Bankruptcy Laws For Chapter 7 In Utah
Yup, you can keep your home in Utah.
Chapter 7 is the most common form of bankruptcy and goes by the common names of Fresh Start, Total Bankruptcy or Liquidation Bankruptcy. It usually takes about 3 1/2 months from beginning (the filing date) to forgiveness of debt (entry of the Notice of Discharge).
Forgiveness of Debt. In a Chapter 7 you are usually forgiven certain kinds of debts like credit cards, signature loans, medical debts, and auto repossession debts, even if you have been taken to court and had a judgment entered against you.
Some debts are not forgiven in a Chapter 7. These include student loans, some taxes, child support, alimony, criminal restitution, fraud, motor vehicle accidents caused by drugs or alcohol, and a few others.
Exempt Property. In return for this forgiveness of debt, you agree to keep only certain property (your "exempt" property), turning the rest of what you own (your "non-exempt property) over to your creditors.
One of the most important items you can keep is your homestead. That means your house or mobile home and a certain amount of land. Of course, if you still owe money on your homestead, you must continue to make the mortgage payments - you don't get a free house. Utah state law provides a limited list of exemptions (things you are allowed to keep), but here are some of the more common ones, again, property you are allowed to keep:
Up to $2,500 worth of an automobile beyond what is owed on it (but keep up the car payments).
Your washer, dryer, microwave, stove, refrigerator, freezer, sewing machine, carpets in use, beds and bedding, family clothing, and 12 months of provisions, as long as these items are not subject to a lien securing payment of a debt.
$1,500 worth of other household goods. That may not sound like much but we value everything at what it would bring at auction and not what it costs brand new.
Your 401(k) plan, IRA, KEOUGH or other ERISA qualified plan.
Any money you earn after you file your bankruptcy case.
http://www.utahbklaw.com/chapter_7_or_13.htm