Utah Debt Relief

Utah Credit Card Debt law carries a Statute of Limitations (SOL) lasting 4 years for open-ended credit accounts. This time limit begins on the date of the first missed payment but will start over if the debtor makes any subsequent partial payments. Debtors who are served with a summons over debt should file an answer by certified mail within 20 days. Otherwise, the court will enter judgment for the creditor by default.

Judgment Enforcement

A Utah judgment stays enforceable for 8 years and becomes a lien against the debtor’s real property upon entry in the District Court. The interest rate in the credit contract will apply to judgments. The state allows for an individual homestead exemption of $10,000 and a joint homestead exemption of $20,000 for a primary residence. Smaller personal property exemptions are also allowed.

Wages can be garnished up to the lesser of 25% of disposable earnings or the amount exceeding 30 times the hourly federal minimum wage for the week.

Utah residents should take care in signing credit card agreements. If they contain a clause for “judgment by confession,” the creditor does not need to file suit to enforce a judgment. The creditor only needs to file an affidavit with the clerk of the court.

Debt Settlement

Consumers who arrange for Debt Settlement may avoid bankruptcy or seizure of their property and wages from court judgments. By setting up an interest free payment plan through Debt Settlement, consumers gain a say in their repayment plans without facing the embarrassment of wage garnishments.