Utah Bankruptcy Exemption List
Secured vs. secured creditors and the Utah bankruptcy exemptions list
Claiming the Utah bankruptcy exemption list does not prevent secured creditors from foreclosing or repossessing when a valid purchase money security interest attaches to collateral. Exemptions protect debtors from unsecured claims and unrelated secured claims. The purpose of the Utah exemption list is intended to provide a modest level of basic necessities needed to survive, and become a productive taxpayer, despite all creditors who cry foul. Clearly, allowing creditors to remain free of restrictions when seizing property results in disaster. The legislature of the State of Utah is charge with responsibility for maintaining balance between these competing interests, through the establishment of fair, impartial, and just values for exemption allowances.
Secured and unsecured claim priority
Any property not covered by the Utah bankruptcy exemption list is subject to forfeiture. In most Chapter 7 cases, turn-over is rare, and seizure even more unlikely. For most debtors, careful review and planning when selecting the proper chapter produces the most favorable results. If forfeiture, seizure or surrender are likely, carefully consider all options with the assistance of a Utah bankruptcy attorney before taking any action.