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Am I reading this right? UT Wage Exemption

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    Am I reading this right? UT Wage Exemption

    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?)
    Jen
    "...and how is it that bankruptcy is considered an "easy" way out by some???"

    #2
    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.
    Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
    0% payback to unsecured creditors, 56 payments down, 4 to go....

    Comment


      #3
      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.
      filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

      Comment


        #4
        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.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment


          #5
          Thanks, you're right of course. Just seems very nitpickey of them to have any claim over earned but unpaid wages.
          filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

          Comment


            #6
            Originally posted by catleg View Post
            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.
            LadyInTheRed is in the black!
            Filed Chap 13 April 2010. Discharged May 2015.
            $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

            Comment

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