Utah Homestead and Vehicle Exemptions in 2026: What You Can Keep in Bankruptcy

Submitted by Andrew T Curtis on October 16, 2026

Key points

Utah’s homestead exemption protects up to $52,400 of equity in your primary residence (the most recent figure published by the Utah State Auditor, for 2025; it is adjusted each January).
One motor vehicle is protected up to $3,000 in equity.
Utah is an “opt-out” state, meaning you must use Utah’s exemption list — you cannot choose the federal list instead.
Exemptions apply in both Chapter 7 and Chapter 13 bankruptcy.
The homestead amount changes each year, so always confirm the current figure before you file.

This article is general information, not legal advice for your situation.

One of the first questions people ask when they consider bankruptcy is: “What will I lose?” The answer, for most Utah residents, is: far less than you might expect. Utah law provides a set of exemptions — amounts of property value that creditors and the bankruptcy trustee cannot touch. Understanding these exemptions helps you plan your case and decide whether Chapter 7 or Chapter 13 fits your situation better.

What Is an Exemption?

An exemption shields a specific dollar amount of a particular type of property from your creditors. If an asset’s value falls within the exemption limit, you keep it. If the value exceeds the limit, a Chapter 7 trustee may sell the asset and give you the exempt portion in cash; Chapter 13 handles it differently, protecting most assets through your repayment plan.

Utah is an “opt-out” state under the federal Bankruptcy Code. That means you must use the exemptions that Utah law provides — you do not have the option of using the federal exemptions listed in 11 U.S.C. § 522(d). Utah’s exemptions are found primarily in Utah Code Title 78B, Chapter 5.

The Utah Homestead Exemption

Your home is likely your most valuable asset, and Utah’s homestead exemption exists to protect the equity you have built in it.

The most recent homestead figure published by the Utah State Auditor is $52,400 for an individual’s primary residence (for 2025; the figure is inflation-adjusted each year by the Utah State Auditor and published by January 1, per Utah Code § 78B-5-503). If two co-owners both qualify, the combined protection is $104,700 for 2025 (the confirmed State Auditor figure for joint ownership).

A smaller amount — $6,200 for 2025 — applies to real property that is not your primary residence, such as a vacation cabin or rental property you occupy part of the year.

What counts as a homestead? Your primary residence qualifies, whether it is a house, condominium, mobile home, or cooperative unit. The exemption covers equity — the difference between your home’s fair market value and what you still owe on it.

Do you need to file a declaration? Utah law does not require you to file a formal homestead declaration with the county recorder in order to have the protection. However, in a bankruptcy case you must properly claim the exemption on your bankruptcy schedules. Failing to list an exemption can cause you to lose it.

How it works in Chapter 7: If your home equity is under the exemption limit, the trustee has no reason to sell your home. You can typically keep it as long as you stay current on your mortgage payments. If your equity exceeds the limit, the trustee may sell the home, pay you the exempt amount, and distribute the rest to creditors.

How it works in Chapter 13: Chapter 13 lets you keep your home even if your equity exceeds the homestead exemption, as long as you pay creditors at least as much as they would have received in a Chapter 7. Your Chapter 13 repayment plan accounts for any non-exempt equity over three to five years.

The Utah Motor Vehicle Exemption

Transportation is essential, and Utah law recognizes that. Under Utah Code § 78B-5-506, one motor vehicle is protected up to $3,000 in equity per debtor.

If you own two vehicles and file an individual case, only one vehicle benefits from this exemption. A married couple filing jointly may each claim the $3,000 protection, covering up to two vehicles.

If your equity in the car is more than $3,000, the trustee in a Chapter 7 case may sell it, give you $3,000, and distribute the rest. If you owe close to or more than the car’s value, there may be little or no equity to worry about regardless of the exemption.

Other Important Utah Exemptions

The Utah exemptions list covers more than just your home and car. A few others worth knowing include:

Tools of the trade: Up to $5,000 in value for tools, books, and implements you use in your occupation (Utah Code § 78B-5-506).
Household furnishings: Sofas, beds, kitchen tables, and similar items used at home are protected up to $1,000 per item, with a total cap (Utah Code § 78B-5-506).
Clothing: Reasonable and necessary clothing for yourself and your family is fully exempt.
Health aids: Professionally prescribed health aids are fully exempt.
Retirement accounts: Most qualified retirement accounts — 401(k)s, IRAs, pensions — receive strong federal and state protection in bankruptcy.
Life insurance: The cash value of a life insurance policy may be exempt up to certain limits.

How Exemptions Affect the Decision Between Chapter 7 and Chapter 13

If all of your property fits within Utah’s exemptions, Chapter 7 is often the faster and simpler path. You can wipe out most unsecured debt — credit cards, medical bills, personal loans — in a matter of months, and you keep everything you own.

If you have property worth more than the exemption limits — especially home equity above the homestead amount — Chapter 13 may protect that property better. You keep it all and pay creditors the non-exempt value through a multi-year plan. Learn more about how Chapter 7 works and how Chapter 13 works on our main practice pages.

Your bankruptcy exemptions page explains the full list of Utah exemptions in more detail.

The Amounts Change Every Year

Utah Code § 78B-5-503 ties several exemption amounts to an inflation index. The Utah State Auditor recalculates and publishes the adjusted figures by January 1 of each year. The homestead base in the statute is $42,000 (set in 2019); the State Auditor’s January 2025 publication put it at $52,400. Because the number changes each year, we confirm the current figure for your case during your free consultation.

Ready to Learn More?

If you are carrying debt that feels unmanageable, a free virtual consultation can help you understand whether bankruptcy makes sense — and what you would be able to keep. Call 800-404-0018 or visit our free consultation page. We serve clients across Utah by phone and video, so you can meet with us from home.

Sources

Utah Code § 78B-5-503 (homestead exemption; inflation adjustment): le.utah.gov
Utah Code § 78B-5-506 (motor vehicle; tools of the trade): le.utah.gov
Utah State Auditor, homestead exemption values for 2025: auditor.utah.gov
Utah Code § 78B-5-513 (opt-out of federal exemptions): le.utah.gov
U.S. Bankruptcy Code § 522 (exemptions generally): uscode.house.gov
U.S. Bankruptcy Court for the District of Utah: utb.uscourts.gov

For information on how Lincoln Law serves clients across Utah by virtual consultation, visit our Utah bankruptcy attorneys page.