It is common for people to believe that if they file a bankruptcy case that they must give up their property. People are surprised to learn that in most cases they will be able to keep most if not all of their property during their bankruptcy case. Arizona has numerous exemption laws that protect both real estate and personal property, even during a bankruptcy case.
For example, Arizona’s homestead exemption protects up to $150,000 in equity in a personal residence. See A.R.S. § 33-1101(A). Likewise, a car, household goods, wedding rings, and retirement accounts are all generally protected during a bankruptcy case. Further, if there is property that would not be protected by one of Arizona’s exemption statutes, the filing of a Chapter 13 bankruptcy typically results in the keeping of all property while paying back a portion of your debts over a three to five year period.
If you are contemplating filing for bankruptcy, it is best to seek the advice of an attorney early on in the process so that you can utilize the full exemptions provided for by Arizona law.