ARIZONA BANKRUPTCY LAW

Arizona Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Arizona Bankruptcy Statistics: In Arizona, 16,583 bankruptcies were filed in 2009. Personal bankruptcies accounted for 15,964 or 96.27% of the total and business bankruptcies accounted for 619 or 4% of the total.

Arizona State Bankruptcy Exemptions:

Homestead

The home (“homestead”) is exempt from bankruptcy for up to $150,000 for either a single person or a married couple. Both real property and personal property such as a mobile home are covered under this exception. Proceeds from the sale of the home are exempt for up to eighteen months prior to filing for bankruptcy.

If the debtor has more than one parcel that might be claimed as a homestead, the debtor must record a homestead declaration in order to identify a parcel to be used for the exemption.

Personal Property

Proceeds from any sold or damaged exempt personal property is also exempt.

The following items are entirely exempt when filing bankruptcy in Arizona:

1. Damages recovered in a wrongful death claim
2. Professionally prescribed prostheses for the debtor or a dependent of the debtor, including a wheelchair

The following exemptions are subject to limitations:

1. Funeral deposits up to a value of $5,000 for a single person and $10,000 for a married couple
2. Books up to a value of $250 for a single person and $500 for a married couple
3. Clothing up to a value of $1,000 for a single person and $2,000 for a married couple
4. Wedding and engagement rings up to a value of $1,000 for a single person and $2,000 for a married couple
5. Watches up to a value of $100 for a single person and $200 for a married couple
6. Food and fuel for six months
7. Horses, milk cows, and poultry or pets up to a value $500 for a single person and $1000 for a married person
8. Musical instruments up to a value of $250 for a single person and $500 for a married couple
9. Motor vehicles up to a value of $5,000 for a single person and up to $10,000 for a married couple (this exemption is doubled for a disabled person)
10. Bank accounts up to $150 for a single person and up to $300 for a married couple
11. Renters’ housing deposits up to a value of $1,000 for a single person or $2,000 for a married person or an amount equal to 1.5 the debtor’s rent, whichever amount is less

The following items of personal property are exempt up to a value $500 for a single person and $1,000 for a married couple:

1. Bible
2. Bicycle
3. Sewing machine
4. Typewriter
5. Burial plot
6. Rifle/Pistol/shotgun

The following household goods are exempt for a total of $4,000 for a single person and $8,000 for a married person:

1. 2 beds
2. 2 sets of bedding
3. 1 dresser
4. 1 bedroom table
5. 1 bedroom lamp
6. 1 kitchen table
7. 1 dining table with 4 chairs plus 1 per person living in the household
8. Living room carpet or rug
9. 1 couch
10. 1 living room chair per person
11. 3 lamps
12. 3 coffee or end tables
13. Pictures, paintings, personal drawings, family portraits (unlimited)
14. 1 refrigerator
15. 1 stove
16. 1 washer
17. 1 dryer
18. 1 vacuum cleaner
19. 1 TV
20. 1 radio
21. 1 alarm clock

Insurance

The following insurance policies are exempt when filing bankruptcy in Arizona:

1. Benefits from a fraternal benefit society
2. Insurance policy, annuity contract, cash value and proceeds are entirely exempt when the policy has been under the ownership of the debtor for more than two years and the beneficiary is a dependent member of the debtor’s family
3. Group life insurance policy and proceeds
4. Disability, health or accident benefits
5. Insurance proceed are exempt up to a value of $20,000 when the beneficiary is the debtor's child or spouse

Pension

Even though generally federal exemptions do not apply, federal pension exemptions apply in Arizona.

The following pension types are exempt when filing for bankruptcy:

1. ERISA-qualified pensions – all deposits made 120 days or more before filing bankruptcy
2. IRAs and Roth IRAs

The following individuals’ pensions are exempt when filing for bankruptcy:

1. Police officers
2. Firefighters
3. Board of regents, faculty or administrative officers
4. State employees
5. Rangers
6. District employees

Public Benefits

The following public benefits are entirely exempt when filing bankruptcy in Arizona:

1. Welfare
2. Workers Compensation
3. Unemployment compensation

Miscellaneous

The earnings of a minor child are exempt, unless the debt was incurred for the benefit of the child. Also child support and alimony are exempt to the extent that they are needed for support.

Tools of the trade

Teachers can exempt all books and teaching aides used in their profession.

Officers can exempt arms, uniforms, and accoutrements.

Other professionals or tradesmen can exempt necessary tools, instruments and books for up to a value of $2500 for a single person and $5000 for a married couple.

Wages

Earned, but unpaid wages are exempt at either 75% or 30 times the federal minimum wage, whichever is less. If there is a support order, up to 50% of the wages for the support order are exempt. A bankruptcy judge has the discretion to allow a higher percentage for low income debtors.

Wildcard: No

Federal Bankruptcy Exemptions: No

Arizona Bankruptcy Court:

The United States Bankruptcy court in Arizona has jurisdiction over the entire state.