If you file for bankruptcy in Utah, the Utah homestead exemption protects some equity in your home. In this article, you'll learn about:
You'll find more information about protecting property with Utah bankruptcy exemptions in Filing for Bankruptcy in Utah.
Under the Utah exemption system, homeowners can exempt up to $43,300 of their home or other property covered by the homestead exemption, such as a mobile home. You can use the homestead exemption to protect more than one parcel of land, but you can protect only up to one acre total.
Also, you can exempt up to $5,100 in real estate that is not your primary residence. (Utah Code Ann. § 78B-5-504.)
If you file a joint bankruptcy with your spouse in Utah, you can double the homestead exemption to protect up to $60,000 in your home. Learn more about joint bankruptcy in Bankruptcy Options for Married Couples.
The homestead exemption applies to real property in Utah used for a residence, including your home. It also applies to your mobile home. You may also protect water rights if the water is used for domestic or irrigation purposes.
To use the $43,300 exemption to protect your home, it must be your primary personal residence. Utah law permits you to protect property that is not your primary personal residence, but if you don't live on the property, the exemption amount is limited to $5,100.
The homestead exemption also applies to sale proceeds for up to one year after the property is sold.
Some states allow bankruptcy filers to use the federal bankruptcy exemptions instead of the state exemptions. Utah is not one of those states. If you reside in Utah, you must use the state exemptions. Find out which exemptions you can use in bankruptcy.
In Utah, you must file a homestead declaration, a form filed with the county recorder's office to record your right to a homestead exemption to claim the homestead exemption.
Contact your county recorder for information on how to file a homestead declaration. Refer to the Utah Code Section 78B-5-504 for the information you must include in your homestead declaration.
In Utah, you cannot use the homestead exemption to protect your property from debts due to property taxes or assessments, purchase money loans, such as a mortgage, child support, or liens in which you contractually agreed a lender could file against your property.
Utah's homestead exemption is found in the Utah Code at Utah Code Section 78B-5-503. You can find the section of the Utah Code that contains the homestead exemption on the Utah State Legislature's website at utah.gov.
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated: April 4, 2022