Utah Bankruptcy Filings: Chapters, Means Test, and Exemptions

To file bankruptcy in Utah, you submit a petition and supporting schedules to the U.S. Bankruptcy Court for the District of Utah, which sits at the Frank E. Moss U.S. Courthouse in Salt Lake City. Before you file, you have to complete an approved credit counseling course and decide which chapter fits your situation. Most individuals choose Chapter 7, which discharges qualifying debt in roughly four months, or Chapter 13, which reorganizes debt into a three-to-five-year repayment plan.1United States Courts. Discharge in Bankruptcy

Decide Between Chapter 7 and Chapter 13

Chapter 7 is a liquidation. A court-appointed trustee reviews your assets, sells anything not protected by a Utah exemption, and distributes the proceeds to creditors. In return, most unsecured debts such as credit cards and medical bills are wiped out, usually about four months after filing.

Chapter 13 is a repayment plan. You propose a plan that pays creditors over three years if your household income is below Utah’s median for your family size, or five years if it is at or above the median. Whatever qualifying debt remains at the end is discharged. Chapter 13 is often the better fit if you have home equity above Utah’s exemption limits or you are behind on a mortgage and want to catch up through the plan.1United States Courts. Discharge in Bankruptcy

The Means Test

To file Chapter 7 you have to pass the means test. On Official Form 122A-1 you report your household income over the six months before filing, annualized, and compare it against Utah’s median family income.2United States Courts. Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1)

For cases filed on or after April 1, 2026, Utah’s median income figures are:

  • One earner: $87,898
  • Household of two: $95,757
  • Household of three: $112,751
  • Household of four: $131,741
  • Each additional person: add $11,100

Below the median, you pass and can proceed with Chapter 7. Above it, you complete Form 122A-2, which subtracts allowable expenses from your income. Failing the means test does not block you from bankruptcy; it channels you into Chapter 13 instead.3United States Department of Justice. Median Family Income – On or After April 1, 2026

Complete the Pre-Filing Credit Counseling Course

Every individual filing bankruptcy in Utah has to finish a credit counseling course from an agency approved by the U.S. Trustee’s office within the 180 days before filing.4United States Bankruptcy Court District of Utah. Pre-Filing Credit Counseling Requirement Courses are offered online, by phone, or in person, and most approved providers charge about $20 per household. The agency issues a certificate when you finish, and that certificate goes to the court with your petition. Without it, the clerk will dismiss your case.

A few people are exempt: those who are mentally incapacitated, disabled, or on active duty in a combat zone. A temporary waiver is also available if you contacted an approved agency but could not get an appointment within seven days and you face an emergency, such as an imminent foreclosure, that justifies filing immediately. You file a certification describing the circumstances and the court decides.

Gather Your Financial Documents

Pulling your records together before you start the forms is the single biggest time saver in a bankruptcy case. The court needs a clear picture of your income, assets, and debts, and missing documents will stall your case or sink it.

  • Pay stubs or other proof of income for the full six months before filing, which feed directly into the means test
  • Your most recent federal tax return or transcript, which must go to the assigned trustee before your meeting of creditors5Office of the Law Revision Counsel. 11 USC 521 – Debtor’s Duties
  • Bank statements for every checking, savings, and investment account
  • A complete list of every creditor with legal names, mailing addresses, and account numbers
  • Documentation of major assets, including real estate deeds, car titles, and proof of insurance

Leaving a creditor off the list has real consequences. A debt you fail to schedule can survive the bankruptcy entirely if the creditor never received notice of the case.6Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge

Fill Out the Petition and Schedules

The lead document is the Voluntary Petition for Individuals (Official Form 101), which identifies you, the chapter you are filing under, and your basic eligibility.7United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy The schedules go with it:

  • Schedules A/B list what you own: real estate, vehicles, bank accounts, household goods, and personal belongings
  • Schedule D lists secured debts such as mortgages and car loans
  • Schedules E/F capture unsecured debts: credit cards, medical bills, personal loans
  • Schedules I and J lay out your monthly income and expenses

The Statement of Financial Affairs rounds out the package by documenting your recent financial history: payments to creditors, property transfers, lawsuits, and income sources over the past two years. All forms are available on the federal judiciary’s website. Check your figures against your bank statements and pay stubs before you file. Errors and omissions in these schedules cause most of the problems that come up later.

Pay the Filing Fee or Apply for Relief

A Chapter 7 case in Utah costs $338 to file. A Chapter 13 case costs $313.8United States Bankruptcy Court. Filing Fees The court accepts money orders and cashier’s checks from filers, not personal checks.

If you cannot pay the full amount upfront, you have two options. You can apply to pay in installments using Official Form 103A filed with your petition; the application lists the dates and amounts of each installment, and the court generally allows payments spread over four to six months. Missing a payment can result in dismissal. The second option is a full fee waiver, available only in Chapter 7, if your household income is below 150% of the federal poverty guidelines and you cannot afford installments either. You request it on Official Form 103B.9United States Courts. Application to Have the Chapter 7 Filing Fee Waived Chapter 13 filers must pay, but installments are still available.

The completed package is filed with the Clerk of Court at the Bankruptcy Court in Salt Lake City. Attorneys file electronically through the court’s CM/ECF system.10United States Bankruptcy Court. Contact Us – US Bankruptcy Court District of Utah

What Happens the Moment You File

As soon as the clerk accepts your petition, a federal protection called the automatic stay takes effect. It halts almost all collection activity against you: lawsuits, wage garnishments, foreclosure proceedings, repossession attempts, and creditor phone calls. The stay also blocks creditors from creating or enforcing liens and stops the IRS from continuing Tax Court proceedings for pre-filing tax years.11Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay

Repeat filers get less protection. If you had a bankruptcy dismissed within the past year, the stay in your new case expires after 30 days unless you file a motion and persuade the court the new case was filed in good faith. If you had two or more cases dismissed within the prior year, no stay goes into effect at all; you have to ask the court to impose one.

Attend the 341 Meeting of Creditors

Between 21 and 60 days after you file, you will attend a Section 341 meeting of creditors. The meeting is run by your trustee, not a judge, and you answer questions under oath about your petition.12United States Department of Justice. Section 341 Meeting of Creditors Despite the name, creditors rarely show up. The questions are usually straightforward: Is everything in your petition accurate? Have you transferred any property recently? Do you own anything you did not list?

Bring a government-issued photo ID and proof of your Social Security number. The trustee may also ask to review bank statements, pay stubs, tax returns, car titles, or real estate deeds. Showing up without the right documents typically means the meeting gets rescheduled, which delays your whole case. Child support obligations and filing without an attorney trigger additional paperwork.

Know What Utah Lets You Keep

Utah has opted out of the federal bankruptcy exemptions, so you must use Utah’s state exemption scheme to protect property. You do not get to pick whichever set is more generous.13Utah Legislature. Utah Code 78B-5-513 – Exemption Provisions Applicable in Bankruptcy Proceedings

The homestead exemption is the biggest one. Under Utah Code 78B-5-503, an individual can protect up to $42,000 in equity in a primary residence, and married couples filing jointly can protect up to $84,000 per household. For property that is not a primary residence, the exemption is $5,000 per individual or $10,000 per household.14Utah Legislature. Utah Code 78B-5-503 – Homestead Exemption

Utah law also protects categories of personal property that are reasonably necessary for daily life, including household furniture, appliances, and clothing. A motor vehicle used for primary transportation and tools needed for your profession receive exemptions as well.15Utah Legislature. Utah Code 78B-5-505 – Property Exempt from Execution If your equity in any asset exceeds the applicable exemption, the Chapter 7 trustee can sell it, pay you the exempt amount, and distribute the rest to creditors. In Chapter 13 you keep all your property.

Finish Debtor Education and Receive Your Discharge

The pre-filing counseling course is only the first educational requirement. After filing, you also have to complete a personal financial management course before the court will grant your discharge. Fail to finish it and the court can deny the discharge entirely.16Office of the Law Revision Counsel. 11 USC 727 – Discharge The deadline to finish the course and file your certificate is 60 days after your 341 meeting. The course is offered online by approved providers at roughly the same cost as the first one.

Once requirements are met, timing depends on the chapter. In Chapter 7, the discharge order usually arrives about four months after filing. In Chapter 13, discharge comes after you complete all plan payments, generally three to five years out.1United States Courts. Discharge in Bankruptcy

Debts a Utah Bankruptcy Will Not Erase

Federal law carves out categories of debt that survive discharge in either chapter.6Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge The major ones:

  • Domestic support obligations, including child support and alimony
  • Most student loans from government or nonprofit lenders, unless you can prove undue hardship
  • Recent income taxes that were properly assessed, and taxes where the return was filed late, fraudulently, or not at all
  • Debts obtained through false pretenses or a materially false financial statement
  • Liability for death or personal injury caused by driving while intoxicated
  • Criminal fines, penalties, forfeitures, and restitution
  • Debts you failed to list in your schedules, unless the creditor had actual knowledge of your case

The unlisted-debt rule is the one worth watching, because it is entirely avoidable. A thorough creditor list during the document stage keeps debts from surviving your bankruptcy by default.