Utah legislature increasing bankruptcy exemptions

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The Utah Legislature is about the pass a bill that increases the following exemption amounts for personal bankruptcy:

  • Increases homestead exemption from $20,000 to $30,000 per individual;
  • Increases vehicle exemption from $2500 to $3000 per individual;
  • Increases furniture and other items of personal property exemption from $500 to $1000;
  • Creates an exemption for firearms and ammunition up to $250 per individual;
  • Creates an exemption for unpaid earnings;
  • Creates an exemption for a motor vehicle used by an individual in the individual’s business, trade, or profession;
  • Permits certain nonresidents to use the federal exemptions.

Read more about the bill here. Expanding the bill to cover firearms and ammunition is a positive step. In my opinion, this bill does not go far enough to provide an exemption for home owners with a reasonable amount of equity in their home. Exemptions vary by state, and although Utah’s exemption will now be greater than the federal exemption, it is still far below neighbor states Idaho ($50,000 per individual), Colorado ($45,000), and Nevada ($350,000). That said, increasing the homestead exemption to $30,000 will help a huge number of Utahns in protecting their hard-earned money. 

Nobody wants to go through bankruptcy. Just like nobody wants to have their tonsils out. But- bankruptcy can be the tool that allows you to finally be able to step back and breathe again. Increasing bankruptcy exemptions is a positive step that will give people the opportunity to come out of bankruptcy with the tools necessary to build a successful and happy life. 

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About Jason

My name is Jason Richards, and I am an attorney in Northern Utah. I run my own practice and have offices in Ogden and North Salt Lake. I grew up in Ogden and attended local public schools. I graduated from the University of Utah Law School with a juris doctorate degree. My practice primarily centralizes on bankruptcy and debt collection. I also specialize in criminal defense and other areas of civil litigation. I represent clients who are suffering from crushing debt that seems hopeless. I have helped many people file for relief under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. I have also helped dozens of clients renegotiate their debt and defend them in debt collection actions with ruthless creditors. If not dealt with promptly and aggressively, creditors will achieve their goal to collect. Bankruptcy is certainly not the solution for everyone. Everybody's situation is different. The best way for you to determine if it is right for you is by consulting with a local bankruptcy attorney. Bankruptcy has helped millions of Americans receive a fresh start and financial independence.
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