Is there a homestead exemption in Arizona?
Yes. The homestead exemption in Arizona is $150,000. This exemption is the same for single and married filers. If your home is at or about the exemption amount, you should discuss your options with a bankruptcy attorney. You can still file a Chapter 13 bankruptcy if your home is too valuable. This allows you to reorganize your debts and pay them over 3-5 years. See our other articles for more information on Chapter 13 bankruptcy.
What is a vehicle exemption? How does that apply to Arizona bankruptcy exemptions?
A vehicle exemption is the amount of equity you can have in your car. In Arizona, a single filer can have up to $6,000 equity in one vehicle. Married filers may have two vehicles with up to $6,000 equity each, or one vehicle with up to $12,000 equity. The exemption is higher for filers with disabilities that require wheelchair-accessible vehicles.
What are the bankruptcy income exemptions?
To qualify for a Chapter 7 bankruptcy, you must either make below your state’s median income level for your family size, or pass a means test. Your family size will include spouses and minor children, but not unwed partners and adult children. In Arizona, the median income level for a single filer with no dependents is $51,358. As you add a family member, it increases to $64,543, $70,428, and $85,403. If you make more than the median income level for your family size, you will have to prove through the means test that you have no disposable income left at the end of the month to pay your debts.