The first question to ask is, which state s exemptions apply? If a person has moved within the past two years then the exemptions of another state may apply. (That can be both good and bad depending on the other state). If you have moved from out of state make sure that your bankruptcy attorney checks to see whether those exemptions apply. If your attorney doesn’t you may end up wasting time, taking unnecessary steps or even losing thousands in assets!

Certain property is exempt in Bankruptcy proceedings and can’t be taken.  Most exemptions apply to each individual and can be doubled for assets jointly owned.

Here is a brief summary of Utah bankruptcy exemptions:

• Home equity for a primary residence with up to 1 acre up to $30,000 ($60,000 if co-owned)
  • Or other real estate worth up to $5,000 if not the primary personal residence.
• Car ($3,000 in equity in one vehicle for each owner)
  • We may also be able to claim an exemption for a motor vehicle that is actually used in your principal business
• Clothing (unlimited, excluding furs and jewelry)
• Sofas, Chairs and related furnishings up to $1,000
• Beds and bedding
• One refrigerator, freezer, washer, dryer, microwave, and sewing machine
• Equipment and Tools of Trade worth up to $5,000
• Dining and Kitchen Tables and Chairs worth up to $1,000
• Heirlooms or items of sentimental value up to $1,000
• Musical instruments, animals, and books worth up to $1,000
• Food storage & provisions for 1 year
• Personal Injury proceeds (to the extent compensatory)
• Various Financial Accounts & Benefits: a 401K, disability benefits (public and private), unemployment, child support, and most retirement accounts (excluding contributions made during the previous year).

After filing bankruptcy a person can keep most income or property received, with limited exceptions (large commissions or accounts receivable may be at risk, as well as life insurance policies and inheritances within 180 days).

If you have assets that are worth more than the Utah exemptions you should talk to a qualified attorney about your options, including: Chapter 13 Bankruptcy, exemption planning, or negotiating to buy out the Chapter 7 trustee.

Exemption planning is an important part of an effective bankruptcy. Although emergency bankruptcy filings are sometimes necessary, it is often to your advantage to plan several weeks in advance to get the most out of bankruptcy. Effective planning can save you thousands!

Posted in: Frequently Asked Bankruptcy Questions