Bankruptcy and Vehicle Exemptions.

[aprilbaker692]

Jurisdiction

Utah

The only thing I have to my name is a 2011 Toyota Corolla in good condition based on KBBV its valued between 5000 and 6000.

Researching Utah Bankruptcy exemptions I find 2 numbers thrown out on Nolo and other legal forums. One states we are allowed to claim 3000 per person per vehicle the other states 5000.

I am married and my name is the only one on the vehicle.

Utah does not have a wild card exemption.

Am I the only one that can claim the exemption on the car or can my husband who does not drive and does not have his name on it also claim it?
I assume no but I would like to be sure.

I can not lose this car it would mean not having any way to work there is not a bus line where I live.
I have no jewelry my wedding rings were sold to pay for food and I do not own a home. I can see this being the only thing they would take.

I also understand in some cases tools of the trade a car may be used as an exemption. I do not understand how this would apply. The car is used for transportation to and from work.

I would appreciate any insight and clarification
on this.

 

[adjusterjack]

Researching Utah Bankruptcy exemptions I find 2 numbers thrown out on Nolo and other legal forums. One states we are allowed to claim 3000 per person per vehicle the other states 5000.

Nolo provides the exemption statute numbers. The following statute answers your question.

78B-5-506. Value of exempt property -- Exemption of implements, professional books, tools, and motor vehicles.

• (2) An individual is entitled to an exemption, not exceeding $5,000 in aggregate value, of implements, professional books, or tools of the individual's trade, including motor vehicles to which no other exemption has been applied, and that are actually used by the individual in the individual's principal business, trade, or profession.

• (3)
  • (a) As used in this Subsection (3), "motor vehicle" does not include any motor vehicle designed for or used primarily for recreational purposes, such as:
    • (i) an off-highway vehicle as defined in Section 41-22-2, except a motorcycle the individual regularly uses for daily transportation; or
    • (ii) a recreational vehicle as defined in Section 13-14-102, except a van the individual regularly uses for daily transportation.
  • (b) An individual is entitled to an exemption, not exceeding $3,000 in value, of one motor vehicle.

2016 Utah Code :: Title 78B - Judicial Code :: Chapter 5 - Procedure and Evidence :: Part 5 - Utah Exemptions Act :: Section 506 - Value of exempt property -- Exemption of implements, professional books, tools, and motor vehicles.

If you are self-employed, in business for yourself, or use the vehicle in your trade as an employee and carry your tools and equipment in the vehicle, the exemption is a TOTAL of $5000 INCLUDING the car and business related items.

If you use the car only to commute the exemption is $3000. That means that YOUR exemption is $3000.

You wrote that you and your spouse only have the one vehicle. The exemption for one vehicle is still $3000.

I suggest you stop looking on the internet and sit yourself down with a bankruptcy lawyer and see how this problem can be worked out.

 

[aprilbaker692]

Nolo provides the exemption statute numbers. The following statute answers your question.



2016 Utah Code :: Title 78B - Judicial Code :: Chapter 5 - Procedure and Evidence :: Part 5 - Utah Exemptions Act :: Section 506 - Value of exempt property -- Exemption of implements, professional books, tools, and motor vehicles.

If you are self-employed, in business for yourself, or use the vehicle in your trade as an employee and carry your tools and equipment in the vehicle, the exemption is a TOTAL of $5000 INCLUDING the car and business related items.

If you use the car only to commute the exemption is $3000. That means that YOUR exemption is $3000.

You wrote that you and your spouse only have the one vehicle. The exemption for one vehicle is still $3000.

I suggest you stop looking on the internet and sit yourself down with a bankruptcy lawyer and see how this problem can be worked out.

I am in the process of looking for one hence why I am using the internet. I also wanted to research bankruptcy entirely so I can understand it before I discuss it with an attorney. It makes it easier for me to understand the terms and what they are explaining it if I have research in hand when I go to ask my questions.

You clarified quite well for the most part which will allow me to ask my questions a little more clearly when I do meet with an attorney.

Thank you for your time.

 

[army judge]

Unlike some states, Utah does not allow you to choose between state and federal exemptions. You must use state exemptions only, but there are federal non-bankruptcy exemptions that you may use to protect property such as veteran's benefits and federal retirement accounts.

A Brief Guide to Utah Bankruptcy Exemptions - Arnold, Wadsworth & Coggins