National Divorce & Bankruptcy Center
Arizona Bankruptcy Property Exemptions:
What You Can Keep
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EXEMPT PROPERTY: The property you can keep after
bankruptcy.
Some property in many states is exempt regardless of
its value i.e. "all personal possessions". Many states also have a 'wild card'
exemption which can be applied to any type of property or split among several
different items.
An exemption limit means that any equity above the limit is
'non-exempt'. Equity is the difference between the value of the property
and what is owed on the property. For example, a car valued at $4000 with a lien
of $3500 has an equity value of only $500 subject to exemption.
To keep non-exempt property, a debtor must generally pay the trustee the
value of the non exempt property to be distributed to creditors.
Bankruptcy law allows married couples filing jointly to each claim a full set
of exemptions doubling the exemptions. Unless otherwise noted in the following
exemption list, married couples may double the exemption amount given.
Note: the value of property for bankruptcy exemption purposes has been
generally accepted to be the Garage sale value of the property
Federal bankruptcy exemptions are not available to Az. residents
Homestead
- Real property, an apartment or mobile home you occupy to $100,000; sale
proceeds exempt 18 months after sale or until new home purchased, whichever
occurs first (husband and wife may not double the homestead exemption.
- You must record the homestead declaration before sale of the home.
Insurance:
- Disability, Health, or Accident benefits
- Fraternal benefit society benefits
- Life insurance cash value to $1,000 per dependent ($25,000 total). Husband
and wife may not double the amount
- Life insurance cash value to $2,000 per dependent ($10,000 total)
- Life insurance proceeds to $20,000 if beneficiary is spouse or child
(husband and wife may not double the amount)
Miscellaneous
- Property of business partnership
- Earnings of minor child unless the debt is for child
Pensions
- Board of Regents members
- State employees
- ERISA qualified benefits deposited more than 120 days before filing
bankruptcy
- IRA's
- Public safety personnel
- Firefighters
- Police officers
- Rangers
Personal Property(Husband & Wife may double all personal property
exemptions)
- 2 beds & 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
- Bank deposits to $150 in any one account
- Bible; bicycle; sewing machine; typewriter; burial plot; rifle, pistol or
shotgun to $500 total
- 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
instruments to $250; prostheses including wheelchair
- Food and fuel to last 6 months
- Motor vehicle to $1500 ($4000 if disabled)
- Prepaid rent or security deposit to $1,000 or 1 1/2 times your rent
whichever is less, in lieu of homestead
- Proceeds for sold or damaged exempt property
Public Benefits
- Welfare benefits
- Unemployment compensation
- Worker's Compensation
Tools of the Trade
- Arms, uniforms & accoutrements you're required to keep
- Farm machinery, utensils, seed, instruments of husbandry, feed, grain, and
animals to $2500 total (husband and wife may double the exemption amount
- Teaching aids of teacher
- Tools, equipment, instruments and books (except vehicle driven to work)to
$2500
Wages
- Minimum of 75% of earned but unpaid wages, pension payments; bankruptcy
judge may authorize more for low income debtors
Wild Card
Non-Bankruptcy Federal Exemptions are available to those
claiming state exemptions in addition to the exemptions of their state.
Return to State Exemptions
A wide variety of information is available at our main bankruptcy site