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Bankruptcy in Utah

Are there any income requirements for filing bankruptcy in Utah?

The only income requirement that is now in place for filing bankruptcy in Utah applies to those individuals who wish to file for Chapter 7 bankruptcy.  This requirement states that your annual income must be less than the average income in Utah for the year prior to your petition for bankruptcy.  If your income is higher than average, you will need to file for Chapter 13 bankruptcy.  There are currently no income requirements in order to file for Chapter 13 bankruptcy.

If I am married, do I have to file with my spouse Utah?

Utah is not a community property state.  This means that married couples are not responsible for the other spouse’s debt unless they have assumed that debt by co-signing on that debt.  For this reason, it is not required for spouse’s to file for a joint bankruptcy settlement.  In fact, many couples choose not to file jointly if only one spouse is primarily responsible for the household debt.  This allows the couple to preserve the credit rating of the other spouse.  In situations where both spouses share the majority of the household debt, it may be necessary for both spouses to file for bankruptcy in order to discharge the joint debt.

What are the property exemption rules in Utah?

The property exemption rules in the State of Utah are as follows:

Homestead exemption of up to $20,000 in equity in your primary residence

Up to $2,500 equity in one motor vehicle

One burial plot and all health aids

100% of appliances, clothing, and food necessary for 12 months

Up to $3,500 in tools, books, and other materials necessary to your profession

Will all of my debts be discharged as part of a Chapter 7 bankruptcy in Utah?

The bankruptcy laws in the State of Utah state that only unsecured debts may be discharged as part of a Chapter 7 bankruptcy.  This means that you will not be able to discharge any debts which have been secured using collateral such as your home or vehicle.  If the majority of your debt is secured debt, you may wish to reconsider your decision to file bankruptcy as this debt cannot be discharged.  In order to determine whether or not your debt can be discharged as part of your bankruptcy settlement, it is best to consult with an experienced Utah bankruptcy attorney.  Your attorney will be able to explain in detail the rules and regulations as they pertain to the discharge of your debts.

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