Am I reading this right? UT Wage Exemption

[mom2crazies]

When I looked at the Utah wage exemption, it reads:

Wages

70C-7-103 - The greater of the following: Either 30 times the federal hourly minimum wage or minimum of 75% of disposable weekly income. Judge may approve more for low income debtor.

I am assuming this is in regards to a chapter 13 repayment plan.

1. Is this the same disposable income as calculated in schedule I/J?
2. Does this mean that they can only take up to 25% of just our disposable income for debt repayment (so if we have $100 left over, they can only take $25 and apply it to the plan?)

[momofthree]

No. This refers to what you can exempt when filing bk. It has nothing to do with your dmi calculations. You must pay 100% of your disposable income towards your ch.13 repayment plan.

[catleg]

Those sound like the exemptions in state court for wage garnishment.
Totally different from bankruptcy exemptions and have nothing to do with the ch13 plan payment amount.

[LadyInTheRed]

It's a BK exemption: http://www.thebankruptcysite.org/exemptions/utah.html

On the date you file, you might have earned but unpaid wages that you want to exempt. In a Chapter 13, any property that is not exempt creates a minimum amount that you must pay to unsecured creditors during the length of your plan. If you were filing Chap 7, the trustee could liquidate the non-exempt assets to distribute to creditors.

[catleg]

Thanks, you're right of course. Just seems very nitpickey of them to have any claim over earned but unpaid wages.

[LadyInTheRed]

Thanks, you're right of course. Just seems very nitpickey of them to have any claim over earned but unpaid wages.

Yes, it does seem extremely nitpickey.