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What property is exempt from Chapter 7 in Arizona?
I recently lost my job, and my wife had to take a pay cut. We have gotten into a situation where we are out of options, and are considering bankruptcy. However, before we do, I want to know what property will be protected from the trustee.
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If I File for Bankruptcy in Nevada, Can I Keep My House?
We are thinking about filing bankruptcy, because we’ve got far too much credit card debt to ever get out from under all the debt. Additionally, we...What property is exempt from Chapter 7 in Arizona?
I recently lost my job, and my wife had to take a pay cut. We have gotten into a situation where we are out of options, and are considering bankru...This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case.
Answers
In Arizona, the two major exemptions are the homestead exemption and the automobile exemption. The homestead exemption removes $150,000 from the bankruptcy estate, effectively protecting your equity from the bankruptcy process.
Additionally, you can claim up to $5,000 of equity in a car exempt. If you owe more on the car than what it is worth, you can claim that difference as unsecured, and it can be “crammed down” meaning you can reduce the principle owed on the car down to the fair market value.
In almost all chapter 7 bankruptcy cases, the petitioners will end up keeping all of their property. Even that property which is not covered by the available exemptions can be kept in other ways, such as reaffirmation or redemption.
Talk to a bankruptcy lawyer to find out if bankruptcy is really a good option for you.
References:
Posted by Domenica Ginocchio on 30 Mar 2010
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