Different Bankruptcy Exemption Laws in Arizona
While the bankruptcy code is federal law, there are a few legalities in each state which make the overall bankruptcy experience different throughout the U.S. In this article, we’ll focus on Arizona’s own unique bankruptcy laws.
Exemptions in One State May Not be Exempt in Another
One of the ways that bankruptcy law differs from state to state is the amount of exemptions available. For example, here in Arizona, federal exemptions are not allowed, making debtors rely upon state exemptions. That’s ok though, because Arizona exemption laws are generous. In fact, you can protect up to $150,000 of home equity through Arizona bankruptcy law and one car with $5,000 of equity ($10,000 of equity if the debtor is disabled). Other exemptions of note allowed in Arizona include:
- Clothing up to $500 in value
- Domestic pets milk cows, poultry and horses with a market value of up to $500
- Wedding and engagement rings with a value of up to $1,000
Making Sure Arizona Bankruptcy Law is Applicable in Your Case
To qualify for Arizona’s unique bankruptcy laws, you will need to have lived here in the Grand Canyon State for the last two years. If you’re a relative newcomer to Arizona, you’ll most likely have to use the rules of the state you moved from.
The Oswalt Law Group in Arizona Can Guide You Through the Process
As you can tell, the letter of the bankruptcy flaw is not a clear-cut as many people may have thought. Just like every other state, Arizona has its own set of rules to go by. If you’re considering bankruptcy, you need to make sure you’re doing things the proper way. In other words, you need an attorney skilled in bankruptcy law. We welcome your call to the Oswalt Law Group for a free consultation. Our number is (602) 225-2222.