EXEMPT PROPERTY
In Arizona, a debtor against whom a judgment has been rendered is able to keep certain personal and real property, preventing the Sheriff from seizing and selling the property to pay off the judgment. Likewise, an Arizona resident is allowed to keep certain personal and real property if the person files a petition in bankruptcy. The property which a person is allowed to keep is known as “exempt” property.
Some exemptions are automatic, and some must be properly asserted in order to be recognized. Years ago, a “homestead declaration” had to be properly prepared and recorded in order to be valid. Now, the homestead exemption is automatic, but only under certain circumstances. You may find a chart of exemptions here. Also, here is another chart showing Arizona exemptions:
| ITEM |
EXEMPTION |
Reference (A.R.S.) |
| HOMESTEAD | Real property; an apartment or mobile home you occupy, up to 250,000 in value; sale proceeds exempt as specified in the statute (which was revised effective 1/1/2022) | 33-1101 |
| Arises by operation of law, but if multiple properties owned, may be required to designate | 33-1102 | |
| PERSONAL PROPERTY husband and wife may double all personal property exemptions | 2 beds and living room chair per person; 1 dresser, table, lamp, bedding per bed; kitchen table; dining room table and 4 chairs (1 more per person); living room carpet or rug; couch; 3 lamps; 3 coffee or end tables; pictures, paintings, drawings created by the debtor; family portraits; refrigerator; stove; TV, radio or stereo; alarm clock; washer; dryer; vacuum cleaner to $4,000 total | 33-1123 |
| Bank deposit up to $150 in one account | 33-1126(A)(8) | |
| Bible; bicycle; sewing machine; typewriter; burial plot; rifle, pistol or shotgun to $500 total | 33-1125 | |
| Books to up to $250; clothing up to $500; wedding and engagement rings up to $1,000; watch up to $100; pets, horses, milk cows and poultry up to $500; musical instrument up to $250; prostheses, including wheelchair | 33-1125 | |
| Food and fuel to last 6 months | 33-1124 | |
| Motor vehicle up to $1,500 ($4,000, if disabled) | 33-1125(8) | |
| Prepaid rent or security deposit to up $1,000 or 1-1/2 times your rent, whichever is less, in lieu of homestead | 33-1126(D) | |
| Proceeds for sold or damaged exempt property | 33-1126 (A)(5), (7) | |
| INSURANCE | Fraternal benefit society benefits | 20-881 |
| Group life insurance policy or proceeds | 20-1132 | |
| Health, accident or disability benefits | 33-1126(A)(3) | |
| Life insurance cash value up to $1,000 per dependent ($25,000 total) (husband and wife may double) | 33-1126 \(A)(3) | |
| Life insurance cash value up to $2,000 per dependent ($10,000 total) | 20-1131(D) | |
| Life insurance proceeds up to $20,000 if the beneficiary is spouse or child (husband and wife may double) | 33-1126(A)(1) | |
| MISC. | Minor child’s earnings, unless the debt is for child | 33-1126(A)(2) |
| Property of a business partnership | 29-225 | |
| PENSIONS | Board of regents members | 15-1628(I) |
| ERISA-qualified benefits deposited more than 120 days before filing bankruptcy | 33-1126(B) | |
| IRAs | In re Herrscher, 121 B.R. 29 (D. Ariz. 1990) | |
| Firefighters | 9-968 | |
| Police officers | 9-931 | |
| Public safety personnel | 38-850(C) | |
| Rangers | 41-955 | |
| State employees | 38-762 | |
| PUBLIC BENEFITS | Unemployment compensation | 23-783 |
| Welfare benefits | 46-208 | |
| Workers’ compensation | 23-1068 | |
| TOOLS OF TRADE | Arms, uniforms, and accouterments you are required to keep | 33-1130(3) |
| Farm machinery, utensils, seed, instruments of husbandry, feed, grain, and animals up to $2,500 total (husband and wife may double) | 33-1130(2) | |
| Teaching aids of teacher | 33-1127 | |
| Tools, equipment, instruments, and books (except vehicle driven to work) up to $2,500 | 33-1130(1) | |
| WAGES | Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors |
