Filing Chapter 7 Bankruptcy in Utah (2026)
Reviewed by DocDraft Legal Team · Utah · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Utah. Utah is an opt-out state: under Utah Code 78B-5-513 you must use Utah's exemptions and cannot choose the federal 522(d) list. This page explains Utah's homestead exemption under Utah Code 78B-5-503, the motor vehicle and tools-of-trade limits under 78B-5-506, wage protection under 70C-7-103, the means-test median income, and the U.S. Bankruptcy Court for the District of Utah where all Utahns file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or spousal support.
Does Utah use state or federal bankruptcy exemptions?
Utah is an opt-out state. Under Utah Code 78B-5-513, a debtor filing bankruptcy in Utah may not use the federal 11 U.S.C. 522(d) exemption list and must instead use Utah's own exemptions under the Utah Exemptions Act. The only narrow exception is for someone who was a nonresident of Utah for the 180 days before filing.
Can I keep my house if I file Chapter 7 in Utah?
Often yes. Under Utah Code 78B-5-503, Utah's homestead exemption protects a base of $53,700 in equity in a primary personal residence, and joint owners can each claim it. The State Auditor adjusts it yearly for inflation, and joint owners can each claim it, so a couple can protect up to $107,400. If your equity fits within it, Chapter 7 generally lets you keep the home.
Can I keep my car if I file Chapter 7 in Utah?
Usually yes if your equity is modest. Utah Code 78B-5-506 exempts up to $5,000 in one motor vehicle. Tools of your trade, including a work vehicle no other exemption covers, are separately exempt up to $5,000. If your car equity is at or below the limit, the vehicle is protected; equity above it may be reachable.
What is the income limit to file Chapter 7 in Utah?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Utah are $87,898 for one earner, $95,757 for two, $112,751 for three, and $131,741 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Utah's Opt-Out Rule, the 78B-5-503 Homestead, and the District of Utah Court
Utah is a bankruptcy opt-out state. Under Utah Code 78B-5-513, a debtor filing in Utah must use Utah's exemptions and cannot elect the federal 11 U.S.C. 522(d) set, unless the debtor was a nonresident of Utah for the 180 days before filing. The headline protection is the homestead under Utah Code 78B-5-503: a base of $53,700 in equity in a primary personal residence (and $6,400 for property that is not a primary personal residence), amounts the State Auditor adjusts annually for inflation and that joint owners can each claim, effectively doubling protection for a couple. Utah exempts up to $5,000 of equity in one motor vehicle and up to $5,000 in tools of the trade under Utah Code 78B-5-506, and provides targeted personal-property and retirement exemptions under 78B-5-505 rather than a broad cash wildcard. Wages are protected under Utah Code 70C-7-103, which limits garnishment to the lesser of 25 percent of disposable earnings or the amount above 30 times the federal minimum wage. Utah is a single federal judicial district, so every Utahn files in the U.S. Bankruptcy Court for the District of Utah.
Relevant Laws
Utah Homestead Exemption (Utah Code 78B-5-503)
Sets Utah's homestead exemption, protecting a base of $53,700 in equity in a primary personal residence and $6,400 in property that is not a primary residence, adjusted annually for inflation by the State Auditor. Joint owners may each claim it. This is the exemption that lets many Utah homeowners keep their house in Chapter 7.
Utah Opt-Out From Federal Exemptions (Utah Code 78B-5-513)
Utah's opt-out statute. It provides that a debtor in a bankruptcy proceeding may not exempt the property specified in 11 U.S.C. 522(d), forcing use of Utah's own exemptions, except for a debtor who was a nonresident of Utah for the 180 days before filing.
Utah Motor Vehicle and Tools-of-Trade Exemption (Utah Code 78B-5-506)
Exempts up to $5,000 of equity in one motor vehicle and, separately, up to $5,000 in implements, professional books, and tools of the debtor's trade, including a work vehicle to which no other exemption applies. Related personal-property and retirement exemptions appear in Utah Code 78B-5-505.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Utah has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Utah Chapter 7 Exemption Table
Homestead
Utah Code 78B-5-503: a base of $53,700 in equity in a primary personal residence, and $6,400 in property that is not a primary personal residence, adjusted annually for inflation by the State Auditor. Joint owners may each claim the exemption. Joint owners may each claim it, so a couple can protect up to $107,400.
Motor vehicle
Utah Code 78B-5-506(1): up to $5,000 of equity in one motor vehicle. Equity above the limit may be reachable by the trustee, and recreational and off-highway vehicles are excluded from this specific exemption.
Wildcard
Utah has no broad cash wildcard. Utah Code 78B-5-505 instead lists specific protected items rather than a general dollar amount you can apply to any property, so filers rely on the targeted homestead, vehicle, tools, and personal-property exemptions.
Personal property and tools of trade
Utah Code 78B-5-505 exempts specified household furnishings, appliances, clothing, food and fuel for the household, and certain other necessities. Utah Code 78B-5-506(2) separately exempts up to $5,000 in implements, professional books, and tools of the debtor's trade.
Wages
Utah Code 70C-7-103 limits garnishment to the lesser of 25 percent of disposable weekly earnings or the amount by which those earnings exceed 30 times the federal minimum wage. Filing Chapter 7 also triggers the automatic stay, which pauses most active wage garnishment.
Retirement
Utah Code 78B-5-505 exempts qualified retirement plans and accounts, including certain pensions, profit-sharing, and IRA-type accounts, from the bankruptcy estate. ERISA-qualified plans are separately excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current Utah means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Utah median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $87,898 for one, $95,757 for two, $112,751 for three, and $131,741 for four, adding $11,100 per additional person.
Value your home equity against the Utah homestead
Before preparing your schedules days after startingThe Utah Code 78B-5-503 homestead base of $53,700 for a primary residence is adjusted annually for inflation and republished by the State Auditor each January. Verify the exact current-year figure, and remember joint owners can each claim it, before deciding whether your home equity is fully protected.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Utah and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and Utah exemption claims in the U.S. Bankruptcy Court for the District of Utah, the single federal district covering the state. Filing triggers the automatic stay that pauses collection and garnishment. An attorney can help if any exemption is contested.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Utah means-test median income | Check your household size against the U.S. Trustee Utah median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $87,898 for one, $95,757 for two, $112,751 for three, and $131,741 for four, adding $11,100 per additional person. | - | Before you file |
| Value your home equity against the Utah homestead | The Utah Code 78B-5-503 homestead base of $53,700 for a primary residence is adjusted annually for inflation and republished by the State Auditor each January. Verify the exact current-year figure, and remember joint owners can each claim it, before deciding whether your home equity is fully protected. | - | Before preparing your schedules |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Utah and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Prepare and file your petition and schedules | File your petition, schedules, and Utah exemption claims in the U.S. Bankruptcy Court for the District of Utah, the single federal district covering the state. Filing triggers the automatic stay that pauses collection and garnishment. An attorney can help if any exemption is contested. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. | - | Before discharge |
Frequently Asked Questions
Under Utah Code 78B-5-503, Utah protects a base of $53,700 in equity in a primary personal residence and $6,400 in property that is not a primary residence. The State Auditor adjusts these amounts annually for inflation, so confirm the current figure before filing. Joint owners can each claim the exemption, which effectively doubles protection for a couple.
Generally yes. Utah Code 78B-5-505 exempts tax-qualified retirement plans and IRAs, and ERISA-qualified plans such as 401(k)s are excluded from the bankruptcy estate under federal law. These protections usually let you keep your retirement savings in a Utah Chapter 7 even though Utah has no broad cash wildcard.
No. Chapter 7 in Utah discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Utah is a single federal judicial district, so every Utah filer uses the U.S. Bankruptcy Court for the District of Utah, headquartered in Salt Lake City. You file where you have lived for most of the prior 180 days, and because there is only one district in Utah, that is always this court.
Under Utah Code 70C-7-103, a garnishment cannot take more than the lesser of 25 percent of your disposable weekly earnings or the amount by which those earnings exceed 30 times the federal minimum wage. This wage protection carries into bankruptcy, and filing Chapter 7 triggers an automatic stay that pauses most active wage garnishment.
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