The Arizona bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Arizona. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Arizona you may also use certain federal exemptions in addition to your Arizona exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD
| Real property; an apartment or mobile home you occupy to $150,000; sale proceeds exempt 18 months after sale or until new home purchased, whichever occurs first (husband and wife may not double) |
33-1101 |
Must record homestead declaration before attempted sale of home | 33-1102 | |
PERSONAL PROPERTY husband and wife may double all personal property exemptions | 2 beds and living room chair per person; 1 dresser, table, lamp, bedding per bed; kitchen table; dining room table and 4 chairs (1 more per person); living room carpet or rug; couch; 3 lamps; 3 coffee or end tables; pictures, paintings, drawings created by debtor; family portraits; refrigerator; stove; TV, radio or stereo; alarm clock; washer; dryer; vacuum cleaner to $4,000 total | 33-1123 |
Bank deposit to $150 in one account | 33-1126(A)(8) | |
Bible; bicycle; sewing machine; typewriter; burial plot; rifle, pistol or shotgun to $500 total | 33-1125 | |
Books to $250; clothing to $500; wedding and engagement rings to $1,000; watch to $100; pets, horses, milk cows and poultry to $500; musical instrument to $250; prostheses, including wheelchair |
33-1125 | |
Food and fuel to last 6 months | 33-1124 | |
Motor vehicle to $1,500 ($4,000, if disabled) | 33-1125(8) | |
Prepaid rent or security deposit to $1,000 or 1-1/2 times your rent, whichever is less, in lieu of homestead | 33-1126(D) | |
Proceeds for sold or damaged exempt property | 33-1126 (A)(5), (7) | |
INSURANCE | Fraternal benefit society benefits | 20-881 |
Group life insurance policy or proceeds | 20-1132 | |
Health, accident or disability benefits | 33-1126(A)(3) | |
Life insurance cash value to $1,000 per dependent ($25,000 total) (husband and wife may double) | 33-1126 \(A)(3) | |
Life insurance cash value to $2,000 per dependent ($10,000 total) | 20-1131(D) | |
Life insurance proceeds to $20,000 if beneficiary is spouse or child (husband and wife may double) | 33-1126(A)(1) | |
MISC. | Minor child's earnings, unless debt is for child | 33-1126(A)(2) |
Property of business partnership | 29-225 | |
PENSIONS see also wages | Board of regents members | 15-1628(I) |
ERISA-qualified benefits deposited more than 120 days before filing bankruptcy | 33-1126(B) | |
IRAs | In re Herrscher, 121 B.R. 29 (D. Ariz. 1990) | |
Firefighters | 9-968 | |
Police officers | 9-931 | |
Public safety personnel | 38-850(C) | |
Rangers | 41-955 | |
State employees | 38-762 | |
| PUBLIC BENEFITS | Unemployment compensation | 23-783 |
| Welfare benefits | 46-208 | |
| Workers' compensation | 23-1068 | |
| TOOLS OF TRADE | Arms, uniforms and accouterments you are required to keep | 33-1130(3) |
| Farm machinery, utensils, seed, instrument of husbandry, feed, grain and animals to $2,500 total (husband and wife may double) | 33-1130(2) | |
| Teaching aids of teacher | 33-1127 | |
| Tools, equipment, instruments and books (except vehicle driven to work) to $2,500 | 33-1130(1) | |
| WAGES | Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors | 33-1131 |
For more information on filing bankruptcy in Arizona explore Arizona Bankruptcy Law.
