Bankruptcy in Utah (2026): Exemptions & Means Test

Bankruptcy is a federal process, but Utah is one of the roughly two-thirds of states that have opted out of the federal exemption list, so a Utah filer must use the Utah exemptions. Utah's homestead exemption is moderate by national standards and is recalculated every year for inflation, which is why the protected amount changes from one year to the next. The figures below are current as of mid-2026, and you should confirm the latest amounts before relying on them.

This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.

Does Utah use state or federal bankruptcy exemptions?

Utah is an opt-out state. Under 11 U.S.C. 522(b)(2), a state may bar its residents from using the federal exemptions, and Utah has done so in Utah Code 78B-5-513. A Utah-domiciled filer must use the state's exemptions in the Utah Exemptions Act and cannot elect the federal set in 11 U.S.C. 522(d). The narrow exception in the statute is for a person who has been a nonresident of Utah for the 180 days before filing, who may use the federal exemptions instead.

Residency rules under 11 U.S.C. 522(b)(3) generally require domicile in Utah for the 730 days before filing to use Utah's exemptions; if you moved recently, an earlier state's exemptions, or the federal set, may apply. Federal nonbankruptcy protections, such as Social Security and ERISA-qualified retirement plans, continue to apply regardless of the state list.

Utah's homestead exemption and annual indexing

Utah's homestead is set by Utah Code 78B-5-503, and the defining feature is that it is recalculated for inflation every year. The statute fixes base dollar amounts and then directs the Office of the State Auditor, beginning in 2020, to compute a new amount each year using the change in the Consumer Price Index and to publish the updated figures on its website by January 1. As a result, the protected amount creeps upward over time rather than staying fixed.

For 2026, the State Auditor's indexed amount for a primary personal residence is approximately $53,700 of equity, which a filer can claim in a home, mobile home, or associated water rights used as the primary residence. Real property that is not the filer's primary personal residence receives a much smaller homestead, roughly $6,400 for 2026. Because these numbers change every January, you should confirm the exact current figure from the State Auditor's published table for the year you file rather than relying on an older amount.

A few mechanics matter. The exemption protects equity, meaning value after mortgages and liens. The homestead does not defeat consensual liens like a mortgage or a properly recorded deed of trust, and the statute lists certain excepted obligations. Joint owners who each qualify may each claim a homestead in the property, which can effectively increase the protection on a co-owned primary residence.

Vehicle, tools of trade, and personal property

Utah's personal-property exemptions are set mainly in Utah Code 78B-5-505 and 78B-5-506:

• Motor vehicle: up to $3,000 of equity in one motor vehicle under Utah Code 78B-5-506(3).
• Tools of trade: up to $5,000 in implements, professional books, or tools of the trade, including a motor vehicle to which no other exemption has been applied that is actually used in the filer's business, under Utah Code 78B-5-506(2).
• Household furnishings: sofas, chairs, and related furnishings, and separately dining and kitchen tables and chairs, each up to $1,000 under 78B-5-506(1).
• Animals, books, and musical instruments for personal use, and heirlooms or items of particular sentimental value, each up to $1,000 under 78B-5-506(1).
• Clothing (other than furs and jewelry), food storage to last one year, beds and bedding, and certain benefits such as disability, illness, and unemployment compensation, under 78B-5-505.

Utah does not provide a broad cash wildcard like the federal list does. Filers protect property by fitting it into one of these specific categories, so the choice and valuation of assets is more deliberate than in states with a large wildcard. The motor-vehicle and tools-of-trade figures in 78B-5-506 are fixed dollar amounts; only the homestead in 78B-5-503 is indexed annually.

The Chapter 7 means test in Utah

The means test screens who can file Chapter 7. It first compares your household's current monthly income, annualized, against the median family income for a Utah household of the same size. If your income is at or below the Utah median, you generally clear this step. If it is above, you complete the longer calculation that deducts allowed living expenses to see whether you have disposable income that should fund a Chapter 13 plan.

The U.S. Trustee Program publishes the median figures. For cases filed on or after April 1, 2026, the Utah median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026, and the U.S. Trustee Program revises them about twice a year, so confirm the figures for your filing date.

Chapter 7 vs. Chapter 13 in Utah

Chapter 7 is a liquidation in which a trustee may sell non-exempt property to pay creditors. With Utah's moderate exemptions, a filer with substantial home equity above the homestead amount should look carefully at whether that equity is protected before choosing Chapter 7. Most remaining unsecured debt, like credit cards and medical bills, is discharged within about four to six months.

Chapter 13 is a reorganization for people with regular income. You keep your property and repay part or all of your debt over three to five years. It is often used by homeowners who are behind on a mortgage, because the plan can cure the arrears over time and stop a foreclosure, and by filers whose income is above the median or whose non-exempt equity is too high for Chapter 7.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection activity, including foreclosure, wage garnishment, repossession, and collection calls.

Where you file bankruptcy in Utah

Utah is a single federal judicial district, so all cases are filed in the U.S. Bankruptcy Court for the District of Utah. The main courthouse is in Salt Lake City, with additional proceedings handled in St. George for southern Utah. You file in the district where you have lived for the greater part of the last 180 days. Federal law requires approved credit counseling before you file and a debtor-education course before discharge.

What bankruptcy can and cannot do

Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a mortgage or car loan continue if you keep the collateral and keep paying.

Because Utah's homestead is moderate and changes every year, and because Utah has no general wildcard, the exact exemption figures for your filing year can meaningfully affect what you keep. Many people consult a licensed Utah bankruptcy attorney before filing.