What is exempt from bankruptcy in Arizona?

If a debtor is eligible to file for Chapter 7 per the federal means test, and if a debtor meets the residency requirements to file in the state of Arizona, per federal and state laws, he or she can claim exemptions only from the exemptions list derived from the Arizona Revised Statutes. This means Arizona residents are not eligible to claim exemptions under the federal exemptions list.

The following outlines the more notable aspects of the Arizona exemptions list. However, debtors should recognize that this list is by no means comprehensive or necessarily applicable to their own personal bankruptcy situation. In practice, the only definitive method of determining what of your assets may be exempt is through consulting with a bankruptcy lawyer in the state of Arizona, who can provide insight based on the applicable state statutes and the nature of your current debt and assets.

• Homestead exemption of up to $100,000 for real property, mobile home, or apartment

• Insurance benefits, including accident disability benefits, group life insurance benefits, fraternal benefit society benefits, and a set cash value of life insurance benefits for self, spouse, and dependants

• All property of business partnerships is exempt

• Pensions, including ERISA benefits contributed no less than one hundred and twenty (120) days prior to filing, IRAs, and pension benefits for public safety workers, educators, and state employees

• A large list of personal property and household items are exempt as well, including motor vehicle exemption of up to $1,000, or $4,000 if disabled

• Certain public benefits, such as workers compensation, unemployment compensation, and others, are exempt

• At least seventy-five (75) percent of all earned, but unpaid wages are exempt, with the exception for higher percentages allowed for low income earners, at the discretion of the courts

• There is no wildcard exemption in the state of Arizona

Consult with an Arizona bankruptcy lawyer to learn more about your legal rights and options when filing Chapter 7 in the state of Arizona, including your options under the exemptions list in the state.