Property Exemptions in Arizona Bankruptcy
One of the main concerns, and myths, about filing bankruptcy is that you are going to lose everything and be left on the street with nothing. In fact, nothing could be further from the truth.
The U.S. Bankruptcy Code was not written so that people who find themselves in financial difficulty are left with nowhere to turn after bankruptcy. Bankruptcy is intended to give debtors a fresh start and that includes being able to keep certain essential property in order to live a normal, productive life.
In a Chapter 13 proceeding, the court does not take any property because you are paying back your debt over time. In a Chapter 7 bankruptcy, your nonexempt property is sold and the funds are distributed to your creditors to satisfy your debt. But you get to keep your exempt property.
So What is Exempt Property?
There is certain property that debtors are allowed to keep after a bankruptcy that cannot be liquidated including a home, a car and other necessary items. If you still owe money on a mortgage or a car loan, however, bankruptcy does not eliminate your responsibility for keeping up with future payments.
Among the property exemptions in Arizona are the following:
- Your home, up to a certain level of equity
- Your car, within value limits
- Necessary clothing
- Household goods including television, furniture and appliances
- Jewelry and family heirlooms
- Tools needed to do your job
- Your income
- Your pension
- Welfare, social security, unemployment and similar benefits
- Funds from legal settlements like personal injury
At the Phoenix, Arizona, law office of Joseph C. McDaniel, P.C., we will help you understand everything you need to know about property exemptions. Our attorney, Joseph C. McDaniel, is recognized by the Arizona Board of Legal Specialization as a Bankruptcy Specialist and has been practicing law in this area since 1980.
Schedule a Free Initial Consultation
Contact our office today to discuss your exemption questions with a lawyer. We are located next to the Arizona Biltmore golf resort. Call 602-297-3025 or send us an email to get started.
We are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code.
