The Most Important Arizona Bankruptcy Exemptions
Bankruptcy exemptions in Arizona play a role in both Chapter 7 and Chapter 13 bankruptcy. Through these exemptions, you can protect some of your property because a debtor will be free from having to turn said property to a bankruptcy trustee. Let us see what are the most important Arizona bankruptcy exemptions.
Every state has specific laws that designate properties owners get to keep no matter what. Whenever a person files for bankruptcy, theya��ll be asked what properties are claimed as exempt. A citation of the law that allows such an exemption in Arizona will also be required.
Insurance and Pension Retirement Benefits
All of the life insurance benefits payable to a surviving spouse or a child will be exempt from bankruptcy filing, as long as these assets dona��t exceed 20,000 dollars. In addition, an exemption applies to insurance benefits under health, disability insurance or accident policies.
Whenever the individual has exempt property, they can also make insurance claims for damage or destruction.
As far as pension retirement benefits are concerned, individuals filing for bankruptcy can keep benefits from an array of employee pension systems under Arizona Revised Statutes 33-1126. Tax exempt retirement accounts are also included.
Personal Property Exemptions
There are several different kinds of personal property that a debtor can exempt from the bankruptcy proceedings. A few of these include:
- Household furniture and appliances valued at up to 6,000 dollars
- Clothing worth up to 500 dollars
- Engagement and wedding jewelry valued at up to 2,000 dollars
- Books valued at up to 250 dollars
- Watches valued at up to 150 dollars
- Musical instruments totaling no more than 400 dollars
- Animals that are valued at up to 800 dollars
- Prepaid rent deposits and security deposits that cana��t exceed 2,000 dollars
- Professionally prescribed health and medical supplies
- Youth educational materials
A debtor in Arizona can file for a residential property exemption consisting of interest in property upon which a house or another type of residential real estate sits. The debtor has to reside in said property for the exemption to apply. The cap on this exemption is 150,000 dollars and it cannot be doubled by a spouse.
Other Most Important Arizona Bankruptcy Exemptions
Various other kinds of exemptions could enable Arizona debtors to keep some of their assets and properties. The following list will highlight a few additional options that individuals filing for bankruptcy are entitled to:
- One or more motor vehicles valued at no more than 6,000 dollars. Therea��s one exception from this rule a�� an elderly person or a disabled debtor (or an elderly/disabled spouse of a debtor) can keep vehicles valued at up to 12,000 dollars.
- An exemption applies to food and fuel provisions aimed to last up to six months (the amount is calculated on the basis of the debtora��s individual needs or their family needs).
- A computer, typewriter, bicycle, sewing machine or a weapon that have a fair market value of up to 1,000 dollars.
- Child support and spousal maintenance.
- A bank deposit within the limit of 300 dollars. This sum will still be subjected to bank charges and service fees.
- Public property
- Instruments, tools and other equipment needed for a commercial activity or business proceedings, as long as the fair market value of such tools does not exceed 5,000 dollars.
- 75 percent of the debtora��s disposable earnings (does not apply to a Chapter 13 bankruptcy).
- Various types of unemployment benefits, workera��s compensation benefits, welfare assistance benefits.
One thing to keep in mind that the exemption types and amounts are periodically updated. If youa��re about to file for bankruptcy, you may need to check for such changes or get in touch with an experienced attorney who will let you know what the possibilities and the limits are.