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Property Exempt in Arizona

The use of Federal bankruptcy exemptions is prohibited in Arizona. ARS 33-1133
Federal non-bankruptcy exemptions are available.

Type of Property & Description Amount Exempt Statute Creating Exemption
Homestead.  Equity in a home, townhouse, condominium, mobile home, or mobile home and lot in which the debtor resides.

A married couple may have only one homestead, and if the couple is then divorced the total exemption allowed for that residence to either or both persons is $150,000.  The homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead.  ARS 33-1101  [Prior to August 25, 2004 the homestead exemption was $100,000.]

The homestead exemption is automatic and no written claim is required, but the exemption must be claimed in bankruptcy schedules.  ARS 33-1102

The homestead is abandoned by written declaration, transfer of the property, or moving from the homestead for more than two years.  ARS 33-1104

$150,000 ARS 33-1101
Amended effective 8-25-04
Availability of exemptions to married persons. In the case of married persons, each spouse is entitled to the personal property exemptions listed below [ARS 33-1120 to 1149], which may be combined with the other spouse's exemption in the same property or taken in different exempt property.   ARS 33-1121.01
Prepaid rent & security deposit.  If a homestead exemption is not claimed, prepaid rent, including security deposits. Lesser of $1,000 or one and one-half month's rent ARS 33-1126.C
Household goods. The following household items:
  • One kitchen and one dining room table with four chairs each, plus one additional chair for each dependent of the debtor who resides in the household if the debtor and dependents exceed four in number.
  • One living room couch.
  • One living room chair, plus one additional chair for each dependent of the debtor who resides in the household.
  • Three living room coffee or end tables.
  • Three living room lamps.
  • One living room carpet or rug.
  • Two beds, plus one additional bed for each dependent of the debtor who resides in the household.
  • One bed-table, dresser and lamp for each exempt bed.
  • Bedding for each exempt bed.
  • Pictures, oil paintings and drawings, drawn or painted by debtor and family portraits in their necessary frames.
  • One television set or radio or stereo.
  • One radio alarm clock.
  • One stove.
  • One refrigerator.
  • One washing machine.
  • One clothes dryer.
  • One vacuum cleaner.
$4,000 ARS 33-1123
Food, fuel & provisions.  All food, fuel and provisions actually provided for the debtor's individual or family use for six months. 100% ARS 33-1124
Wearing apparel. $500 ARS 33-1125.1
Music instruments.  All musical instruments provided for the debtor's individual or family use. $250 ARS 33-1125.2
Pets & animals.  Domestic pets, horses, milk cows and poultry. $500 ARS 33-1125.3
Rings.  All engagement and wedding rings. $1,000 ARS 33-1125.4
Library.  The library of a debtor, including books, manuals, published materials and personal documents. $250 ARS 33-1125.5
Watch.  One watch. $100 ARS 33-1125.6
Other personal property.  One typewriter, one bicycle, one sewing machine, a family bible, a lot in any burial ground, one shotgun or one rifle or one pistol. $500 ARS 33-1125.7
Motor vehicle.  One motor vehicle.
[Prior to August 8, 2001, the motor vehicle exemption was $1,500; $4,000 if debtor was maimed or crippled.]
$5,000; ($10,000 if debtor is physically disabled) ARS 33-1125.8
Amended effective 8-9-01
Prostheses.  Professionally prescribed prostheses for the debtor or a dependent of the debtor, including a wheelchair. 100% ARS 33-1125.9
Life insurance proceeds.  Money received by or payable to a surviving spouse or child upon the life of a deceased spouse, parent or legal guardian.  Exclusion applies. $20,000 ARS 33-1126.A.1
Earnings of a minor child. The earnings of the minor child of a debtor or the proceeds thereof by reason of any liability of such debtor not contracted for the special benefit of such minor child. Exclusion applies. 100% ARS 33-1126.A.2
Child support & spousal maintenance.  All monies received by or payable to a person entitled to receive child support or spousal maintenance pursuant to a court order.  Exclusion applies. 100% ARS 33-1126.A.3
Health, accident, or disability benefits.  All money, proceeds or benefits of any kind to be paid in a lump sum or to be rendered on a periodic or installment basis to the insured or any beneficiary under any policy of health, accident or disability insurance or any similar plan or program of benefits in use by any employer, except for premiums payable on such policy or debt of the insured secured by a pledge, and except for collection of any debt or obligation for which the insured or beneficiary has been paid under the plan or policy and except for payment of amounts ordered for support of a person from proceeds and benefits furnished in lieu of earnings which would have been subject to such order and subject to any exemption applicable to earnings so replaced. Exclusion applies. 100% ARS 33-1126.A.4
Damage to exempt property.  Money from any claim for the destruction of, or damage to, exempt property, including fire or other insurance.  Exclusion applies. 100% ARS 33-1126.A.5
Life insurance policies.  The cash surrender value of life insurance policies where for a continuous unexpired period of two years such policies have been owned by a debtor and have named as beneficiary the debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, in the proportion that the policy names any such beneficiary, except that, subject to the statute of limitations, the amount of any premium which is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1, with interest thereon, shall not be exempt. The exemption provided by this paragraph does not apply to a claim for the payment of a debt of the insured or beneficiary that is secured by a pledge or assignment of the cash value of the insurance policy or the proceeds of the policy. For the purposes of this paragraph "dependent" means a family member who is dependent on the insured debtor for not less than half support.  Exclusion applies. 100% ARS 33-1126.A.6
ARS 20-1131(D)
Annuity Contract.  An annuity contract where for a continuous unexpired period of two years such contract has been owned by a debtor and has named as beneficiary the debtor, debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, except that, subjecThe cash surrender value of life insurance policies where for a continuous unexpired period of two years such policies have been owned by a debtor and have named as beneficiary the debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, in the proportion that the policy names any such beneficiary, except that, subject to the statute of limitations, the amount of any premium which is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1, with interest thereon, shall not be exempt. The exemption provided by this paragraph does not apply to a claim for the payment of a debt of the insured or beneficiary that is secured by a pledge or assignment of the cash value of the insurance policy or the proceeds of the policy. For the purposes of this paragraph "dependent" means a family member who is dependent on the insured debtor for not less than half support.t to the statute of limitations, the amount of any premium, payment or deposit with respect to such contract is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1 shall not be exempt. The exemption provided by this paragraph does not apply to a claim for a payment of a debt of the annuitant or beneficiary that is secured by a pledge or assignment of the contract or its proceeds. For the purposes of this paragraph, "dependent" means a family member who is dependent on the debtor for not less than half support.  Exclusion applies. 100% ARS 33-1126.A.7
Wrongful taking of exempt property.  Any claim for damages recoverable by any person by reason of any levy upon or sale under execution of his exempt personal property or by reason of the wrongful taking or detention of such property by any person, and the judgment recovered for such damages.  Exclusion applies. 100% ARS 33-1126.A.8
Bank account.  Money held in a single account in any one financial institution as defined by ARS 6-101 [banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the state banking department]. The exemption does not apply against normal service charges assessed against the account by the financial institution at which the account is carried. Exclusion applies. $150 ARS 33-1126.A.9
Exclusion.  Exemptions of ARS 33-1126.A do not apply to annuities, or to cash surrender values increased by premium payments within two years in excess of the average annual premium paid during the previous three years.
Exemptions of ARS 33-1126 do not apply to orders which are the result of a judgment for arrearages of child support or for a child support debt.
  ARS 33-1126.B
ARS 20-11
26.E
IRAs.  Money in qualifying Individual Retirement Accounts, except amounts contributed within one hundred twenty days before bankruptcy or amounts to an alternate payee under a qualified domestic relations order. 100% ARS 33-1126.C
Tools of trade.  The tools, equipment, instrument and books of a debtor or the spouse of a debtor primarily used in, and necessary to carry on, the commercial activity, trade, business or profession of the debtor or the debtor's spouse. This does not include a motor vehicle primarily used by a debtor for personal, family or household purposes such as transportation to and from the debtor's place of employment. $2,500 ARS 33-1130.1
Farming implements.  Farm machinery, utensils, implements of husbandry, feed, seed, grain and animals belonging to a debtor whose primary income is derived from farming. $2,500 ARS 33-1130.2
Arms, uniforms and accoutrements.  All arms, uniforms and accoutrements required by law to be kept by a debtor. 100% ARS 33-1130.3
Disposable earnings.  That remaining portion of a debtor's wages, salary or compensation for his personal services, including bonuses and commissions, or otherwise, and includes payments pursuant to a pension or retirement program or deferred compensation plan, after deducting from such earnings those amounts required by law to be withheld.
Exemption does not apply a Bankruptcy Court order under Chapter 13, or to any debt due for any state or federal tax.
Greater of 75% or 30 times Federal hourly minimum wage; 50% for support orders ARS 33-1131
Fraternal Benefit Society benefits. 100% ARS 20-877
Unemployment compensation benefits. Exemption does not apply to actions to recover support under the child support enforcement act, or to recover over issuances of food stamp coupons 100% ARS 23-783
Workmen's compensation benefits. 100% ARS 23-1068
Welfare assistance. 100% ARS 46-208
Firemen's relief and pension benefits. Exemption does not apply to child support. 100% ARS 9-968
Police pension benefits. Exemption does not apply to child support. 100% ARS 9-931
Arizona Rangers' pensions. 100% ARS 41-955
Arizona State Retirement Benefits.  Benefits and annuities, member and employer contributions and the securities in Arizona State Retirement System [ASRS] accounts. 100% ARS 38-792
Long-Term Disability [LTD] Program benefits.  Employer and member contributions and the securities in the LTD trust fund established by section 38-797.02 are not subject to execution or attachment and are nonassignable except as specifically provided in this article. 100% ARS 38-797.11
Corrections Officer Retirement Plan benefits. The right of an individual to a pension, to a refund of accumulated member contributions, to the pension itself or to any other right accrued or accruing to any individual, and the monies and assets of the retirement plan, are not subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or other process of law except a qualified domestic relations order and are unassignable except as may be otherwise specifically provided.  Exemption does not apply to a qualified domestic relations order or a judgment for child support. 100% ARS 38-897
Public Safety Personnel Retirement System. Benefits, employee contributions or employer contributions, including interest, earnings and all other credits, payable under this system shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by the person entitled to the benefit, contribution, earning or credit, under the terms of the system, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any such right hereunder shall be void. 100% ARS 38-850.C
Specific partnership property. Repealed effective 1/1/2000. N/A ARS 29-225

Exemptions listed are based upon information compiled April 2004 and may not be exhaustive.  Before relying upon any exemption, its current availability should be verified by checking with the applicable Arizona Revised Statute (ARS) which establish the exemption.  The code may be reviewed and searched at the web site of Arizona Legislative Computer Service of the Arizona State Legislature, ALIS Online.

This page was last revised: 03/20/08


 

 

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