Bankruptcy Attorney Lawyer
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CAN I KEEP MY CAR OR TRUCK? 

The Arizona law allows each person to protect up to $5,000 equity in a vehicle.  In the case of a husband and wife, they can lump together their exemptions to protect up to $10,000 equity in a vehicle.  For physically disabled persons, the exemption is $10,000.  I AM VERY PROUD OF THE FACT THAT I STARTED THE BALL ROLLING TO GET THIS LAW CHANGED AS OF AUGUST 2001.  THE LAW HAD BEEN ONLY A $1,500 EXEMPTION. 

Many people have vehicles on which they owe more than the vehicle is worth.  For example, you owe $10,000,00 on a truck, and it is really only worth $6,000.00.  You then have several choices:  (1) You might be able to keep paying on the truck even though you are paying more for the truck than it is worth; (2) You can give back the truck, and wipe out the debt (in this example, $10,000.00).  Whatever the creditor sells the truck for, that is what they get - you don't owe any more money!; (3) Sometimes a creditor might be willing to negotiate.  If you owe $10,000.00 and the truck is only worth $6,000.00, then the creditor might get even less than that at a wholesale auction.  In some cases, the creditor might be willing to reduce what you owe.  Every case is different, and we can talk about it when you come in.