What Can I Keep If I File Chapter 7 Bankruptcy?
Bankruptcy laws in Arizona can be confusing, especially if you are just learning about Chapter 7 bankruptcy for the first time. Being overwhelmed is common, but it is important to have a good understanding of bankruptcy laws in Arizona, including bankruptcy exemptions, if you are considering filing.
When you think about filing for bankruptcy you may imagine having to start over completely, with nothing left, and nothing to your name. When filing for bankruptcy in Arizona, however, you should take a closer look at the laws that may apply to you.
Bankruptcy laws in Arizona make concessions for certain bankruptcy exemptions when one files under Chapter 7. This means that you may not lose everything when you file, as there are some things you could keep under the law.
In Arizona, federal bankruptcy exemptions, with few exceptions, do not apply. This means you must adhere to the rules set out under state law.
Some common bankruptcy exemptions in Arizona include alimony and child support, fraternal benefit society benefits, up to $150,000 of equity in a home or property allowed under the homestead exemption, insurance benefits including life insurance benefits, motor vehicles under certain circumstances, trade implements, and pension and retirement benefits.
Under Arizona bankruptcy law, you can exempt 75% of your wages owed to you as of the date of filing. Workers compensation and Social Security benefits are 100% exempt.
You may also be able to exempt items of personal property. Bankruptcy law in Arizona allows for exemptions for household goods which includes items like household furniture and appliances, clothing, musical instruments, animals, engagement and wedding rings, books, health aids, bicycles, computers, and other common items.
It is important to talk to a bankruptcy attorney when you are considering filing for Chapter 7 bankruptcy. An experienced lawyer is extremely helpful when you are coming up with a plan and determining what exemptions may apply to you. Without the assistance of a legal professional you may not know exactly what you can exempt, so you could lose property you might otherwise be able to keep.
Filing Chapter 7 bankruptcy does not mean you have to lose everything you own. Use Arizona bankruptcy law and bankruptcy exemptions to your best advantage, and get assistance and advice from a qualified, experienced lawyer.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.