Collections

Filing Suit in Utah
The filing fee to file suit for balances under $2,000 is $50.00. $2,000 to under $10,000 is $95.00, and over $10,000 or a non-specified amount is $155.00. The Utah legislature has set the cost that Constables and Sheriffs can charge to serve papers in the State of Utah . Service of a Summons and Complaint, Writ of Garnishment, Supplemental order and most other papers are $15.00 per paper, plus $1.50 per mile measured from the County Courthouse . Service of Bench Warrants, Orders of Restitution and Executions must be served by a Constable or Sheriff at a cost of $50.00 per paper plus $1.50 per mile. Utah Code § 17-22-2.5

Interest Rate
Any agreed upon interest rate will be enforced by the Utah Courts. Utah Code § 70C-2-101. However, the Utah Courts will not enter a default judgment awarding interest greater than 10% unless the creditor supplies the Court with written documentation showing the agreed upon interest rate. If a creditor cannot demonstrate a written contract in which the interest rate was agreed upon, the Courts will award interest at the legal rate of 10%. Utah Code § 15-1-1

Attorneys Fees
The Utah Courts will award attorneys fees even on default judgments if a creditor produces a written contract in which the debtor agreed to pay reasonable attorneys fees if the debt went to collection. Utah Code § 78-27-56.5 . Utah Courts will also award attorneys fees on actions to collect NSF checks. Utah Code § 7-15-1 . The Utah Courts will award a flat statutory amount for attorneys fees, rather than requiring an attorney to file an affidavit establishing the actual time the attorney spent in the collection matter. For actions over $5,000.00, the flat rate for attorneys fees is $775.00. Rule 73 of the Utah R. of Civ. Proc.

NSF Check Cases
Utah law requires that a creditor mail a notice to the debtor, requesting that a debtor pay the full balance of the check plus a $20.00 service charge within fifteen (15) days of the mailing of the Notice. Utah Code § 7-15-1 . If the debtor pays the face amount of the check, plus a $20.00 fee, within the first fifteen days after the notice is sent, the creditor is not entitled to further fees. If the debtor pays the face amount of the check, plus a $40.00 fee, within the first thirty (30) days after the notice is sent, the creditor is not entitled to further fees. After the expiration of thirty days, the creditor may file suit, and may seek an award for the face amount of the check, the $40.00 in fees, plus interest at 10% from the date the check was drafted, plus court costs, plus reasonable attorneys fees, plus damages equal to the greater of $100.00 or triple the check amount, but damages cannot exceed $500.00. Utah Code § 7-15-1

Post Judgment Writs of Garnishment and Execution
The Utah Courts will issue post judgment Writ of Garnishments and Execution, which seize a debtor's non-exempt assets. Writs of Garnishment and Execution require a filing fee of $35.00.

Wage Garnishments
Wage Garnishments require an employer to hold 25% of a debtor's net wages (after taxes and deductions), for each pay period, for a period of 120 days. The Employer served with a writ is required to fill out and sign an affidavit describing the debtors wages for each pay period and is required to remit the 25% to the creditor's attorney at the end of each pay period. Rule 64D of the Utah R. of Civ. Proc. Wage Garnishments required a payment of $25.00 to the Employer. Utah Code § 78-7-44

Bank Garnishments
In Utah , the Court's issue post judgment writs of garnishment which require a financial institution to seize all of the debtor's checking accounts, savings accounts, and other similar payment on demand accounts and deliver the seized money to the creditor's attorney, after a period of twenty (20) days. Rule 64D of the Utah R. of Civ. Proc. Bank Garnishments required a payment of $10.00 to the Financial Institution. Utah Code § 78-7-44.

Personal Property Writs of Execution
A judgment creditor may seize and store, pending a Constable or Sheriff's sale, all the debtors non-exempt personal property, (see exemptions listed below) including motor vehicles, stocks, bonds, art, household goods and furnishings. The money realized at the sale will be applied to the judgment. The judgment creditor may bid at the sale. 64D of the Utah R. of Civ. Proc.

Real Property Writs of Execution.
A judgment creditor may record a judgment the judgment debtor's real property owned in the County where the judgment is recorded. Utah Code § 78-22-1.5. The recorded judgment because a lien on the real property, having prior over all liens attaching to the property after the date of recording. A judgment creditor may then conduct a Constable or Sheriff's sale, on all the debtors non-exempt real property. 64D of the Utah R. of Civ. Proc.

Pre-Judgment Writs of Garnishment and Execution
The Utah Courts will issue pre judgment Writ of Attachment, Replevin, Garnishment and Execution, only upon a showing of that the creditor is likely to prevail on the merits of the creditor's, and that the creditor will probably lose the remedy unless the Court issues the prejudgment Writ. 64A of the Utah R. of Civ. Proc.

Writs to take possession of collateral (Writs of Replevin)
In Utah , a security creditor may obtain a prejudgment or post judgment Writ to compel the debtor to deliver the collateral upon a showing that the creditor is entitled to possession of the property, and that the debtor is wrongfully detaining the property. 64B of the Utah R. of Civ. Proc.

Exemptions: Personal Property.

The following are exempt: Burial plots, unemployment benefits, welfare benefits, social security, disability benefits, veterans benefits, child support, personal injury settlements. Utah Code § 78-23-5. Alimony, death benefits, all pension and retirement benefits. Certain necessary personal and household items. Utah Code § 78-23-5.

The following are exempt if valued under the amount stated:
Household goods, not already specifically exempted by item, up to $500.00.
Tools of trade and professional books, up to $3,500.
One motor vehicle, not exceeding $2,500.00 in value.
Utah Code § 78-23-8.

Real Property. Utah Code § 78-23-3.
Personal residence exemption. $20,000 in value for individual debtor.  $40,000 for married co-debtors.
Homestead, non-personal residence. $5,000 in value for each debtor.  $10,000 for married co-debtors.

Liability of a non-debtor spouse.
A non-debtor spouse is responsible for the debts incurred by his/her spouse if that debt was incurred to obtain goods and services necessary to support the family. Utah Code § 30-2 -9

Limitations on Actions. Actions to collect debts created by signed written agreements (i.e. promissory notes, mortgages, signature loans) must be filed within 6 years from the last date of payment. Utah Code § 78-12-23. Action to collect debts on open accounts (i.e. credit card debt, invoices for goods, etc.) must be filed within 4 years from the last date of payment. Utah Code § 78-12-25

Judgments. Judgments are good for 8 years and may be renewed. In order to renew a judgment, a new complaint must be filed within the 8 year period. Utah Code § 78-22-1

Foreign Judgments. Utah will enforce foreign judgments, but requires that the creditor's attorney file an affidavit attesting to the judgment and the last known location of the debtor. Further, a certified copy of the judgment must be attached to the attorney affidavit. Finally, collection is stayed for thirty (30) days from the date when the debtor is mailed notice of the filing of the judgment. Utah Code § 78-22a-1 et. seq.

Disclaimer:
The above-stated material have been prepared by Constantino Law Office, P.C., for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel.