Declaring Chapter 7 in Arizona can be a complicated procedure, luckily you will have your attorney to help you out. The following is a basic overview of the bankruptcy process in Arizona, focusing on the many exemptions available. The bankruptcy laws are different in each state, and for the most part this has to do with the different exemptions that are offered. When taking note of the following exemptions, be sure to keep in mind that this is a complicated subject and your attorney will be better able to go into detail concerning them. This is not meant to be a comprehensive list.
Exemptions for Homestead
First of all, when declaring bankruptcy in Arizona, you'll be happy to know that your primary residence should be safe. The state of Arizona offers an exemption for your homestead which includes, real property, apartments, and mobile homes, up to $100,000. The sale proceeds are exempt for 18 months after the sale or until you have purchased a new home; whichever event happens to occur first. It is not double for husband and wife however. In order to make sure that the proceeds from your homestead are vouchsafed, it is important that you record the homestead declaration before you attempt to sell your home.
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Exemption for Personal Property
There are many different exemptions for personal property when you attempt to declare bankruptcy in Arizona. When it comes to personal property, both husband and wife may double their exemptions. These exemptions are fairly specific for this state and include: two beds and living room chairs per person, one dresser, lamp, table, and bedding per bed; a kitchen room table; a dining room table with four chairs; miscellaneous pictures, paintings, and drawings that you've created; family portraits, a refrigerator, stove, TV, radio, washer, dryer, and vacuum cleaner up to $4,000 total.
Other Miscellaneous exemptions
You will find that you are offered many more exemptions when you declare bankruptcy in Arizona such as: insurance, minor child's earnings, pensions, wages, public benefits, and tools of the trade. Insurance includes fraternal society benefits, group life insurance, health and accident benefits, and life insurance up to $1,000. Wages include a minimum of 75 per cent of any wages that were earned but not yet received and pension payments. Your judge may allow you more if you earn only a small income. There are many other different exemptions that you may be allowed, so be certain to consult with a bankruptcy attorney.
