Importance of Salt Lake Bankruptcy Exemptions
When you file bankruptcy under Utah bankruptcy laws, you want to ensure that you keep all or as many of your assets as possible. Utah bankruptcy exemptions protect certain property that cannot be taken in bankruptcy. The assets that you get to keep under are called exempt property. Non-exempt assets are assets that must be give to the bankruptcy trustee to be liquidated or sold according to Utah bankruptcy law and paid to your creditors. Exempt and non-exempt assets applies to both Chapter 7 bankruptcy and Chapter 13 bankruptcy. In chapter 13 bankruptcy, however, the debtor usually keeps all of their property–even if it is non-exempt and instead makes sure that the creditors receive the value of the non-exempt property.
Will I Lose All My Property In Bankruptcy
Many clients are initially concerned about losing all their property in bankruptcy. While it is true that in a Utah Chapter 7 bankruptcy, the court will take any non-exempt assets, sell those assets and distribute the money between the debtor’s creditors, most people who file under this Utah bankruptcy law do not have many non-exempt assets. As a result, this concern is usually minimal.
Determining Salt Lake Bankruptcy Exemptions
The Utah bankruptcy laws determine whether an asset is exempt by evaluating the equity in the asset. Equity is the amount that you can sell the asset for beyond what you owe on it. For example, if your home is worth $200,000 and you only owe $150,000, $50,000 is the equity. Equity in an amount less than what Utah bankruptcy law allows is exempt.
Our Utah bankruptcy attorneys are often able to help our clients convert many of their non-exempt assets to exempt assets so that the court does not take them when our client files Utah bankruptcy. Determining whether an asset is exempt or not according to bankruptcy laws Utah is often times confusing and difficult. Let us help you determine which of your assets are exempt and which might need to be converted.
Contact a Salt Lake Bankruptcy Lawyer
Our experienced bankruptcy attorneys can help you determine if you have any non-exempt debts. We can also help you determine if you can convert any of your non-exempt debt into exempt debts to maximize the assets that you can keep after filing for Utah Bankruptcy.
Completing our Free Utah Bankruptcy Evaluation today to understand how we can maximize the assets you can keep.