Arizona Bankruptcy Property Exemptions
Can I Keep My Assets if I File Bankruptcy?
Many people mistakenly believe that if they file for bankruptcy they will lose all of their assets. You have worked hard for your home, your car and other valuables. We want to assure you that bankruptcy laws are there to protect you and to help you regain financial stability.
Arizona law allows bankruptcy exemptions for your personal property and real estate. This means that many of your belongings are off limits to your creditors. Some exemptions are unlimited. Other exemptions have monetary limits.
If you have lived in Arizona for two years prior to filing for bankruptcy, these exemptions apply to you:
- Equity in your home — $150,000
- Equity in your Car — $5,000
- Cash on hand or in your checking account — $150,000
- Retirement Accounts – most are unlimited
- Pensions – most are unlimited
- Unemployment Compensation – unlimited
- Worker’s compensation – unlimited
Chapter 7 Bankruptcy Exemptions
In a Chapter 7 liquidation bankruptcy, a trustee is appointed to oversee your case. The trustee may legally sell your property to pay your creditors. Under Arizona law, you are protected from losing much of your personal property by claiming the allowable exemptions.
In addition, 95% of all Chapter 7 Bankruptcy cases are “no-asset cases,” – meaning that the bankruptcy court decides that your assets are not high enough in value and that it would be impractical to liquidate them.
Maximizing Your Arizona State Exemptions
An experienced Tucson bankruptcy attorney at the Vidrine Law Firm, PLC, can meet with you during a free consultation and review your economic situation.
He can tell you which Arizona bankruptcy property exemptions apply to you. He will maximize the exemptions to protect your assets in a Chapter 7 or Chapter 13 bankruptcy.
Call today to arrange for a first free consultation at 520.885.1106. We have offices in Oro Valley and in downtown Tucson to serve you.
