Each state has its own set of exemption statutes that exempt certain types of property.  This prohibits or restricts creditors from taking specific items under certain conditions. Arizona has exemptions that protect a portion of your “homestead”, household goods, a vehicle, guns, work tools, etc.Because of this, most bankruptcy filers do not lose much if anything while going through the bankruptcy process.  Arizona’s  exemptions are fairly generous when compared to most other states.

If you are new to Arizona, you must have lived in Arizona for at least two years before Arizona’s exemption statutes apply.  While you can file bankruptcy in Arizona after you have lived here for a little over three months, until you have lived here for two years, you will be required to use the exemptions from your last state of residence, or federal, whichever applies.

Normally this isn’t a big problem, but there are states that have less favorable exemption statutes that protect much less property than Arizona’s laws do.  Before filing a bankruptcy it is important to review applicable exemption statutes in order to evaluate what property you own that may be at risk.

You can review Arizona’s exemptions by downloading or opening this adobe pdf file provided by the District of Arizona Bankruptcy Court.

Arizona Bankruptcy Exemptions pdf