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Bankruptcy Vehicle Exemption

How Much Equity is Exempt in Bankruptcy Cases?

The Arizona Bankruptcy Vehicle Exemption

First and foremost, Arizona is a federal bankruptcy exemption opt-out state, so if you file a bankruptcy case in Arizona dn use Arizona exemptions, you will not use the federal exemptions. The exemptions you use usually depends how long you've lived in Arizona. It is important to know which exemptions you should use, because all exemption schemes are different, and if you don't know what you are doing, yo ucould wind up turning over something to a chapter 7 trustee (this is why bankruptcy debtors should have an attorney EVERY TIME).


In Arizona, an individual bankruptcy debtor may exempt $6,000.00 in one vehicle. A couple may exempt $6,000.00 in two seperate vehicles, or $12,000.00 in one vehicle, what ever they choose. If a debtor is handicapped and has a handicap placard and/or license plate, their exemption goes up to $12,000.00 individually, or double it if in a joint case, both couples are disabled, and they have both have placards, and license plates.


Remember, equity is equity. It is the value of the vehicle minus any amount owed to a secured lender with a perfected lien. Make sure you know the exemption structure you may use when you file a bankruptcy case, make sure your lender's lien is perfected. ALWAYS get an attorney when attempting to file for bankruptcy relief. I have seen way too many cases go wrong, and assetts lost because a debtor did not want to pay to have it done right.