Utah
Utah Debt Collection Laws: The 25% Cap, the 15% Student Loan Break, and What Third-Party Payments Do
Independently fact-checked against primary sources (last audited August 12, 2026). · 5 primary sources cited on this page. How we verify our legal content
In a Utah consumer credit case, a creditor cannot garnish your wages before winning a judgment against you. Utah Consumer Credit Code Sec. 70C-7-102 says so directly: prior to entry of judgment in an action against a debtor relating to a consumer credit agreement, the creditor may not attach unpaid earnings by garnishment or like proceedings. Most Utah garnishments trace back to a default judgment entered because the person sued never answered, so filing an answer is the single highest-value move available once you are served. Once a judgment exists, Utah runs a fairly standard 25% cap, with two genuine wrinkles: a lower cap for education-loan debt, and a statute of limitations that can restart from a payment made by someone other than you.
Wage Garnishment in Utah: The 25% Cap and the Education-Loan Break
Utah's consumer-credit garnishment formula, Sec. 70C-7-103, is the lesser of three numbers: 25% of disposable earnings for the pay period, the amount by which disposable earnings exceed 30 hours a week multiplied by the federal minimum hourly wage (about $217.50 a week at today's $7.25 federal minimum), or, if the judgment relates to an education loan, 15% of disposable earnings. That last tier is a genuine break most states do not offer, cutting the maximum bite nearly in half for education-loan judgments specifically. General, non-consumer-credit judgments run through a separate court rule (Utah Rule of Civil Procedure 64D) that this research could not independently open live; the same underlying 25%/30x-federal-minimum-wage structure appears in Utah's tax-levy statute, so the formulas likely track each other, but the rule's exact text should be checked directly before relying on it for a non-consumer-credit judgment.
Utah has no separate head-of-household wage exemption and no automatic dollar-amount bank-account shield. Instead, the Utah Exemptions Act protects specific categories regardless of household status: disability, illness, and unemployment benefits; veterans' benefits; money and the right to receive money for child support, which carries no reasonableness limit; alimony or separate maintenance, but only to the extent reasonably necessary for the support of the debtor and the debtor's dependents; retirement accounts, including inherited IRAs; and the full amount of any federal tax refund tied to the Earned Income Tax Credit or Child Tax Credit. Outside those categories, Sec. 78B-5-506 protects $1,000 in each of four separate household categories, furniture and furnishings, dining and kitchen tables and chairs, animals, books and musical instruments, and heirlooms or items of sentimental value, so up to $4,000 of household property in total rather than a single $1,000 pool. Tools of the trade ($5,000) and one motor vehicle ($3,000) are protected on top of that.
Utah's tax-levy garnishment does not exceed the ordinary formula. The State Tax Commission's own wage-levy statute, Sec. 59-1-1420, caps at the same lesser of 25% or the excess over 30 times the federal minimum wage that applies to consumer-credit judgments, so a state tax garnishment in Utah is not harsher than an ordinary one. Firing protection is limited to a single judgment: Sec. 70C-7-104 bars discharging an employee whose earnings were garnished «in connection with any one judgment», the same one-debt scope as federal law, with no extension to a second garnishment.
How Long Can You Be Sued in Utah, and What Restarts the Clock
Utah's written-contract statute of limitations runs six years under Sec. 78B-2-309(1)(b). Oral contracts and open accounts get four years under Sec. 78B-2-307. Utah does not name credit cards specifically in its statutes; the existing statute-of-limitations page for the state treats cards as a four-year open account, but a special accrual rule for «credit agreements» under Sec. 78B-2-309(2) suggests a written six-year treatment could apply instead. That characterization is a matter of case law this research did not resolve, so do not assume either number without checking a Utah appellate decision.
What is settled by statute, and genuinely unusual, is how the clock restarts. Utah Code Sec. 78B-2-113 lets the limitations period run fresh from the date of a written acknowledgment or promise, or from the date of a payment made by the debtor. For a credit agreement specifically, Sec. 78B-2-309(2) goes further: the clock can also restart from a payment made by a THIRD PARTY, not just the debtor. That means someone else paying down your Utah credit debt, a family member covering a payment, for example, can extend the window a creditor has to sue you, even though you made no payment and signed nothing yourself.
Once a Utah debt is genuinely time-barred, though, it stays that way. Sec. 78B-2-113(2) says the barred right is unavailable both as a cause of action and as a defense, meaning the claim does not come back later. And a time-barred debt is never an erased one in the meantime: a collector can still ask you to pay it, while federal Regulation F only forbids suing or threatening suit once the deadline has passed.
Car Repossession in Utah: A Real Break for Small-Balance Sales
Utah enacted the standard UCC self-help rule at Sec. 70A-9a-609: after default, a secured lender may repossess a vehicle without going to court as long as it does not breach the peace. No statutory notice-of-cure requirement was found anywhere in the part of the Utah Consumer Credit Code governing these loans, which is consistent with Utah being a straight self-help state for ordinary vehicle repossession.
Where Utah stands out is on small-balance consumer sales. Sec. 70C-7-101 bars any deficiency after repossession or voluntary surrender when the underlying consumer credit sale had a cash price of $3,000 or less, meaning giving up the collateral, or having it repossessed, fully satisfies the debt. The same section blocks a seller from having it both ways: if the seller sues on the debt instead of repossessing, it cannot also take back the collateral, and the collateral is not subject to execution on the judgment. The protection has real exceptions, including significant damage to the goods or the buyer's refusal to surrender them, and a creditor is never obligated to accept a voluntary surrender in the first place. Above $3,000, the standard UCC deficiency rules under Sec. 70A-9a-615 apply.
If You Are Being Garnished or Sued in Utah
If you are served with a debt lawsuit in Utah, answer it. A default judgment opens every collection tool at once and forfeits defenses, including an expired statute of limitations, that a court will not raise on your own behalf. If a garnishment has started, confirm which formula applies, the 15% education-loan tier is a meaningful difference from the ordinary 25% cap, and remember that Utah law bars any wage garnishment before a judgment exists in a consumer credit case. If the debt is old, be cautious about payments, both yours and anyone else's on your behalf, since Utah's third-party-payment rule can restart the clock in a way most states' laws do not. And if judgments are piling up faster than any single step can resolve, bankruptcy's automatic stay halts collection activity while the larger financial picture gets sorted out.
Overwhelmed by debt in Utah? Get a free bankruptcy consultation
Bankruptcy can stop foreclosure, wage garnishment, and creditor calls, and which debts you can clear and what property you keep depend on Utah's exemptions. Get a free, confidential consultation with a Utah bankruptcy attorney to understand your options. There is no obligation.
Information last verified on 2026-08-12. This article has not yet been reviewed by a licensed lawyer.
Related Resources
For the national picture, see debt collection laws by state, statute of limitations on debt, how to stop wage garnishment, and car repossession laws. Social Security and other federal benefits have their own protection rules, covered in can Social Security be garnished. For deadlines on other Utah claim types, see the Utah statute of limitations. Child support garnishment is a separate, higher-priority process, covered in Utah child support laws. If the debts themselves have become unmanageable, Utah bankruptcy explains the state's exemptions.
Last updated: 2026-08-12.
More Utah Laws
Frequently Asked Questions
What percentage of my wages can be garnished in Utah?
For consumer credit judgments, the lesser of 25% of disposable earnings, the amount above 30 times the federal minimum hourly wage, or 15% if the judgment is on an education loan. Utah also bars any wage garnishment before a judgment is entered in a consumer credit case.
Can a payment from someone else restart the clock on my Utah debt?
For a credit agreement, yes. Utah Code Sec. 78B-2-309(2) allows the statute of limitations to restart from a payment made by a third party, not just the debtor, which is unusual among states.
What is the statute of limitations on debt in Utah?
Six years for written contracts under Sec. 78B-2-309, four years for oral contracts and open accounts under Sec. 78B-2-307. Whether credit card debt counts as written or open-account is not settled by statute text alone and depends on Utah case law.
Does Utah require notice before repossessing my car?
No statutory cure period was found for ordinary consumer vehicle loans; Utah follows the standard UCC self-help rule. But on consumer credit sales with a cash price of $3,000 or less, Sec. 70C-7-101 bars any deficiency after repossession or surrender entirely.
Is there a lower garnishment cap for student loans in Utah?
Yes, for private education-loan judgments under the Utah Consumer Credit Code, the cap drops to 15% of disposable earnings instead of the standard 25%.
Can I be fired for a wage garnishment in Utah?
No employer may discharge you because your earnings were garnished for any one judgment, per Sec. 70C-7-104. That protection covers a single judgment, matching federal law, and does not extend automatically to a second, unrelated garnishment.
Updates
Corrected the exemptions section so the reasonableness limit applies only to alimony and not to child support, restated the household-goods exemption as $1,000 in each of four categories rather than a single $1,000 pool, and scoped the pre-judgment wage-garnishment bar to consumer credit cases.
Independently fact-checked against the cited primary sources
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Utah Code, Title 70C: Utah Consumer Credit Code
§ 70C-7-103Definitions -- Limitation on garnishment.In force
(1) As used in this part: (a) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld. (b) "Education loan" means a loan subject to this title, or notwithstanding Subsection 70C-1-202(2)(h)(ii)(B)(II), made by a depository institution that: (i) is closed end; (ii) is a qualified education loan as defined in 26 U.S.C. Sec. 221(d); (iii) expressly states in the original loan documents that it is a qualified education loan or the proceeds will be used solely for qualified higher education expenses as defined in 26 U.S.C. Sec 221(d); and (iv) in a bankruptcy filing, the loan or any indebtedness relating to the loan is subject to the provisions of 11 U.S.C. Sec. 523(a)(8). (c) "Garnishment" means a legal or equitable procedure through which the earnings of an individual are required to be withheld for payment of a debt.
Official text (excerpt) · last checked 2026-09-02 · Read the full text in our law library · Verify at le.utah.gov
§ 70C-7-101Restriction on deficiency judgments in consumer credit sales.In force
(1) If a seller repossesses or voluntarily accepts the surrender or return of goods that were the subject of a consumer credit sale and in which the seller has a security interest to secure a debt arising from the sale of goods or services or a combined sale of goods and services, and the cash price of the sale was $3,000 or less, any debt remaining from the sale shall be fully satisfied and the seller has no further obligation to the buyer with respect to the goods taken or accepted. (2) If the seller brings an action against the buyer for a debt arising from a consumer credit sale of goods or services, when under this section the creditor would not be entitled to a deficiency judgment if it repossessed the collateral, and obtains judgment: (a) it may not repossess the collateral; and (b) the collateral is not subject to levy or sale on execution or similar proceedings pursuant to the judgment. (3) (a) Subsections (1) and (2) do not apply if the goods that were the subject of the sale and that secured a debt arising from a consumer credit sale are damaged to a significant degree after the goods are delivered to the buyer through no fault of the creditor.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
§ 70C-7-104No discharge from employment for garnishment.In force
No employer may discharge any employee because the employee's earnings have been subject to garnishment in connection with any one judgment.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Utah Code, Title 78B: Judicial Code
§ 78B-2-309Within six years -- Mesne profits of real property -- Instrument in writing -- Fire suppression.In forcecited in 2 of our articles
(1) An action may be brought within six years: (a) for the mesne profits of real property; (b) subject to Subsection (2), upon any contract, obligation, or liability founded upon an instrument in writing, except those mentioned in Section 78B-2-311; or (c) to recover fire suppression costs or other damages caused by wildland fire. (2) For a credit agreement, as defined in Section 25-5-4, the six-year period described in Subsection (1) begins the later of the day on which: (a) the debt arose; (b) the debtor makes a written acknowledgment of the debt or a promise to pay the debt; or (c) the debtor or a third party makes a payment on the debt.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Cited in 33 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Daniels v. Deutsche Bank National Trust (Court of Appeals of Utah 2021, 500 P.3d 891)“…he Utah Code, which states as follows: 2. The change in Utah Code section 78B-2-309 lends itself to confusion in the contex…”
- Deleeuw v. Nationstar Mortg. LLC (Court of Appeals of Utah 2018, 424 P.3d 1075)“…t the general statute of limitations for written contracts, Utah Code section 78B-2-309, applied to the foreclosure and that th…”
- Insight Assets, Inc. v. Farias (Utah Supreme Court 2013, 740 Utah Adv. Rep. 20)“…er the statute of limitations period has run.24 21 UTAH CODE § 78B-2-309; see id. § 57-1-34 (“The trustee’s sale…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Utah Statute of Limitations: Filing Deadlines by Case Type
§ 78B-2-113Effect of payment, acknowledgment, or promise to pay.In force
(1) An action for recovery of a debt may be brought within the applicable statute of limitations from the date: (a) the debt arose; (b) a written acknowledgment of the debt or a promise to pay is made by the debtor; or (c) a payment is made on the debt by the debtor. (2) If a right of action is barred by the provisions of any statute, it shall be unavailable either as a cause of action or ground for defense.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Cited in 7 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Olsen v. Fair Co. (Court of Appeals of Utah 2016, 808 Utah Adv. Rep. 14)“…ined that the statute of limitations had not been tolled by Utah Code section 78B-2-113, which restarts the statute of limitati…”
- Griffin v. Cutler (Court of Appeals of Utah 2014, 772 Utah Adv. Rep. 57)“…examine the statute governing written acknowledgements, see Utah Code Ann. § 78B-2-113 (LexisNexis 2012); and does not discuss…”
- Dale K. Barker Co PC CPA Profit Sharing v. Turner (Court of Appeals of Utah 2021, 500 P.3d 940)“…tolling when “a payment is made on the debt by the debtor,” Utah Code Ann. § 78B-2-113(1)(c) (emphasis added), and thus argues…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 78B-2-307Within four years.In forcecited in 7 of our articles
An action may be brought within four years: (1) after the last charge is made or the last payment is received: (a) upon a contract, obligation, or liability not founded upon an instrument in writing; (b) on an open store account for any goods, wares, or merchandise; or (c) on an open account for work, labor or services rendered, or materials furnished; (2) for a claim for relief or a cause of action under the following sections of Title 25, Chapter 6, Uniform Voidable Transactions Act: (a) Subsection 25-6-202(1)(a), except in specific situations where the time for action is limited to one year under Section 25-6-305; (b) Subsection 25-6-202(1)(b); or (c) Subsection 25-6-203(1); (3) for a claim involving personal property damage to the aggrieved party's motor vehicle, as defined in Section 41-6a-102, or personal property from an accident involving a motor vehicle; and (4) for relief not otherwise provided for by law.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Cited in 64 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Asset Acceptance LLC v. Stocks (Court of Appeals of Utah 2016, 811 Utah Adv. Rep. 5)“…s barred by the four-year statute of limitations set out in Utah Code section 78B-2-307. ¶4 After receiving Stocks’s answe…”
- Fehr v. Stockton (Court of Appeals of Utah 2018, 427 P.3d 1190)“…was barred by the four-year statute of limitations found in Utah Code section 78B-2-307. That section states, in relevant part:…”
- Grillone v. Peace Officer Standards (Court of Appeals of Utah 2023, 529 P.3d 1026)“…the four-year catch-all statute of limitations set forth in Utah Code section 78B-2-307(3), which he asserts applied to this ad…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Utah Dog Bite Laws: Liability and Victim Rights, Utah Car Accident Laws: No-Fault, PIP, Tort Threshold, and Your Claim, Utah Motorcycle Accident Laws (2026): Deadlines & Helmets
Utah Code, Title 70A: Uniform Commercial Code
§ 70A-9a-609Secured party's right to take possession after default.In force
(1) After default, a secured party: (a) may take possession of the collateral; and (b) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under Section 70A-9a-610. (2) A secured party may proceed under Subsection (1): (a) pursuant to judicial process; or (b) without judicial process, if it proceeds without breach of the peace. (3) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Cited in 1 court opinions in our collectionLatest citing opinion in our collection: 2019
Opinions citing this section in our collection:
- Paradigm Equipment Finance, Inc. v. Peterson Medical Surgi-Center, S.C. (District Court, N.D. Illinois 2019)“…5 Utah has adopted this section of the U.C.C. See Utah Code Ann. § 70A-9a-609. Conclusi…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 70A-9a-615Application of proceeds of disposition -- Liability for deficiency and right to surplus.In force
(1) A secured party shall apply or pay over for application the cash proceeds of disposition under Section 70A-9a-610 in the following order to: (a) the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party; (b) the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made; (c) the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if: (i) the secured party receives from the holder of the subordinate security interest or other lien a signed demand for proceeds before distribution of the proceeds is completed; and (ii) in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and (d) a secured party that is a consignor of the collateral if the secured party receives from the consignor a signed demand for proceeds before distribution of the proceeds is completed.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
Utah Code, Title 59: Revenue and Taxation
§ 59-1-1420Administrative garnishment order for liability.In force
(1) As used in this section: (a) "Administrative garnishment order" includes a continuing administrative garnishment order issued under this section. (b) "Disposable earnings" means the same as that term is defined in Section 70C-7-103. (c) "Garnishee" means a person to whom the commission issues an administrative garnishment order under this section. (d) "Nonexempt periodic payment" means any recurring payment that, under Title 78B, Chapter 5, Part 5, Utah Exemptions Act, is not exempt from the judicial process to collect an unsecured debt. (2) (a) Subject to Subsection (3), if a taxpayer owes a liability, the commission may issue an administrative garnishment order against the taxpayer's personal property, including wages, in the possession or control of a person other than the taxpayer in the same manner and with the same effect as if the order were a writ of garnishment issued by a court with jurisdiction. (b) In addition to the underlying liability, the commission may satisfy through an administrative garnishment any costs or fees incurred by the commission as a result of issuing the administrative garnishment order.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at le.utah.gov
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Sources and References
- Utah Consumer Credit Code Sec. 70C-7-101 to 70C-7-104 (Garnishment, Prejudgment Bar, Small-Sale Deficiency Bar)(le.utah.gov).gov
- Utah Code Title 78B, Chapter 2 (Limitation of Actions), Sections 78B-2-113, 78B-2-307, and 78B-2-309(le.utah.gov).gov
- Utah Code Title 78B, Chapter 5, Part 5 (Utah Exemptions Act), Sections 78B-5-505 and 78B-5-506(le.utah.gov).gov
- Utah Code Title 70A, Chapter 9a, Part 6 (Secured Transactions - Default), Sections 70A-9a-609 and 70A-9a-615(le.utah.gov).gov
- Utah State Tax Commission wage-levy statute, Utah Code Sec. 59-1-1420(le.utah.gov).gov