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If your vehicle is free and clear, is worth less than $6000, and you have lived in Arizona for more than 2 years, then your vehicle is protected under the Arizona Personal Property Exemption law. If you are upside down on you vehicle loan, current on the payments, and it is fully insured, there is very little risk of losing your vehicle in a bankruptcy. Even if these scenarios don’t apply to your situation, most clients can keep their vehicles in a Chapter 13 repayment plan if they can afford to pay for the vehicle otherwise.

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