Gladwell v. Reinhart

Summary

The Tenth Circuit certified questions to the Utah Supreme Court concerning whether Utah Code Ann. § 70C-7-103 creates a bankruptcy exemption for wages or merely limits garnishment outside bankruptcy. The court also asked whether pre-petition wages qualify as disposable earnings and whether the underlying debts arose from a consumer credit agreement. The appeal was stayed pending the Utah Supreme Court’s consideration of the certified questions.

Holdings

1. 15 U.S.C. § 1673 does not create an exemption in bankruptcy and therefore has no bearing on the debtor's claimed exemption.
2. The questions concerning whether Utah Code Ann. § 70C-7-103 creates a bankruptcy exemption, whether the wages qualify as disposable earnings, and whether the debts arose from a consumer credit agreement should be certified to the Utah Supreme Court because they control the appeal and have not been answered by Utah courts.

Questions Presented

1. Whether 15 U.S.C. § 1673 creates an exemption in bankruptcy for the debtor's pre-petition wages.
2. Whether Utah Code Ann. § 70C-7-103 creates an exemption in bankruptcy or merely limits a judgment creditor's garnishment remedy outside bankruptcy.
3. If Utah Code Ann. § 70C-7-103 creates a bankruptcy exemption, whether the debtor's pre-petition wages qualify as disposable earnings under the statute.
4. If the wages qualify as disposable earnings, whether the debts at issue arose from a consumer credit agreement under Utah Code Ann. § 70C-7-103.

Disposition

other