Bankruptcy Exemptions in Arizona: Learn About Protected Assets
The Arizona bankruptcy code defines a set of bankruptcy exemptions that allow the individual debtor to protect certain property from creditors' claims.
March 19, 2011
The fundamental difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy involves the concepts of liquidation and reorganization of debt. Under Chapter 7, most unsecured debt is eliminated by "liquidating" assets of the applicant to provide funds to those creditors. But one of the myths about bankruptcy is the fear that Chapter 7 can therefore cause you to lose your car, home and other essential property.In fact, the bankruptcy code defines a set of bankruptcy exemptions that allow the individual debtor to protect certain property from creditors' claims. Arizona is one of many states that have adopted their own exemptions that work in conjunction with federal bankruptcy laws, and the list of assets is extensive. Some things that are exempt from liquidation:
- Equity in real estate that is a primary residence up to $150,000 (this figure is the same for an individual or married couple)
- Household items up to $4,000, including furniture, appliances and art
- One car with a fair market value up to $5,000
- Six months worth of food and fuel
- Personal apparel, jewelry, books and other items up to a certain value
- Life insurance proceeds up to $20,000, earnings by a minor child, child support and alimony payments, disability benefits, and certain other benefits and proceeds
The importance of compiling an accurate and thorough record of all items eligible for Chapter 7 bankruptcy exemption is just one of the factors that make it important to work closely with an experienced Arizona bankruptcy lawyer.
An Arizona Bankruptcy Attorney Can Help You Understand Debt Relief Strategies
The U.S. Bankruptcy Court, District of Arizona, offers this clear advice in its publication on Arizona bankruptcy exemptions: "Legal counsel should be consulted to determine what property can be claimed as exempt and how to apply the value limitations found in the Arizona statute."
Taking full advantage of bankruptcy exemptions is just one way that a debt relief lawyer can help you look forward to a secure financial future. Whether you have questions about Chapter 7, Chapter 13 or other consumer debt relief options such as stopping creditor harassment, stopping foreclosure or improving your credit rating, an initial consultation at a bankruptcy law firm can help you understand the necessary steps for your unique situation.
Article provided by Clark Law Offices
Visit us at www.maricopacountybankruptcyattorney.com/