Exemptions for vehicles

[GoingDown]

I know exemptions vary from state to state. In Arizona, the exemption amount is $5000 for one vehicle.

So, out of curiosity, let's say that a credit card company got a judgment against me for $12,000. And let's say that my vehicle is paid off and worth a total of $9,000 according to Kelly Blue Book values. How would the creditor get the $4,000 of equity out of the vehicle?

Wouldn't they have to pay me $5,000 before they came out and towed it away?

Or would they just put a lien on it, and hope that I tried to sell it or trade it in, and then pay off their lien?

Has anyone ever had this happen to them or to anyone they know? As far as I can tell, creditors don't seem to be interested in vehicles. They seem to only be interested in checking accounts and wages.

[SinkingFast]

BK Exemptions are only applicable if your filing BK.

If you file BK, you can get the debt to the creditor totally discharged in the BK.

But if you are getting sued, not filing BK, and the Creditor wins a judgement against you, BK Exemptions are not applicable there.

The Creditor can put a lien on your property, or any assets you may have in a savings acct or investments, or they can garnish your wages up to the legal limit allowed by your State.

BK Exemptions have nothing to do with getting sued outside of BK. BK Exemptions are the amounts of various types of property you can keep to get a fresh start after BK.

[GoingDown]

But this is a direct quote from Arizona Law, which never even uses the word Bankruptcy...

These are the Arizona Revised Statutes...
33-1121. Definitions

In this article, unless the context otherwise requires:

1. "Debtor" means an individual whether married or single utilizing property described in this article for personal, family or household use.

2. "Process" means execution, attachment, garnishment, replevin, sale or any final process issued from any court or any other judicial remedy provided for collection of debts.



33-1125. Personal items

The following property of a debtor used primarily for personal, family or household purposes shall be exempt from process:

1. All wearing apparel not in excess of a fair market value of five hundred dollars.

2. All musical instruments provided for the debtor's individual or family use not in excess of an aggregate fair market value of two hundred fifty dollars.

3. Domestic pets, horses, milk cows and poultry not in excess of an aggregate fair market value of five hundred dollars.

4. All engagement and wedding rings not in excess of an aggregate fair market value of one thousand dollars.

5. The library of a debtor, including books, manuals, published materials and personal documents not in excess of an aggregate fair market value of two hundred fifty dollars.

6. One watch not in excess of a fair market value of one hundred dollars.

7. One typewriter, one bicycle, one sewing machine, a family bible, a lot in any burial ground, one shotgun or one rifle or one pistol, not in excess of an aggregate fair market value of five hundred dollars.

8. One motor vehicle not in excess of a fair market value of five thousand dollars. If the debtor is physically disabled, the fair market value of the motor vehicle shall not exceed ten thousand dollars.

9. Professionally prescribed prostheses for the debtor or a dependent of the debtor, including a wheelchair.




So, my question is, wouldn't they have to pay me $5000 before they could take my vehicle from me? And how likely is that to happen?

[SinkingFast]

Whether it says the word BK or not, those are BK statutes.

How they're applied,......... You'll have to ask an attny.

I'd bet you the Creditor won't have to pay you the Exemption amount to take your car, if they do.

Just my interpretation. Plain old common sense speaking there.