what the asset is.

Utah bankruptcy exemptions are important only in Chapter 7 bankruptcy because in Chapter 13 bankruptcy the court does not require that the debtor give up any assets. While it is important for people to understand Utah bankruptcy exemptions, it is most important for those who will file Chapter 7.

How To Determine Utah Bankruptcy Exemptions

Utah bankruptcy exemptions law states that if the equity in an asset is below a specific limit, then the asset is exempt. Equity is the extra money that a debtor can sell an asset for beyond what he or she owes on it. For example, if you could sell your car for $10,000 but only owe $9,000 on it, the extra $1,000 is the equity in the car.

Most of our clients are able to keeps their assets with the help of our attorneys. Our attorneys can help you understand Utah bankruptcy exemptions and how you can convert some of your non-exempt assets to exempt assets.