Utah Laws and Legal Materials

Welcome to OVLG's Utah laws and legal information center. Learn about state debt collection laws, information on company formation, laws on Wills and trusts, and court information. Get links to state government websites and much more.

Debt relief option available in Utah

Debt management plan

A debt management plan helps people manage outstanding debts through one affordable monthly payment. Usually, a nonprofit credit counseling company handles the whole matter. The main benefits are a low interest rate, affordable single monthly payment, and no harm to credit score.

Debt settlement

You may settle your debts directly or take the help of a debt settlement company. However, this option may harm your credit score.

Debt consolidation loan

You may take out a personal low-interest loan. All you have to manage is a single monthly payment. With a strong credit, the loan interest rate would be lower.

Bankruptcy

This option helps you eliminate debts but lowers credit scores for 7-10 years. It is a legal process and needs help from a professional bankruptcy attorney.

Utah Debt Resources

• Utah Homeless Prevention Program

  It pays $700 per family for one month's mortgage, $450 for rent, and $300 for utilities.

• Family Employment Program

  It provides temporary monetary assistance for up to 36 months.

• Utah Section 8 Voucher Program

  It helps low-income families and individuals find safe, affordable housing.

• Utah Home Energy Assistance Target Program

  It helps low-income households with winter utilities.

• Utah Children’s Health Insurance Program

  This program covers uninsured children until age 18. Family premiums and co-pays cannot exceed 5% of annual income.

• Utah Employment Support Child Care Program

  It helps employed parents pay for childcare.

Utah debt collection laws

What rights do you have when collectors call?

Debt collection agencies must follow the Fair Debt Collection Practices Act. As per the law, a collection agency may not:

• Call you before 8 a.m. or after 9 p.m.
• Call frequently during the day
• Contact you if you hire an attorney for the issue
• Destry your properties, your goodwill
• Garnish or sell your property
• Use abusive language or threats
• Threaten to arrest you
• They can't involve the law enforcement officers

How do you be sure that you owe the debt?

Send a written letter to the collection agency. You must ask them to provide proof of the bill. They shouldn't contact you until they give you proof of the bill.

Can collectors contact others about my debt?

Collection agencies often call debtors' families or neighbors. They can call them following the law:

• Collection agencies can't disclose the debt amount to others.
• They can be limited calls to customer residences or workplaces.

Collection agencies who do not follow this law may face legal consequences. Stop collectors from calling at work. Inform them that your employer does not allow such calls.

How do I stop collector calls?

Inform the collection agency in writing to stop contacting you. If they don't stop, you may sue them for damages. Consumers can file a complaint with the FTC or the Consumer Financial Protection Bureau.

What happens if I receive a summon?

You must reply to the court summons within the deadline. You can use the answer form available on Utah Courts' website.

Where can I receive collection help?

Call the Utah State Bar Lawyer Referral Service at 1-800-698-9077 or (801) 531-9075. If you have questions, call Utah Legal Services at (801) 328-8891 in Salt Lake or 1-800-662-4245 statewide.

Does Utah need debt collection licenses?

The Utah legislature amended the Collection Agency Act with House Bill 20 on March 13, 2023. It eliminates most of the Collection Agency Act, including the requirement for a collection agency to register with the Utah Department of Commerce.

Visit the Utah State Legislature's website for more details.

The Utah statute of limitations

Utah has a six-year statute of limitations on debt collections.

• Know more about debt consolidation
• Know more about debt settlement

Additional legal resources for consumers

• Utah state debt collection laws
• Payday loan laws in Utah
• FDCPA
• Debt collection abuse

Utah bankruptcy laws

How Does Utah Bankruptcy Work?

In most ways, Utah bankruptcy filing is similar to other states. Federal law controls bankruptcy that unwinds your contracts with creditors. However, you can keep your properties in bankruptcy as per Utah law.

What Does Utah Bankruptcy Cost?

• The filing fee for Chapter 7 is $338
• The filing fee for Chapter 13 is $313
• Credit counseling and debt management courses cost $50–75

For Chapter 7 cases, a bankruptcy attorney may charge $1,500 to $2,500 upfront. For Chapter 13, you might pay $1,000 to $1,500 in legal fees.

How can you qualify for Chapter 7 or Chapter 13 bankruptcy in Utah?

Qualifications for Chapter 7

• Your family's gross income should be less than the state median income.
• If your gross income is higher, you may qualify after the second "means test."
• If you can't afford Chapter 13 after expenditures, you'll qualify for Chapter 7.

Chapter 13 bankruptcy requirements

To qualify, pay the larger of:

• your primary nondischargeable debt
• nonexempt property
• disposable income

What Are the Bankruptcy Exemptions in Utah?

• Utah Homestead Exemption (Utah Code Ann. § 78B-5-504.)
• Utah Motor Vehicle Exemption (Utah Code Ann. § 78B-5-506(3).)
• Personal property (Utah Code Ann. §§ 78B-5-505, 506).
• Pensions (Utah Code Ann. § 49-11-612).
• Public benefits (Utah Code Ann. § 63-25a-421(4))
• General assistance (Utah Code Ann. § 35A-3-112)
• Occupational disease disability benefits (Utah Code Ann. § 34A-3-107)
• Unemployment compensation (Utah Code Ann. § 34A-3-103(4)(b))
• Veteran's benefits (§78B-5-505(1)(a)(v));
• Workers' compensation (Utah Code Ann. § 34A-2-422)
• Tools of the trade (Utah Code Ann. § 78B-5-506(2).)
• Wages (Utah Code Ann. § 78B-5-505(1)(a)(xvi)).
• Insurance (Utah Code Ann. § 78B-5-505(1)(a)(iii) and (iv))
• Fraternal benefit society benefits (Utah Code Ann. § 31A-9-603)
• Life insurance policy cash surrender value, except payments made within the year (Utah Code Ann. § 78B-5-505(1)(a)(xiii))
• Life insurance proceeds for the insured's spouse or dependent (Utah Code Ann. § 78B-5-505(1)(a)(xi)).
• Alimony (Utah Code Ann. §§ 78B-5-505(1)(vi), (vii).)

Know more about

• Utah’s bankruptcy
• Utah Department of Justice contact details
• Utah bankruptcy court locations

Company formation in Utah

How do I Form a Company in Utah?

You can follow these steps to form a company:

• Choose a name for your Company - The name should be unique. You should also use abbreviations like "corporation," "corp," "inc," "ltd," etc.
• Choose a Registered Agent - As per Utah Code § 16-7-15, you must appoint a registered agent before filing the Articles of Incorporation.
• Submit Articles of Incorporation - The Utah Department of Commerce, Division of Corporations, and Commercial Code must approve the Articles of Incorporation. You may send your Articles of Incorporation by mail or submit it directly. The filing fee is $54.
• Get an EIN - Get your company EIN or FEIN. It helps to identify companies on income tax returns.
• File the Beneficial Ownership Information Report - Most US companies must file a BOI Report with FinCEN.
• Draft your Corporate Bylaws - These are your company's internal rules.
• Call your Organizational meeting - It is important to organize The company's first meeting after formation.
• Open a Corporate Bank Account - It helps accept payments easily, pay bills, and store funds.
• File State Reports & Taxes - Utah companies must file an annual report. They also pay state income and franchise taxes.

Does Utah Need Business Licenses?

Yes, you need business licenses, permission, and a certificate to run a company in Utah. Depending on the nature of your work and location, you may need multiple licenses.

What is the cost of a Utah business license?

Utah business license costs may vary by city or county. Salt Lake City charges $100 for business license applications. Utah County charges $150 plus per-employee fees.

What do you do to dissolve your Utah company?

The Utah Division of Corporations & Commercial Code must receive the completed Articles of Dissolution form by mail, fax, or in person.

• Details of creating a Utah company

Utah wills and living trusts

How do Utah living trusts work?

Trustees can assign assets through their living trusts. After their death, the beneficiaries will inherit the assets as per the trust laws.

What is the cost of Utah trust formation?

A typical Revocable Living Trust costs $1,000–$3,000 in Utah. Complex trusts may cost more.

Is a trust better than a Will in Utah?

Wills are worse than trusts. You can distribute assets through trusts before or after death. You can avoid probate with a trust. However, a Will can assign non-trust assets to beneficiaries.

Are handwritten Wills permissible in Utah?

Utah Code Section 75-2-502 allows handwritten wills. You must sign your Will in front of two witnesses. Witnesses must also sign your Will within a specific time.

Do Utah trusts require probate?

Trusts do not need probate. Your heirs can avoid probate if you place all of your assets and properties in a trust. You might need probate if your estate comprises valuable real property (land, house, condo, mineral rights).

What invalidates Utah Wills?

• If the document is not signed correctly.
• If you have destroyed or changed the document.
• If, as the 'testator,' you don't have a sound mind.
• If you have made the Will under pressure.were

(Utah Code § 75-2-502)

• Know more about Utah Wills
• Know more about Utah living trusts
• Additional resources on Wills Utah

Additional State Legal Resources

• Utah State Bar Association
• Website of the State Attorney General Utah