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Am I Eligible To File Bankruptcy In Utah?

woman filing petition for bankruptcy at home

Understanding the eligibility requirements for Chapter 7 and Chapter 13 bankruptcy

When determining whether you qualify to file bankruptcy in Utah, the first step is identifying which chapter of bankruptcy you’re considering—Chapter 7 or Chapter 13. Each chapter has its own set of eligibility rules, so the requirements are not the same. Here’s a quick overview of the basic qualifications for each.

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Utah Chapter 7 Eligibility

To generally qualify for Chapter 7 bankruptcy, you must:

  • Have an income that is below the median for a household of your size.
  • Not have filed a Chapter 7 bankruptcy within the past 8 years.
  • Not have received a discharge in a Chapter 13 case filed within the previous 6 years.

If you meet these basic requirements, you may qualify to file for Chapter 7 bankruptcy.

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Utah Chapter 13 Eligibility

To generally qualify for Chapter 13 bankruptcy, you must:

  • Have a regular source of income, whether your income is above or below the median for your household size.
  • Owe less than $419,275 in unsecured debt.
  • Owe less than $1,257,850 in secured debt.
  • Not have filed a Chapter 7 bankruptcy within the last 4 years (although there are situations where filing Chapter 13 may still be appropriate).
  • Not have received a discharge in a Chapter 13 case filed within the past 2 years.

If you satisfy these general requirements, you are typically eligible to file Chapter 13 bankruptcy.

It’s important to remember that these are only the basic eligibility guidelines. Meeting the minimum requirements doesn’t automatically mean one chapter is the best option for your situation. Even if you qualify for Chapter 7, Chapter 13 may offer advantages depending on your financial goals, assets, or debts—and the opposite is also true. Speaking with an experienced bankruptcy attorney can help you determine which chapter is the right fit for your circumstances.

Brian D. Johnson

Managing Attorney – BDJ Express Law

With 26 years of experience, Brian D. Johnson guides Utah clients through bankruptcy and divorce with skill and compassion. A graduate of California State University, Long Beach (B.A., cum laude) and the University of Maine (J.D.), he is admitted to all Utah state and federal courts.

Recognized as an authority in bankruptcy and family law, Brian has lectured for the American Bankruptcy Institute and the National Business Institute. Clients rely on his knowledge and client-focused approach during life’s most difficult challenges.

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