Arizona Exemptions
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):
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 exemptions. 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 if you have not owned the house for more than 1210). 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 (Goodwill, Salvation Army, Deseret Industries) would charge for property of similar kind and condition (used 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, beneficiary must be a family member) | 100% | A.R.S. § 33-1126(A) |
| One single bank account. You can have more than one account but the sum of deposits must not exceed $150 per debtor. | $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). Consider a separate Social Security Account and use that money last if possible. | 100% | 42 U.S.C. 407(a), SEC 207 |