This is a common question. The short answer is … it depends.  Bankruptcy uses different exemptions than medicaid and other programs. The Utah legislature thinks that it is sufficient to allow each person only $3,000 in equity in a car.  I don’t think that’s enough, but that is what we have to deal with.  Transferring your car to a family member won’t work. If you have a lot of equity in your vehicle then you may want to discuss filing a Chapter 13 bankruptcy or other planning options.  Contact me to discuss a few legal methods to help you keep your vehicle.

Posted in: Frequently Asked Bankruptcy Questions