Many of the exemptions available when filing bankruptcy in Arizona are listed below. Arizona residents cannot use the federal bankruptcy exemptions, and must instead file under state bankruptcy laws. Some of the amounts listed may be higher for married couples filing bankruptcy together. Please consult an attorney for more details on how to file for Arizona bankruptcy.

Homestead (equity in dwelling used as residence)

  • Up to $150,000 in value
  • Unlimited area of property, includes mobile homes
  • If no homestead exemption is claimed, prepaid rent/security deposit up to $2,000

Equity in Automobile

  • Up to $6,000 of value in one or more motor vehicles
  • Up to $12,000 of value in one or more motor vehicles if elderly/disabled

Personal property

The following property are exempt and are unlimited unless stated otherwise:

  • Food, fuel, and provisions for up to 6 months
  • Household furnishing/goods, including electronics and appliances, up to $6,000
  • Wearing apparel up to $500
  • Musical instruments up to $400
  • Domestic pets, horses, cows, and poultry up to $800
  • Engagement/wedding rings up to $2,000
  • Library (books, manuals, published materials, personal documents) up to $250
  • One watch up to $150
  • One typewriter, one computer, one bicycle, one sewing machine, a family bible, a lot in any burial ground, and/or one shotgun, rifle or pistol, up to a total of $1,000
  • Prostheses, including wheelchair 

Wages

  • 25% of disposable income
  • $300 in bank deposits

Tools of the trade

  • Tools of the trade up to $5,000
  • Farm machinery, equipment, and animals, up to $2,500
  • Arms, uniforms, and accoutrements required by law
  • Instructional materials of a teacher
  • Firefighting equipment

Insurance

  • Fire or property damage insurance claim benefits on any exempt property
  • Payments to a beneficiary of a health, disability, or accident insurance policy
  • Cash surrender value of life insurance held for more than two years
  • Life insurance proceeds of up to $20,000
  • Fraternal benefit society benefits 

Pensions and Retirement

  • Benefits from ERISA-qualified retirement plans, including deferred compensation plans
  • IRAs and other retirement accounts exempt under the Internal Revenue Code 
  • State/public employee pension plans and retirement benefits
  • Federal employee retirement benefits 

Public benefits

Alimony and Child Support

  • All money paid pursuant to a court order

Other

  • An interest in a college savings plan

Do I Need a Bankruptcy Lawyer?

Bankruptcy is a very complicated process, and it is important to file correctly for exemptions under applicable Arizona law. A bankruptcy lawyer may be able to help you through the process, and make sure that all paperwork is filed correctly.