UT - Motor Vehicle Exemption

[tonyk81]

If I am filing chapter 7 jointly with my wife, are we entitled to two motor vehicle exemptions? Would we be allowed one for each of us or just one for the whole case?

[lrprn]

If I am filing chapter 7 jointly with my wife, are we entitled to two motor vehicle exemptions? Would we be allowed one for each of us or just one for the whole case?

All the Utah bk exemption sites state the $2500 is for one car. As you said, the key is whether the $2500 can be doubled to include another car if your spouse is filing.

According to the Utah Bankruptcy Law Handbook at http://www.utahbankruptcy.com/exemptprop.htm, "If you are filing jointly with your spouse and you share one vehicle, you can each assert the vehicle exemption against the same vehicle. If the equity in the vehicle you share is not more than $5,000.00, it would be protected from bankruptcy. The vehicle exemption is applicable to motorcycles if the motorcycle is your primary means of transportation."

From this interpretation, it appears that the exemption may be for only one vehicle and all that can be doubled if you file as a couple is the $2500 for one vehicle to $5000. A second car may not be eligible for the exemption.

However, this website was last updated in November 2005 and although it is based on the current BAPCPA bk law, six years for different case law interpretations of the current bk law in Utah is an eternity. It's important to check to ensure this is still the case when you have your 3-4 free initial consultations with experienced Ch 7 bk lawyers in your area.