Can I keep my car if I file bankruptcy in Arizona?

Yes — in the vast majority of Arizona bankruptcy cases you keep your car. A.R.S. § 33-1125(8) exempts $15,000 of equity in a motor vehicle (base amount), increased to $25,000 if you or a dependent is physically disabled. With Arizona's annual inflation adjustments, the 2026 figures are approximately $16,500 and $27,500.

Remember the exemption protects equity, not the car's full value. If your car is worth $20,000 but you owe $12,000 on the loan, you only have $8,000 of equity — comfortably within the exemption. If you are still making payments, you generally keep the car by staying current or reaffirming the loan.

Because the adjusted amounts are computed under the Prop 209 CPI formula and not officially published by the state, your attorney will confirm the exact figure that applies on your petition date.