What Assets are Exempt in an Arizona Chapter 7 Bankruptcy?
Attorneys for Chapter 7 in Arizona can review your financial situation in detail and help you determine which assets are exempt (not subject to liquidation).
Chapter 7 involves the liquidation and sale of certain assets to pay creditors. In some states, you can choose between using federal exemptions or state exemptions. Arizona has its own exemption law, and residents filing for Chapter 7 must use the state’s list of exemptions. To give you an idea, here are some exemptions you can claim in Arizona (not a complete list). Amounts are in terms of fair market values:
- Homestead. You can claim your house, mobile home and the land where it is located for an amount up to $150,000.
- Personal property. You can claim up to $4,000 in household furniture, furnishings and appliances
- Wearing apparel. You can claim up to $500 in clothing.
- Musical instruments. You can claim up to $250 in musical instruments.
- Domestic pets, horses, milk cows and poultry. You can claim up to $500.
- Engagement and wedding rings. You can claim up to $1,000.
- Library. You can claim up to $250 in books, manuals and published materials.
- One car. You can claim up to $5,000 and, if physically disabled, up to $10,000.
- Life insurance. You can claim up to $20,000 in life insurance proceeds, if payable, to a surviving spouse or child for a deceased spouse, parent or legal guardian.
Phoenix bankruptcy lawyers can help you calculate the fair market value of your assets. Generally, in Chapter 7 bankruptcy cases, people can keep most of their property.
By working with the Law Office of Paul J. Dombeck, you can decide whether Chapter 7 is the right financial solution for your situation.