Bankruptcy in Utah
Utah residents have access to powerful legal tools that can give them the space to breathe. Furthermore, bankruptcy may offer the chance to discharge certain debts or restructure payments.
Utah’s bankruptcy process also comes with state-specific exemptions that may allow you to protect your home, vehicle, or retirement accounts.
But navigating the system alone can be overwhelming. Knowing which chapter to file and what steps to take next is not always straightforward.
That’s where we come in. If you’re ready to explore bankruptcy, we can connect you with a Utah-based attorney. Don’t wait until things spiral further—get the legal support you need to start fresh.
Types of Bankruptcy in Utah
Bankruptcy is a legal remedy designed to help both individuals and businesses reset their financial footing. It allows qualified filers to eliminate some or all of their debts, depending on the type of bankruptcy.
That said, not every debt can be wiped away. Certain obligations—like child support, alimony, student loans, and past-due taxes—are generally excluded from discharge.
If you’re behind on payments and running out of options, you may be eligible to file under Chapter 7, 11, or 13.
In Utah, all bankruptcy cases are overseen by the United States Bankruptcy Court for the District of Utah. Additionally, hearings are occasionally held in St. George at the Utah State 5th District Courthouse, depending on case needs.
Chapter 7 Bankruptcy
For many people, Chapter 7 bankruptcy offers a clean break and a chance to rebuild after financial hardship. It can discharge a wide range of unsecured debts, giving you a much-needed reset. But before moving forward, it’s important to take a close look at your income, assets, and overall ability to repay what you owe.
Most people who qualify for Chapter 7 have little to no steady income or have gone through a major financial setback. While this type of bankruptcy can wipe out certain debts, it may require you to give up property that isn’t protected by state exemptions.
Once you file, an automatic stay goes into effect, stopping most collection efforts like foreclosure, wage garnishment, or creditor lawsuits.
To determine eligibility for Chapter 7 bankruptcy in Utah, you’ll need to complete a means test—a financial assessment comparing your income to the state’s median for a household of your size. As of 2025, the median annual income thresholds in Utah are:
- 1 person: $82,581
- 2 people: $92,694
- 3 people: $109,600
- 4 people: $124,188
- For households larger than four, add $11,100 for each additional member
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a more involved process than other forms of debt relief. As a result, usually, businesses take advantage of it.
Rather than wiping out debt or following a fixed repayment schedule, Chapter 11 focuses on restructuring what you owe through a court-approved plan. This plan usually stretches over four to 18 months, though the timeline can vary based on your case.
Filing for Chapter 11 bankruptcy involves a detailed and paperwork-heavy process. The court requires full transparency about your financial condition and a plan for how you intend to repay.
You’ll need to gather and submit several key documents. Required filings include:
- Voluntary Petition for Chapter 11
- Schedule of Assets and Liabilities
- Schedule of Current Income and Expenditures
- Statement of Financial Affairs
- List of Creditors and Amounts Owed
- Executory Contracts and Unexpired Leases
- Disclosure Statement (explaining the reorganization plan)
- Reorganization Plan Proposal
Chapter 13 Bankruptcy
Chapter 13 bankruptcy—often called a wage earner’s plan—lets you reorganize your debts instead of eliminating them. In UT, once you file, the court appoints a trustee to review your income, assets, and overall financial health. Unlike Chapter 7, this option involves creating a structured repayment plan that usually spans three to five years.
How much you pay depends on your income level and the property you’re trying to keep. This approach can help you stay on top of your obligations without losing everything.
After filing, the court assigns a trustee to oversee your case and review your proposed repayment plan. You’ll need to show that your plan is realistic based on your income and expenses. Once approved, you make monthly payments to the trustee, who then distributes the funds to creditors.
The Bankruptcy Process in Utah
No one plans to file for bankruptcy—but if your debt is outpacing your income and you can’t realistically pay it off within five years, it might be time to take action.
Bankruptcy isn’t about giving up—it’s about protecting your future and creating a structured path toward financial recovery.
In Utah, the process begins with pulling together a complete snapshot of your finances. That includes your income, monthly expenses, outstanding debts, and a full list of your assets. The court uses this information to evaluate your eligibility and determine the best course forward. If anything is missing or inaccurate, it could delay your case or lead to outright denial.
One of the key benefits of filing in Utah is the availability of state-specific exemptions that can help protect your essential assets during the bankruptcy process.
Utah’s bankruptcy exemptions include:
- Homestead Exemption: Protects up to $52,400 of equity in your primary residence for single filers, and up to $104,800 for joint filers.
- Motor Vehicle Exemption: Allows you to exempt up to $3,000 of equity in one vehicle.
- Personal Property Exemptions: Includes household items such as furniture, appliances, clothing, and food storage, with specific value limits.
- Tools of the Trade: Exempts up to $5,000 worth of tools, books, and other items necessary for your profession.
- Retirement Accounts: Most tax-exempt retirement accounts, including 401(k)s, 403(b)s, and IRAs, are fully exempt under federal law applicable in Utah.
Work With an Experienced Utah Lawyer
If you’re a Utah resident struggling to keep up with mounting debt, bankruptcy may offer the relief you need to reset your financial future.
Whether you’re considering Chapter 7, 11, or 13, the process is designed to provide structure, protection, and a legal pathway toward stability. With strong state-specific exemptions and immediate relief from most collection actions, filing in Utah could give you the breathing room you’ve been looking for.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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