What Can You Keep in Bankruptcy?

What Can You Keep?

Bankruptcy is based on federal law. Congress, in agreement with the various state legislatures, left it up to the states to decide what you can keep. Utah is a middle of the road state which generally favors banking when it comes to what you can and cannot keep. The following information applies to collection entitlements of Unsecured Creditors (i.e. those creditors who don't have collateral backing your loan agreement such as credit cards, medical debt, personal loans, etc.).

Do Not get confused, however, regarding exemptions from Secured Creditors (those with collateral backing your loan agreement such as mortgages, car loans, etc.). You cannot avoid your debt to secured creditors in Chapter 7 except through surrendering the property, or sometimes arranging a workout. Chapter 13 gives you more options which we can discuss, including altering certain installment contracts. That Said, the following is a list of assets you are entitled to retain:

Homestead

Primary residence located within the State of Utah worth up to $40,000 for a family.
Primary residence located within the State of Utah worth up to $20,000 for a single adult.
Non-primary residence located within the State of Utah worth up to $5,000 if owned by a single adult, $10,000 for a joint-owned property.

Wages

75 percent of your earnings as long as it hasn't been deposited in your bank. We can explain that in your free initial consultation.

Automobiles

A vehicle worth up to $2,500, or a financed vehicle with no more than $2,500 equity.

Personal Property

Up to $500 of household furnishings (catch all).
Burial plot.
All healthy aids.
A washer and dryer.
A refrigerator, freezer, stove and microwave oven.
Sewing machine.
Carpeting.
Dining Set
Clothing, beds and bedding.
$3,500 worth of implements, books and trade tools.
IRS qualified retirement plans (except for contributions which have been made in the past 12 months).

Improving Your Financial Future

Your financial well-being won't take care of itself. While you may have sat through math class in school, there's a good chance no one taught you how to smartly manage your finances.

First, you need information on finances. These easy-to-use articles can provide information on how to help you manage your money and make smart financial decisions.

Living Financially Responsibly Find out that it’s not terribly difficult to live fiscally responsibly.

Protect & Improve Your Credit Learn how to manage and improve your credit rating.

How to Get a Fair Loan Be smart about the loans you choose.

Mortgages and Buying a Home

Dealing With Creditors: Know Your Rights Know your rights and learn how to deal with debt collectors.

Identity Theft Protect your good name and your finances.

Medical Bills and Bankruptcy

Prevent Bankruptcy Fraud Know the consequences to accidentally or purposely committing bankruptcy fraud.

DANIEL R. ROBISON, P.C. Can Explain Bankruptcy Law

Don’t let old debt drag you down. Explore your debt-relief options by speaking with a bankruptcy attorney today.