House of Representatives

SB 1175

personal property exemption; automobile

Sponsors: Richardson, Solomon; Voss, et al

DP	Committee on Commerce and Economic Development
dp	Committee on Judiciary
x	Caucus and COW
	As Passed the House

SB 1175 increases the fair market value (FMV) exemption for a personal motor vehicle during any debt collection process, including bankruptcy.

History

The value of certain personal property is exempt from a court or judicial process. Title 33, Section 1121, Arizona Revised Statues, specifically provides for the following:

“Process” means execution, attachment, garnishment, replevin, sale or any final process issued from any court or any other judicial remedy provided for collection of debts. (emphasis added)

Under current law property used by the debtor primarily for personal, family, or household purposes is exempt such as:

· All wearing apparel not in excess of a FMV of $500.

· Domestic pets, horses, milk cows and poultry not in excess of FMV of $500.

· All engagement and wedding rings not in excess of a FMV $1,000.

· One motor vehicle not in excess of $1,500 or $4, 000 if the debtor is disabled.

SB 1175 increases the amount of the motor vehicle exemption from $1,500 to a FMV of $5,000. In addition, the bill raises the exemption for a disabled debtor from $4,000 to $10,000.

Provisions

· Increases the motor vehicle FMV exemption during the debt collection process from $1,500 to $5,000.

· Increases the FMV exemption for individuals referred to in statute as maimed or crippled from $4,000 to $10,000.

· Changes maimed or crippled to physically disabled.

SB 1175 passed the Committee on Commerce and Economic Development unamended.

SB 1175 passed the Judiciary Committee unamended.

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45th Legislature

First Regular Session 2 April 5, 2001

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