Utah Bankruptcy Laws
Utah applies the same logic when it comes to bankruptcy cases as the other states in the United States. The state has the jurisdiction of governing the proceedings of the cases of bankruptcy laws in its geographical jurisdiction as well as making modifications on the exemptions that are provided for by the federal laws.
Utah Bankruptcy Exemptions:
The exemptions that are founded by the state may be advantageous over the federal exemptions since there are some local exemptions that the federal government may not cover. Just as other states, Utah has its own courts that deal with bankruptcy petitions and the median income computation. The chapter for a given case is filed under gives the debtor the chance to get protection on their assets by state or federal exemptions. Chapter 7 cases have the most exemptions since the assets of the debtor could be liquidated to settle debts with creditors. Other chapters allow the debtor to keep their assets as long as they meet certain set conditions by the state. Common exemptions include public benefits, alimony, homestead and insurance, but the values in Utah differ from any other region.
Utah Chapter 7 Bankruptcy Laws:
Every case that is presented in the Utah bankruptcy courts needs to be accessed in terms of income. The term that is used to define the test that income is put through is ‘means test’. This test is a comparison of incomes, the debtors versus the median income. The comparison is usually used to determine the type of case that the petition will be filed under. The basic rule when it comes to the means test happens to be if the income is lower than the median income, and then the cases are regarded as chapter 7 cases according to Chapter 7 bankruptcy laws.
Utah Chapter 13 Bankruptcy Laws:
When the income happens to be higher than the median income, then the case has to be filled under the other chapters such as chapter 13. Chapter13 bankruptcy laws are less flexible then chapter 7 bankruptcy.
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