If I file for bankruptcy protection can I protect my car from creditors?
Debtors using Arizona exemptions are allowed to protect up to $6,000 fair market value of any one vehicle that they own. If the debtor is physically disabled and has a handicap placard or license plate for their vehicle, they may exempt up to $12,000.00 fair market value of their vehicle. The vehicle exemption applies to motorbikes as well, however, you will probably have a hard time extending the exemption limits to the physically disabled amounts for obvious reasons.
A couple may exempt two seperate vehicles, each spouse receiving one $6,000.00 exemption. They may also choose to combine their exemptions on one vehicle. Each disabled spouse may extend their exemtpion amounts to $12,000.00 if they have a handicap placard or license plate.
It is important to know which exemptions you may use whien filing a bankruptcy case. Arizona is considered a federal bankruptcy exemption opt-out state, and here we use our own set off Arizona exemptions which are found in the Arizona Revised Statutes. Generally, if you have lived in Arizona for two or more years, you will be required to use the Arizona exemptions. Be sure to speak with an attorney so you know which exemptions you may use. Misuse of exemptions could lead to property loss. If you have any questions about this please don't hesitate to call us at 490-355-1377.