Utah Bankruptcy Exemptions — What You Keep

Exemptions are the legal rules that determine what property you can keep when you file for bankruptcy. In Utah, exemptions are critically important because they define the line between protected and at-risk assets §78B-5-503.

Utah requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Utah exemption amounts below control what you can protect.

Homestead §78B-5-503

Set by statute per individual for a primary residence, with a per-household maximum for jointly owned property; adjusted annually for inflation by the State Auditor — confirm the current published amount with a lawyer. Applies to primary personal residence. Mobile homes qualify. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.

Personal property §78B-5-506; §78B-5-505

$1,000 aggregate within each of four categories (sofas, chairs, and related furnishings; dining and kitchen tables and chairs; animals, books, and musical instruments; heirlooms or items of particular sentimental value); $5,000 aggregate for implements, professional books, and tools of the trade. Wearing apparel is exempt separately under 78B-5-505.. This covers household goods, furnishings, clothing, and everyday personal items.

Vehicle §78B-5-506(3)(b)

$3,000 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.

Wages §70C-7-103

75% of disposable earnings exempt (federal standard). This applies to wages already earned but not yet paid at the time of filing.

Retirement accounts §78B-5-505

ERISA-qualified plans, IRAs, and state retirement funds are fully exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).

Tools of trade §78B-5-506(2)

$5,000 in tools, books, and implements of trade or business. This protects the equipment you need to earn a living.

• In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
• In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.

• Is your home equity within the homestead limit, or does it exceed the cap?
• Do you have a vehicle loan that reduces your equity below the exemption?
• Are there assets that could be reclassified or converted to exempt form before filing?
• Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?