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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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In Utah a tools of the trade exemption--78B-5-506(2)-- is given

Resolved Question:

In Utah a tools of the trade exemption--78B-5-506(2)-- is given for $3500. If a husband and wife run the business is this $3500 for each of them? If both run a business together and both are filing bankruptcy together, are they allowed $7000 in total business tools exemptions?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cortrightlaw replied 4 years ago.

cortrightlaw : No the exemption can only be taken once for a married couple and can not be doubled.
Customer:

(2) An individual is entitled to an exemption, not exceeding $3,500 in aggregate value, of implements, professional books, or tools of his trade.

Customer:

(b) An individual is entitled to an exemption, not exceeding $2,500 in value, of one motor vehicle.

Customer:

When my dad filed bankruptcy he was allowed two cars (one for each member of the marriage). As such, he was given $2500 total in exemptions. The business exemption says $3500 and says "An individual is entitled..."

Customer:

Why is the tools of the trade different from the car exemption in that it can't be doubled?

Customer:

Correction--I mean he was given $5000 in total exemptions for the cars

cortrightlaw : My apologize of you use the Utah exemptions you each can take the tools
cortrightlaw : Of the trade expedition in esence doubling the exemption.
cortrightlaw : You just need to make sure that you can clearly identify each of your tools and that you both participate in the business and each have separate tools to apply the exemption to. You do not want to be making false statements on your petition or in front of the bankruptcy trustee.
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