What Are the Utah Bankruptcy Exemptions?

What Are Bankruptcy Exemptions and Why Are They Important in a Chapter 7 Bankruptcy? 

Bankruptcy exemptions help protect the things you own when you file for Chapter 7 bankruptcy. Though it’s rare, if you own any property that isn’t covered by exemptions, the bankruptcy trustee can take that property, sell it, and give the proceeds to your creditors. 

📄 When you fill out your bankruptcy forms, you’ll list the Utah exemptions that apply to your property. The more exemptions you can claim, the more you may be able to keep.

✨ If you use Upsolve’s free filing tool, it will guide you through the exemptions process as part of your form preparation. It just takes two minutes to see if you qualify.

Exemptions for Married Filers

👥 In Utah, if you’re married and filing jointly, you can double the exemption amounts for any property you and your spouse own together. For example, the exemption for dining and kitchen tables is $1,000 for an individual, but a couple can claim up to $2,000 if the table is jointly owned. 

If only one spouse owns the item, the doubling rule doesn’t apply. Keep this in mind if you and your spouse are filing for bankruptcy together.

Do You Have To Use Utah’s Bankruptcy Exemptions?

If you’ve lived in Utah for at least two years, then yes, you’ll need to use Utah’s state exemptions when you file for Chapter 7. Utah doesn’t allow residents to use the federal bankruptcy exemptions.

🛡️ That said, you may still be able to use certain federal non-bankruptcy exemptions, which can help protect things like wages and government benefits.

If this feels overwhelming, know that help is available! See if you’re eligible to use Upsolve’s free filing tool to get help preparing your bankruptcy forms, including which exemptions you can claim. 

🤝 You can also set up a free consultation with a bankruptcy attorney if you have questions about how to protect your property.

What Are Utah’s Bankruptcy Exemptions?

Bankruptcy exemptions in Utah fall into three main categories:

• 🏠 Real property, like your home or any land you own

• 🪑 Personal property, such as household items, furniture, and your car

• 💵 Money benefits, including wages, retirement accounts, and insurance

Real Property: The Utah Homestead Exemption

If you're filing for Chapter 7 bankruptcy on your own (as a single filer), you can protect up to $42,000 of equity in your primary residence. If you're married and filing jointly, that exemption doubles to $84,000, as long as you both own the home.

🔢 To figure out how much equity you have, subtract your mortgage balance from your home’s current market value.

If you don’t own a home but do own non-residential property (like a vacant lot or land), you can protect up to $5,000 of equity in that property. As with a primary residence, married couples filing jointly can double this amount to $10,000, provided they both own the property.

📌 Note: If you’re a homeowner, it’s best to get legal advice from a qualified bankruptcy attorney before filing your case. Upsolve’s tool is not a good fit for homeowners.

Source: Utah Code § 78B-5-503

Motor Vehicle Exemption

One of the most common questions people have when filing for bankruptcy is, “Will I be able to keep my car or truck?”

🚗 Utah has two exemptions that may help you protect your vehicle in Chapter 7 bankruptcy:

• Motor vehicle exemption: If you're filing alone, you can exempt up to $3,000 of equity in one vehicle (as long as it’s not a recreational vehicle). If you’re married and filing jointly, you can double this amount and protect up to $6,000 in equity for a shared vehicle.

• Tools of the trade exemption: If your vehicle is essential to your job, it may qualify as a tool of the trade. Utah’s tools of the trade exemption lets you protect up to $5,000 of work-related tools and equipment. This includes a vehicle, as long as you haven’t already claimed another exemption for it.

⚠️ Just be sure the vehicle is actually used in your main line of work if you're using this exemption.

Source: Utah Code § 78B-5-506(2)–(3)

Personal Property Exemptions

In addition to the motor vehicle and tools of the trade exemptions, Utah allows you to protect many kinds of personal property when you file for Chapter 7 bankruptcy.

🛏️ Unless otherwise noted, the full value of the following personal items is exempt under Utah law:

• Animals, books, and musical instruments used for reasonable personal or family purposes (up to $1,000 total)

• Beds and bedding for you and your dependents

• Burial plots for you and your family

• Carpets currently in use

• Clothing, excluding jewelry and furs

• Firearms (excluding curio or relic guns):

  • One handgun and up to 1,000 rounds of ammo

  • One shotgun and up to 1,000 rounds of ammo

  • One shoulder arm and up to 1,000 rounds of ammo

• Food provisions to feed your household for up to one year

• Freezer (one)

• Health aids reasonably necessary for you or a dependent

• Heirlooms and sentimental items (up to $1,000 total)

• Household furnishings (excluding tables and chairs listed separately) reasonably necessary for one household (up to $1,000 total)

• Kitchen and dining tables and chairs (up to $1,000 total)

• Microwave oven (one)

• Refrigerator (one)

• Sewing machine (one)

• Stove (one)

• Washer and dryer (one set)

• Works of art that either:

  • Depict you or your immediate family

  • Were created by you or your immediate family (Note: This doesn’t include art held as part of a business or trade.)

Sources: Utah Code §§ 78B-5-505 and 78B-5-506

Money Benefits

Utah law protects a wide range of financial benefits and income in Chapter 7 bankruptcy, especially those tied to public support, retirement, insurance, or hardship. 

These are often called "money benefits" or "intangible assets." Most of these are fully exempt, meaning you don’t have to give them up to the bankruptcy court.

Public Support, Compensation, and Other Protected Benefits

Many types of benefits meant to support your basic needs or compensate for a loss are protected in full. These protections are especially strong when the money comes from government programs, court-ordered support, or insurance payouts tied to personal injury or wrongful death.

💰 Unless otherwise noted, the following types of money benefits are fully exempt:

• Alimony and child support

• Crime victim compensation

• Disability benefits (including SSDI and long-term disability)

• Fraternal benefit society benefits

• Health and hospital benefits

• Occupational disease or illness-related benefits

• Personal injury compensation (if it’s for medical bills, lost wages, or pain and suffering)

• Public assistance and general welfare benefits

• Unemployment compensation

• Veterans benefits

• Workers’ compensation

• Wrongful death compensation (if you or a dependent relied on the person who died)

Sources: Utah Code §§ 78B-5-505, 31A-9-603, 34A-2-422, and 63M-7-501 et seq.

Retirement Accounts and Life Insurance

Long-term financial protections — such as retirement funds and life insurance — are also exempt in bankruptcy. These assets are treated differently because they're meant to support you or your family in the future, not provide immediate cash.

Some of these include:

• Employer-sponsored retirement accounts like 401(k)s, 403(b)s, pensions, etc.: fully protected if contributions were made more than 12 months before filing

• IRAs and Roth IRAs: exempt up to the federal limit, which is $1,711,975 as of 2025

• Unmatured life insurance policies: protected if you’ve owned the policy for over a year and haven’t pledged it as collateral

• Life insurance cash value: protected if the policy has been in place for at least a year and wasn’t recently funded

• Life insurance proceeds: protected if paid to a spouse or dependent and needed for their support

Sources: Utah Code § 78B-5-505(1)(a)(xi)–(xv); 11 U.S.C §§ 522(b)(3)(C), 522(n)

Education Savings Accounts

🎓 Utah lets you protect up to $200,000 in 529 college savings accounts in bankruptcy. However, contributions made within 18 months of filing aren’t protected.

Source: Utah Code § 78B-5-505(1)(a)(xviii)

Wage and Earnings Protections

💲 Utah law allows you to protect a portion of your wages and unpaid earnings in bankruptcy. These protections are subject to two main limits:

• Ongoing earnings: You can protect the lesser of: • 75% of your disposable income • 37 times the federal minimum wage per week

• Unpaid wages: If you're owed wages at the time of filing, Utah law allows you to protect a portion of that income based on the state’s median income and how often you're paid.

Sources: Utah R. Civ. P. 64D(a); Utah Code § 78B-5-505(1)(a)(xvi)

Other Utah Exemptions

Unlike many other states, Utah does not offer a wildcard exemption. A wildcard exemption typically allows filers to protect property that doesn’t fall under any other specific exemption, up to a certain dollar limit.

Because Utah doesn’t have this type of exemption, you may not be able to protect certain assets unless they’re covered by another exemption category. If you want to keep property that isn’t exempt, you’ll likely need to pay the bankruptcy trustee the value of that item in your case.