LAW OFFICE OF D.L. DRAIN

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 Phoenix, AZ 85015

Phone: 602.246.7106

Fax: 602.249.1969

 DDrain@DianeDrain.com

 
   


   
 

 

ARIZONA EXEMPTIONS
These exemptions may change from time to time.

Do not apply them to your situation without consulting legal counsel.

 

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The following exemptions are used for anyone that is a permanent resident of Arizona.  Each state has a different list of exemptions (list of exemption for other states - beware, I have no idea if their information is accurate: BankruptcyAction.com and TotalBankruptcy.com).  With the 2005 changes in the Bankruptcy Laws this has dramatically changed. so it is even more important that you talk to an experienced bankruptcy attorney in your state.

What state do you use for your exemptions? The state you lived in for the 730 days (2 years) before filing; or If you did not live in one single state in the previous 2 years, then use the state where you lived the majority of the 180 period preceding the last 2 year period; or If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.  (Confusing?  Send your thanks to Congress)

Assuming that you lived in Arizona for the last 2 years, then these exemptions apply whether you are filing for bankruptcy protection, or just wondering what items you own are usually protected from your creditors. The Arizona Legislature can amend these.  Therefore you need to confirm their accuracy before making any decisions that could impact your financial situation.  There are also additional time periods of 10 years, 1210 days and others that impact the assets you can protect in bankruptcy.

If you are filing for bankruptcy protection and reside in Arizona then you must use this list of exemptions and cannot use of federal bankruptcy exemptions in 11 U.S.C. 522(d).  See A.R.S. § 33-1133.)

Pursuant to A.R.S. § 33-1121.01 - each spouse/person has separate exemption.  Therefore, $4,000 in household furnishings is for each adult in the house.   The exception to this rule is the homestead which is capped at $150,000 per home (A.R.S. § 33-1101) (but may be $125,000 in bankruptcy).  In order to qualify for a homestead the residence must be your primary residence.   Items not on this list are not protected from your creditors.  Nor, are items on this list protected from creditors that have liens on the property: for example a Deed of Trust on the home or security interest in personal property (charging your refrigerator at Sears using a Sears card, or using items as collateral for personal loans.)  All property set forth below may be executed upon for back child support and/or alimony/maintenance.  The law changes occasionally and you must make sure that you have the latest list of exemptions.

The dollar amounts listed below are the resale, not retail, value of the items (e.g.: what your couch would sell for at a yard sale is the resale value).  But, if you are filing for chapter 7 or 13 bankruptcy and have personal property (not land/house) that has a lien or security interest, then you must use the "replacement value - the price a retail merchant would charge for property of similar kind and condition. §506(a)(2)

TYPE OF PROPERTY

AMOUNT OF EXEMPTION

STATUTE

Homestead, consisting of debtor’s equity in real property used as residence. 1 apartment of horizontal property regime, or mobile home and land upon which located.

$150,000 (as of 8/25/04) – as against nonconsensual liens. Total exemption of $150,000 for both spouses. Applies to identifiable cash proceeds of homestead sale for 18 months after sale.

A.R.S. § 33-1101

A.R.S. § 33-1104 – consensual liens

Excluded; A.R.S. § 33-1102

(recording not required)

Kitchen table/4 chairs: dinning table/4 chairs (plus 1 for each dependant over 4), Living room: couch, chair, plus 1 chair per dependant, 3 coffee/end tables, 3 lamps, rug: 2 beds, plus 1 per dependant, bed table, dresser, lamp, bedding for each: pictures, oil Paintings and drawings made by debtor, family portraits,

TV or stereo, radio, stove, refrigerator, washer, dryer, vacuum.

 

 

$4,000 aggregate value

 

 

A.R.S. § 33-1123

Food, fuel and provisions for 6 months used by Debtor

and family

 

100%

 

A.R.S. § 33-1124

Wearing apparel

$500

A.R.S. § 33-1125

Musical instruments of Debtor and family

$250

A.R.S. § 33-1125

Domestic pets, horses, milk cows and poultry

$500

A.R.S. § 33-1125

Engagement and Wedding rings

$1,000

A.R.S. § 33-1125

Library

$250

A.R.S. § 33-1125

Typewriter, bicycle, sewing machine, family bible, burial lot,

rifle, shotgun or pistol.

 

$500

 

A.R.S. § 33-1125

Watch

$100

A.R.S. § 33-1125

Motor Vehicle (name must be on the title to claim exemption)

$5,000 ($10,000 if maimed or crippled)

A.R.S. § 33-1125

Wheel Chair and prescribed health aids

100%

A.R.S. § 33-1125

Interest in retirement plan qualified under Internal Revenue Code 401(a), 403(a)(b), 408, 408(a), 409, 457 (deferred comp)

100% (except contributions within 120 days before filing petition

 

A.R.S. § 33-1126(C)

Prepaid rent and security deposits for Debtor’s residence

Lesser of $1,000 or 1 ½ months rent.

A.R.S. § 33-1126(D)

Life Insurance proceeds paid or payable to surviving

Spouse or child.

 

$20,000

 

A.R.S. § 33-1126(A)

Earning of minor child

100%

A.R.S. § 33-1126(A)

Health, accident or disability insurance

100% (certain debts excepted)

A.R.S. § 33-1126(A)

Insurance proceeds for damage or destruction of exempt

property

100% of exemption given for damaged or destroyed property.

 

A.R.S. § 33-1126(A)

Cash surrender value of life insurance policies owned by the   debtor (owned for at least two unexpired continuous years).

 

$25,000 (beneficiary must be a dependant)

 

A.R.S. § 33-1126(A)

Damages for wrongful levy or execution

100%

A.R.S. § 33-1126(A)

Annuity (owned for at least 2 years, bene. must be family)

100%

A.R.S. § 33-1126(A)

One single bank account.

$150

A.R.S. § 33-1126(A)

Necessary tools, equipment, instruments and books used                in business or profession.

$2,500 (does not include personal motor          vehicle)

 

A.R.S. § 33-1130

Machinery, utensils, fee, grain, seed and animals of farmer.

$2,500 (primary income from farming)

A.R.S. § 33-1130

Arms, uniforms/ accoutrements required by law

100%

A.R.S. § 33-1130

Net disposable earnings (less deductions required by law) includes pension and retirements payment until deposited into bank account.

75% or 30 X the federal minimum hourly wage, per week, whichever is greater. One half for child support obligations.

 

 

A.R.S. § 33-1131

Unemployment compensation benefits

100%

A.R.S. § 23-783

Workmen’s compensation benefits

100%

A.R.S. § 23-1068

Welfare assistance

100%

A.R.S. § 46-208

Child support or maintenance

100%

A.R.S. § 33-1126(A)

Firemen’s relief and pension benefits

100%

A.R.S. § 9-968

Police pension benefits

100%

A.R.S. § 9-931

Teacher’s retirement benefits

100%

A.R.S. § 43-1201

State employee’s retirement benefits

100%

A.R.S. § 38-792

Fraternal Benefit Society benefits

100%

A.R.S. § 20-881

School Equipment used to teach

100%

A.R.S. § 33-1127

Firefighting equipment

100%

A.R.S. § 33-1128

Property that belongs to the public

100%

A.R.S. § 33-1129

Social Security (protected in bank account if not co-mingled)

100%

42 U.S.C. 407(a), SEC 207

 goldbreak.JPG    Arizona Exemptions    goldbreak.JPG

 

 

DISCLAIMER This site is not intended to be advertising and the Law Office of D.L. Drain, P.A. and the attorneys employed by that firm do not seek to represent anyone in a state where this site may fail to comply with all laws and ethical rules of that state.  The information provided in this web site is for general information purposes only. All the documents, forms and information on these web pages are generic in nature and must not be regarded as legal advice. The law changes periodically and we make no representations that any of the information is accurate. You are not to make any inference from this website that our firm represents you or would be able to represent you; or that the information contained herein applies to your specific circumstances. You must seek legal counsel to ascertain your rights and obligations.

 

 

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