Arizona Bankruptcy Exemptions: Not All is Lost When Filing

bankruptcy exemption, AZ bankruptcy lawyer, bankruptcy attorney, Phoenix bankruptcy atorneyWhen a person files for bankruptcy, he or she may not have to give up all owned property. In fact, exemptions help to ensure the safety of various assets when bankruptcy is filed. According to the United States Bankruptcy Court, District of Arizona, an exempt property means the “debtor may keep the property and does not have to turn it over to the bankruptcy trustee.”

Several bankruptcy exemptions protect specific types of property, according to Nolo.com. And depending on the exemption, the entire value of the asset may be protected or will be protect up to a certain dollar amount. Personal property exemptions in Arizona include:

  • “All wedding and engagement rings with a total fair market value not greater than $2,000,” as noted under statutory provision A.R.S. § 33-1125(4).
  •  “Equity in one car not greater than $6,000,” as noted under statutory provision A.R.S. § 33-1125(8).
  • “All food, fuel and provisions for the debtor’s individual or family use to last up to six months,” as noted under statutory provision A.R.S. § 33-1124.
  • “Household furniture and furnishings, household goods, including consumer electronic devices, and household appliances personally used by the debtor or a dependent of a debtor and not otherwise specifically prescribed in this chapter in an amount not greater than $6,000 (total fair market value),” as noted under statutory provision A.R.S. § 33-1123.
  • “One typewriter, one computer, one bicycle, one sewing machine, a family bible, a burial plot, one shotgun or one rifle or one pistol, with a total fair market value not greater than $1,000,” as noted under statutory provision A.R.S. § 33-1125(7).

If you are planning to file for bankruptcy in 2014, please contact an experienced Phoenix bankruptcy attorney who can guide you through the process and properly explain bankruptcy exemptions.

Arizona Exemption Info

It is good to have some idea of the legal intricacies you might be dealing with when filing for bankruptcy, so we will go through some of the exemptions in Arizona bankruptcies. Bear in mind, however, that having the basic knowledge is not the same as having an experienced bankruptcy attorney on your side. As it is said in the United States Bankruptcy Court District of Arizona’s information release: “This pamphlet is not intended to give you legal advice, and it is not a substitute for the legal advice specific to your situation that you should obtain from a qualified attorney.”

Bankruptcy exemptions are a way to let you keep some of your property in case of a bankruptcy. We recently discussed the homestead exemption in our blog, so it makes sense to discuss the personal property exemption next.

The Arizona Personal Property Exemption allows husband and wife to double personal property exemptions, and here are a few assets that are listed under this exemption with the main guideline of “Household furniture, furnishings and appliances personally used by debtor in an amount not to exceed $4000 (fair market value)” :

– one kitchen and one dining room table with four chairs each, plus one chair per each dependent resident after the total exceeds four

– one living room couch

– two beds, plus one additional bed for each dependent of the debtor who resides in the household

– one bed-table, dresser and lamp for each bed allowed above

– bedding for each bed allowed above

– one television set or radio or stereo

– one stove

– one refrigerator

– one washing machine

- one clothes dryer

- one vacuum cleaner

The full list can be found in the exemption information release, but a knowledgeable bankruptcy lawyer will know exactly what you are entitled to when you are going through your bankruptcy proceedings. Basic information can help you understand what you are dealing with, but nothing can replace the help of a skilled bankruptcy attorney. Contact our bankruptcy attorneys today.