Arizona Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Arizona — homestead, personal property, vehicle, wage, and retirement exemptions.
Arizona's exemption system
Arizona requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Arizona exemption amounts below control what you can protect.
Key Arizona exemptions
Homestead §33-1101; §33-1102
$400,000 in equity (statutory base; adjusted annually for cost of living beginning January 1, 2024 — use the current indexed amount). Automatic — no filing required. Applies to debtor's interest in property used as a residence. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §33-1123
$15,000 aggregate base (household furniture, furnishings, household goods including consumer electronics, and appliances) — adjusted annually for cost of living since January 1, 2024, so check the indexed amount for the filing year. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §33-1125
$15,000 in equity in one motor vehicle used primarily for personal, family or household purposes ($25,000 if the debtor or the debtor's dependent has a physical disability) — statutory base amounts adjusted annually for cost of living beginning January 1, 2024, so check the indexed amount for the filing year. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §33-1131
90% of disposable earnings exempt (garnishment limited to 10% of disposable earnings, or the amount exceeding 60× the applicable minimum wage, whichever is less). This applies to wages already earned but not yet paid at the time of filing.
Retirement accounts
ERISA-qualified plans, IRAs, 401(k), and state retirement funds are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §33-1130
$5,000 in tools, equipment, instruments, and books. This protects the equipment you need to earn a living.
Arizona exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Arizona limit | $400,000 in equity (statutory base; adjusted annually for cost of living beginning January 1, 2024 — use the current indexed amount) §33-1101; §33-1102 | $15,000 aggregate base (household furniture, furnishings, household goods including consumer electronics, and appliances) — adjusted annually for cost of living since January 1, 2024, so check the indexed amount for the filing year §33-1123 | Not available |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
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Related guides
- $400,000 in equity (statutory base; adjusted annually for cost of living beginning January 1, 2024 — use the current indexed amount)
- Automatic — no filing required. Applies to debtor's interest in property used as a residence.
- $15,000 aggregate base (household furniture, furnishings, household goods including consumer electronics, and appliances) — adjusted annually for cost of living since January 1, 2024, so check the indexed amount for the filing year
- 90% of disposable earnings exempt (garnishment limited to 10% of disposable earnings, or the amount exceeding 60× the applicable minimum wage, whichever is less)