Bankruptcy Exemptions
Bankruptcy Exemptions Near Tuscon
Arizona Bankruptcy Exemptions
When you decide to file for bankruptcy in Tuscon or the Oro Valley, it’s important to understand that there are certain exemptions in Arizona. They can play a crucial role in any bankruptcy proceeding. They can be used to determine what property you may be able to keep and how much of your debt will have to be paid back. There are various exemptions when it comes to Chapter 7 bankruptcy that can impact your home, motor vehicle, and personal property, as well as exemptions in Chapter 13 bankruptcy that you should know about.
When filing for Chapter 7 bankruptcy, your assets can be sold at auction to pay back your debts because Chapter 7 bankruptcy is a liquidation bankruptcy. But, if you can exempt certain property, you may be able to keep it. Under Arizona law, there are certain exemptions that you can use to protect your property during your bankruptcy. It’s also important to note that married couples may double certain (but not all) exemptions. If you have not lived in Arizona long enough the available exemptions might be based on the laws of the States where you lived prior to moving to Arizona.
The state of Arizona allows debtors to exempt up to $150,000 of their home or other property covered by the homestead exemption. This exemption cannot be doubled by married couples. Ariz. Rev. Stat. Ann. §§ 33–1101, 33–1103 and 33–1104.
In Arizona, debtors can exempt up to $6,000 of one or more motor vehicles. Married couples, as well as elderly or disabled individuals, can double this exemption. Ariz. Rev. Stat. Ann. § 33–1125(8).
When it comes to personal property, there are several exemptions available. Debtors can exempt up to $6,000 in household furniture and appliances, $500 in clothing, $800 in animals, $2,000 in engagement and wedding rings, and certain prescription health aids, as well as other categories. Ariz. Rev. Stat. Ann. §§ 33–1123, 33–1125 and 33–1127.
If you are filing for Chapter 13 bankruptcy, the trustee cannot sell your nonexempt assets. But, your disposable income and nonexempt assets will determine the amount you must pay your unsecured creditors. For example, if your disposable income allows you $700 a month over a five-year period to pay back your debts, and $400 of that money goes toward your secured debts, then you have $300 leftover that will go toward your unsecured debts. The total value of your nonexempt assets cannot exceed $18,000 (the total cost of $300 a month over five years). If it does, you won’t have a workable repayment plan.
As you can see, the bankruptcy process can be complicated when it comes to filing and exemptions. Having an experienced bankruptcy lawyer on your side to explain it all will help you along the process. Contact the Tucson Arizona Bankruptcy Attorney Nicholas Fuerst in the Tuscon area.
