Arizona Exemptions in Bankruptcy
What Property Exemptions in Arizona Bankruptcy?
When contemplating filing for bankruptcy in Phoenix or Arizona, one of the main concerns people face is the fear of losing property and belongings. It simply isn’t true that you are going to lose everything and be left on the street with nothing. This is a common myth about filing for bankruptcy protection.
The U.S. Bankruptcy Code was not written so that people who find themselves in financial difficulty are left with nowhere to turn after bankruptcy. In fact, the intention of bankruptcy is to give debtors a fresh start, which includes being able to keep certain essential property so that you can stay on your feet.
Debts and Assets
When filing bankruptcy in Arizona it requires you to list not only all of your debts but all of your assets. The most popular chapter of bankruptcy that is filed is a Chapter 7 Bankruptcy or a “Liquidating Bankruptcy”. In a chapter 7 bankruptcy; if you have non-exempt property there is a real possibility that it could be seized and sold at auction with the money going to your creditors. This does not apply to exempted property in an Arizona Chapter 7 bankruptcy filing.
However, in Arizona there are laws known as exemptions that protect your property. Most people have heard of the homestead exemption that protects your home, but most are unaware that there are numerous other exemptions in Arizona that protect everything from your car to your bible to your shotgun.
Exempt and Nonexempt Property
Property that you are paying back is not taken at all in a Chapter 13 bankruptcy filing as you are paying back your debt over time. In an Arizona Chapter 7 bankruptcy filing a person’s nonexempt property is sold and the funds are distributed to your creditors to satisfy your debt. However, you can keep your exempt property in a Chapter 7 bankruptcy filing.
To get a better understanding of filing for bankruptcy protection, the differences between Chapter 7 and Chapter 13 bankruptcy, and what things might be exempted while filing for bankruptcy, contact Arizona bankruptcy lawyer Ryan Dorn for a free consultation. Call (480) 263-1699 and get yourself on the road to a “Fresh Start” right away.
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Lastly, please consult a bankruptcy attorney in Phoenix for advice about your individual situation. This site and its information is not legal advice, nor is it intended to be. Please contact us via email, phone calls, or letters and we will gladly speak with you. In doing so, this does not create an attorney-client relationship. Until we have established an attorney-client relationship, please do not send any confidential information to us. We look forward to assisting you.