Utah Bankruptcy Exemptions

Importance of Utah Bankruptcy Exemptions

Exempt and non-exempt assets only play a large role in Utah Bankruptcy Chapter 7. Exempt and non-exempt assets are not very important in Chapter 13 bankruptcy because the court does not take assets from the debtor.

The court will take any non-exempt assets when a debtor files Utah bankruptcy Chapter 7. The court then sells those assets and distributes the money between the debtor's creditors. Most people who file this type of Utah bankruptcy do not have many non-exempt assets and so will not lose very much during bankruptcy.

Determining Utah Bankruptcy Exemptions

The way that the Utah bankruptcy court determines whether an asset is exempt or not is by evaluation the equity in the asset. Equity is the amount that you can sell the asset for beyond what you owe on it. For example, if you could sell your house for $170,000 but only owe $155,000 on it, the extra $15,000 is the equity. When the equity in an asset is below a set limit then the asset is exempt.

Our Utah bankruptcy attorneys are often able to help our clients convert many of their non-exempt assets to exempt assets so that the court does not take them when our client files Utah bankruptcy. Determining whether an asset is exempt or not is often times confusing and difficult. Let us help you determine which of your assets are exempt and which might need to be converted.

Contact a Utah Bankruptcy Lawyer

Utah County Fresh Start has professional attorneys who will help you file Utah bankruptcy and still keep most, if not all, your assets. Fill out our Utah bankruptcy evaluation to learn which of your assets are exempt.

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