Bankruptcy

Arizona Bankruptcy Exemptions

Arizona bankruptcy exemptions do not allow its residents to use federal set of exemptions. Your rights are limited to use only the state specific exemptions, which are as follows. However, you are allowed to use the federal supplemental exemptions in addition to the following.

Pensions

Certain types of pensions are exempted 100%, such as District employee pensions, Ranger pensions, State employee disability and retirement benefits, IRAs and Roth IRAs, Firefighter pensions, Police officer pensions, Federal pension exemptions, and pension benefits to Arizona Board of Regents members.

Public Benefits

Welfare assistance benefits and workers’ compensation benefits are exemptible in full. Arizona bankruptcy exemptions also have provisions for unemployment compensation benefits, but certain conditions apply.

Insurance

Insurance benefits are also exempted in the state of Arizona as per the following terms -
- accident, health, or disability benefits – 100%
- Group life insurance policy or proceeds – 100%
- Benefits from a fraternal benefit society – 100%
- Insurance proceeds, where the spouse or child of the debtor is the beneficiary – up to $20000
- Proceeds or cash value or an annuity contract or an insurance policy – 100% (the beneficiary must be a dependent member of the family of the debtor and the policy must be at least two years old

Personal Assets And Properties

Arizona bankruptcy exemptions have one of the longest list for personal assets and properties, which is as follows –
- Security deposits made to landlord – 1.5 times of the rent or $1000, whichever is less. (For a married couple, it is either 1.5 times the joint rent or $2000, whichever is less)
- Bank deposits – married couple can exempt a maximum of $300 while an individual can exempt up to $150 (in each account)
- Proceeds from the loss or sale of an exemptible asset – 100%
- Wheel chair or other professionally prescribed prostheses either for the bankrupt individual or for one of his/her dependent family member
- Motor vehicle – a maximum of $10000 for a married couple and up to $5000 for an individual
- Musical instruments – a maximum of $500 for a married couple and up to $250 for an individual
- Pets, poultry, milk cows, and horses – a maximum of $1000 for a married couple and up to $500 for an individual
- Watch – up to $200 for a married couple and a maximum of $100 for an individual
- Engagement and wedding rings – a maximum of $2,000 for a married couple and up to $1,000 for an individual
- Clothing – a maximum of $2,000 for a married couple and up to $1,000 for a single person
- Books – a maximum of $500 for a married couple and up to $250 for a single person
- Shotgun, pistol, rifle, burial plot, typewriter, sewing machine, bicycle, and Bible – a maximum of $1,000 for a married couple and up to $500 for an individual
- Food and fuel – needed for six months
- Funeral deposits – a maximum of $10,000 for a married couple and up to $5,000 for a single person
- Recovery for wrongful death – 100%

Household Properties

As per the laws regarding Arizona bankruptcy exemptions, household properties are exemptible up to $8,000 for a married couple and up to $4,000 for an individual. These properties include the following –
- One alarm clock
- One radio
- One TV
- One vacuum cleaner
- One dryer
- One washer
- One stove
- One refrigerator
- All family portraits
- All personal drawings
- All paintings
- All pictures
- Three coffee or end tables
- Three lamps
- One living room chair per individual
- One couch
- living room rug or carpet
- One dining table with four chairs one per individual
- One kitchen table
- One bedroom lamp
- One bedroom table
- One dresser
- Two sets of bedding
- Two beds

Miscellaneous

Proceeds from child support and spousal support are exemptible to the extent needed for support. Earnings of a minor child can be exempted in full unless some of the debts were taken for the benefit of the child.

Wages

Either 30 times the federal minimum hourly or 75% of the earned wages that are yet to be paid is safe (whichever is less). However, the court has the right to grant higher exemptions for debtors with very low income.

Tools Of Trade

Following tools of trade are safe under Arizona bankruptcy exemptions -
- Accoutrements, uniforms, and arms of any office or profession as required by law – 100%
- Animals, grain, feed, instruments of husbandry, seeds, utensils, and Farm machinery – a maximum of $5,000 for a married couple and up to 2,500 for an individual
- Books, instruments, equipment, and tools – a maximum of $5,000 for a married couple and up to $2,500 for an individual
- teaching aids and library for a teacher – 100%

Homestead

Equity in a mobile home, an apartment, or in any real residential property can be exempted up to $150,000. The limit here is same for both individuals and married couples. If you have multiple parcels that you can claim as a homestead, you will have to submit a homestead declaration in advance, explaining which parcel you want to use the homestead exemptions for.

It is important to note that Arizona bankruptcy exemptions have no provisions for wild card exemptions. Likewise, it is mandatory to submit homestead declaration before attempted sale of any real property.


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