Asset Exemptions

The Arizona bankruptcy laws provide for some protection of assets when filing for bankruptcy. This protection is known as asset exemption, and is specifically outlined by Arizona (and federal law) for individual bankruptcy filings. In general, exempt assets include:

  • Modest home
  • Necessary fuel and food for health
  • Necessary furniture and appliances
  • Reasonable clothing and personal items
  • Reliable transportation
  • Tools of work or trade
  • Necessary medical equipment
  • Personal items such as pets, instruments, recreational equipment

These asset exemptions are enough for most debtors to maintain a simple household with reasonable transportation and means of work, and it is a great relief for most to know that they will not be destitute. Asset exemptions are allowed because they uphold the goal of getting out of debt: if everything was taken away, then more debt problems will most likely follow. The bankruptcy court in Arizona provides relief to overwhelmed debtors and help them get back on the right financial track as quickly as possible.

The state of Arizona has its own exemption laws for bankruptcy, and the list of Arizona exemptions is changed and updated over time. A knowledgeable bankruptcy attorney can verify that you have calculated your exemptions correctly. However, if you moved from another state recently, you may need to use that state’s exemptions or federal bankruptcy exemptions depending on the circumstance.

The exempt assets list for each chapter of Arizona bankruptcy is specific. It includes a value limit assigned to exempt assets for EACH adult, and therefore the values may be doubled if you are married. The Arizona homestead exemption applies one value limit that is combined for both spouses. Other non-exempt property can be taken away and used for debt repayment. It is important to consult with an experienced bankruptcy law firm to make certain that you receive the maximum exemptions allowed by Arizona law.