Bankruptcy exemptions allow you to keep some of your property in a Chapter 7 bankruptcy. Exemptions also lower the amount of money that you have to pay your creditors in a Chapter 13 bankruptcy.
Federal Exemptions vs. State Exemptions
In Utah, you cannot use any of the federal exemptions, but you can use the state exemptions. You are also allowed to use federal non-bankruptcy exemptions. These exemptions will protect your federal retirement account, and if you have veterans’ benefits, these will be protected.
Utah Bankruptcy Exemptions
The Utah Code allows for the following exemptions:
Life insurance proceeds, the life insurance policy, fraternal benefit society benefits, disability, medical, surgical, illness and hospital insurance.
Tools of Trade
Up to $5,000 worth of your tools or books used for your profession.
Workers’ Compensation, unemployment compensation, occupational disease disability benefits, general assistance and crime victims’ compensation
Several types of property may be declared exempt, such as animals, clothing, burial plots, artwork that a family member created, furniture worth up to $1,000, appliances, health aides, one year’s worth of food, heirlooms up to $1000, beds, carpets, bedding, books and musical instruments.
The items listed above are commonly chosen as exempt properties, but you will need a bankruptcy attorney Ogden Utah before you file for bankruptcy. You will meet with your Ogden bankruptcy attorney, and he will tell you if your property is exempt. An Ogden bankruptcy lawyer is needed throughout the process of filing for bankruptcy because you must make sure that you are filing correctly. People like to refrain from hiring a bankruptcy attorney Ogden because they believe that they are in enough financial trouble and that they can’t afford it.
The truth is that you can’t afford not to call us at Mountain View Law Group. We will make sure that you take all of the right steps as you file for bankruptcy.
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