What Arizona Motor Vehicle Exemption Means For You


Posted July 12, 2017 by pewlaw

This article will discuss Arizona motor vehicle exemptions, how much it is, the types of vehicles it covers and the effects being covered has on the exemption. 

 
One of the most common treasured possessions of a person is their vehicle, without which getting from point A to point B is hard and may result in the inconvenience of using public transportation. For bankruptcy filers the next question is, ‘how I keep my car in a bankruptcy? The Arizona motor vehicle exemption helps to determine whether or not you get to keep your vehicle if you are filing for chapter 7 bankruptcy. This article will discuss Arizona motor vehicle exemptions, how much it is, the types of vehicles it covers and the effects being covered has on the exemption. Some comments were provided by an attorney and spokesperson for the Pew Law Center.

The Arizona motor vehicle exemption has a pivotal role in determining whether or not the bankruptcy trustee gets to sell your car in order to pay your unsecured creditors. If the equity in your car is less than the Arizona motor vehicle exemption amount, then the trustee cannot sell it. However, if your equity is significantly more than the Arizona motor vehicle exemption then it is highly likely that the trustee will sell your vehicle and repay your unsecured creditors. The attorney stated that, “it is important to note that while you may be able to keep your car from the trustees, the lender may be able to repossess your car during or after bankruptcy.” The Arizona motor vehicle exemption amount allows a filer to exempt up to $6000 in equity in his or her vehicle. In the event that the filer is physically disabled then the exemption amount rises to $12000. To illustrate: if your car is worth $12000 with you have a loan on it for $7000, your equity on the vehicle is $5000. If you file bankruptcy you can exempt the whole $5000 of equity with the Arizona motor vehicle exemption and keep your car.

The attorney stated that “while some states allow bankruptcy filers to use the federal bankruptcy exemptions rather than the state exemptions, Arizona is not one of those states and bankruptcy filers must use the Arizona state exemptions. Some states also allow married couples filing for a joint bankruptcy petition to double the listed exemption amounts. In Arizona married couples are allowed to double the motor vehicle exemption therefore, if you are married and filing for a joint bankruptcy, you can exempt up to $12000 in equity in your motor vehicle. The attorney stated that it is important to note that while Arizona law provided for joint filers to get double the exemption amount, only one vehicle can be exempt.

To view the Arizona statutes on motor vehicle exemptions one can visit the Arizona State Legislature website. However, understanding laws and statutes is very difficult therefore, for more information bankruptcy filers can visit Pew Law Center to learn about chapter 7 bankruptcy on their web page discussing the benefits of chapter 7 bankruptcy and how a chapter 7 discharge can free you from debt. For a free case evaluation seek out phoenix bankruptcy attorneys for advice and representation. 

[b]About the company:[/b]

The Pew Law Center is a law firm that specializes in bankruptcy law and has renowned professionals with experience and knowledge in chapter 7 bankruptcy AZ.
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Issued By Pew Law Center, PLLC
Website Pew Law Center, PLLC
Phone (480) 745-1770
Business Address Mesa Office 1811 S. Alma School Rd., Ste 260 Mesa, Arizona 85210
Country United States
Categories Legal
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Last Updated July 12, 2017