car exemptions in utah

[tarichann]

I have a 2002 ford focus. I have the title free and clear. I will be filing bankruptcy in the next couple days. My question is i am a single mom with a kid. On car exemptions do they allow you to keep one car to get around and if you have another car then you can exempt that one. Or is my one car the only exemption I can have? I have heard different answers to this question. I will be talking to my attorney on Monday i am just curious cuz ive heard so many different things. Thanks in advance. tar

[SMinGA]

Exemptions depend on your state - each one varies.

All of what you own as of the filing date becomes part of the bankruptcy estate. Exemptions determine what you can protect, and keep. Review your state's bankruptcy exemptions - google 'bankruptcy exemptions' and you should find them easily. In GA, for example, its $3500 per filer. So if I file as an individual, I can protect $3500 value in a vehicle. If I file with my spouse, we can together exempt $7000. Some states may allow you to spread it over multiple vehicles, some only allow it on one vehicle per person. Again, depends on your state.

Some states also have a 'wildcard' exemption which can be used on any property. If you have a wild card you can add it to the vehicle exemption to protect more value.

[SMinGA]

From your other post, you've lived in UT for 18 months and before that for 1 year in TX. So you'll use TX exemptions not UT.

TX seems to have pretty generous exemptions, and gives the choice of using federal exemptions or state.

Personal property including 1 vehicle per adult w/ drivers license: up to $30,000 total value, or $60,000 for the head of a family. Does not seem to break it down by item/category. It does clearly say 1 vehicle per licensed driver however, so you would not be able to exempt 2 vehicles unless there is another licensed driver in the household.

Federal allows $3,225 in vehicle exemption. Also $1,075 wildcard. And if you do not have a home with equity to protect, you can use up to $10,125 of any unused homestead exemption as an additional wild card on any property.

So going with the federal, you would easily be able to cover 2 cars as long as the total value of both was below $3,225 + $1,075 + $10,125.

[tarichann]

Thanks so much for your reply. I only actually have one car but if I have to file with TX exemptions then there is no problem. It just seems weird to me that I have lived in UT my whole life but a year and I have to file TX exempts. I guess it will work in my fav though. Since I will be talking to my attorney on Monday I will have to dicuss this with him. Thank you so much for your help. T

[SMinGA]

It does seem to be an advantage in your situation.

It used to be that one could use the 'current' state's exemptions if they lived there for only 6 months. Some states had very generous homestead exemptions, so in theory someone could liquidate their assets - move to one of those states and buy a house for cash - and 6 months later file bankruptcy to get rid of all unsecured debt. For a few particular states, it did not matter if your house was worth millions as the entire home value was protected without limit.

The change to require 2 years of residency in order to use your 'current' state's exemptions was to fix that loophole.

Thanks so much for your reply. I only actually have one car but if I have to file with TX exemptions then there is no problem. It just seems weird to me that I have lived in UT my whole life but a year and I have to file TX exempts. I guess it will work in my fav though. Since I will be talking to my attorney on Monday I will have to dicuss this with him. Thank you so much for your help. T