Arizona Homestead Exemption

Exempt assets are those belongings that you are allowed to keep when you file for bankruptcy. Keeping your home in bankruptcy is a natural concern to anyone considering filing for bankruptcy. One of the simplest ways to keep your home after bankruptcy is if the state allows for homestead exemption as Arizona does, though not all states do.

The lawmakers in the state of Arizona have defined bankruptcy statutes for the state, and therefore not all Federal bankruptcy exemptions or limits apply. The Arizona homestead exemption is limited to $150,000 dollars, with this limit being shared between spouses, not doubled. The homestead exemption is for the value of the home in equity, not in sales price. For example, if the home is worth $400,000 and the mortgage is for $250,000, then the equityin the home is $150,000. There are other considerations for the homestead exemption, such as how long you have owned and lived in the home and whether or not you have been convicted of specific felonies. Seek legal advice from an experienced bankruptcy attorney if it is possible that these special circumstances could apply to your case.

Homestead Exemption in Chapter 7 and Chapter 13

Taking advantage of the homestead exemption is possible in both Chapter 7 bankruptcy and Chapter 13 bankruptcy. There are other procedures, such as lien strips, that are only available to those who file for Chapter 13 bankruptcy and may make a significant difference in which bankruptcy chapter you choose to file in the Arizona bankruptcy process.

To be sure that you are calculating your exempt assets correctly, consult with an experienced bankruptcy lawyer in the state of Arizona. They can help you determine the maximum exemptions you are entitled to under AZ law, and ensure that you are able to take full advantage of the Arizona homestead exemption and other asset exemptions.