Utah District Bankruptcy Rules

• Pay close attention to Utah-specific bankruptcy rules.Study image by FattaT from Fotolia.com
  
  The U.S. District Courts are the trial courts of the federal court system. Bankruptcy courts are separate units of the district courts. All bankruptcy cases must be filed here. If you are a Utah resident who is in serious debt, you have the option to file for bankruptcy protection in the Utah bankruptcy court.
  
  

Filing Chapter 7 Bankruptcy

• If you file a Chapter 7 bankruptcy case in Utah, you will need to pay a $299 filing fee as of June 2010 when you file your petition.The court will appoint a trustee to oversee your case. The trustee's job will be to conduct the first meeting of creditors, at which you will swear under oath that all information you have provided to the bankruptcy court is correct.
  
  

Means Test

• You must provide to the bankruptcy court information about your income for the previous six months. Your family income will be compared the median income of other families residing in Utah. In June 2010, median incomes as reported to the U.S. Census Bureau in Utah were: two-person families, $56,932; three-person families, $61,905; four-person families, $69,990; five-person families, $71,190; six-person families, $80,574; seven-or-more-person families, $79,855. If your income falls below this level, then you will be able to file for Chapter 7 bankruptcy. If not, the court will need further proof showing that you cannot pay your bills before you can file a Chapter 7 petition. If you cannot prove to the court that you should be able to file for Chapter 7, you may have to file for Chapter 13 bankruptcy in which you will pay your creditors off in a repayment plan spanning three to five years.
  
  

Property Exemptions

• The trustee who has possession of your property will separate that property into exempt and non-exempt categories. Property that is not exempt will be sold to pay some of your debts. The trustee will gather and sell as much of your property as possible to pay your creditors. Once your debts have been paid to the trustee's satisfaction, the remainder of your debt may be discharged. Exempt property cannot be sold by the trustee, therefore it is property you keep.
  
  

Utah Exemptions

• State have created their own list of exemptions. Property that is exempt from being sold in a bankruptcy case in Utah includes a homestead, with land not exceeding one acre, up to $20,000; proceeds from the sale of a homestead up to $20,000 for one year after receipt of purchase price; household appliances; family portraits; health aids; burial plot; disability, illness, unemployment, medical, veterans' benefits; child support; 75 percent of wages; certain civil judgment proceeds; retirement and death benefit plans; stock bonus, pension, profit-sharing; household furnishings to $500; kitchen furnishings to $500; animals, books, musical instruments to $500; heirlooms to $500; tools of debtor's trade to $3,500; work vehicle to $2,500.