EXEMPT PROPERTY
Read the
WARNING! first.
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.
Here is a chart showing the
Arizona exemptions:
|
Type of Property |
|
Arizona Revised
Statutes Section |
|
Value |
|
|
|
|
|
|
|
Homestead, consisting of
debtor's equity in real property used as residence, and attached land |
|
33-1101 |
|
$150,000 or less |
|
|
|
|
|
|
|
Certain household
furniture, furnishings and
appliances (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, living room couch, 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, living room carpet or rug, Two beds, plus one
additional bed for each dependent of the debtor who resides in the
household, bed-table, dresser and lamp for each bed allowed, Bedding
for each bed allowed by this section, Pictures, oil paintings and
drawings, drawn or painted by debtor and family portraits in their
necessary frames, television set or radio or stereo, radio alarm
clock, stove, refrigerator, washing machine, clothes dryer, vacuum
cleaner) |
|
33-1123 |
|
$4,000 or less |
|
|
|
|
|
|
|
Food, fuel and provisions
for 6 months |
|
33-1124 |
|
100% |
|
|
|
|
|
|
|
Wearing apparel for each
debtor |
|
33-1125(1) |
|
$500.00 or less |
|
|
|
|
|
|
|
Musical instruments of
debtor & family |
|
33-1125(2) |
|
$250.00 or less |
|
|
|
|
|
|
|
Domestic pets, horses,
milk cows and poultry |
|
33-1125(3) |
|
$500.00 or less |
|
|
|
|
|
|
|
Engagement/wedding rings
for each debtor |
|
33-1125(4) |
|
$1,000.00 or less |
|
|
|
|
|
|
|
Library |
|
33-1125(5) |
|
$250.00 or less |
|
|
|
|
|
|
|
One watch for each debtor |
|
33-1125(6) |
|
$100.00 or less |
|
|
|
|
|
|
|
Typewriter, bicycle,
sewing machine, family bible, lot in burial ground, rifle or shotgun
or pistol |
|
33-1125(7) |
|
$500.00 or less |
|
|
|
|
|
|
|
Motor vehicle for each
debtor |
|
33-1125(8) |
|
$5,000
or $10,000 if debtor is physically
disabled |
|
|
|
|
|
|
|
Bank account for each
debtor |
|
33-1126(7) |
|
$150.00 or less |
|
|
|
|
|
|
|
Necessary tools,
equipment, instruments and books used in business or profession by
debtor/spouse |
|
33-1130(1) |
|
$2,500.00 or less |
|
|
|
|
|
|
|
Money received by or
payable to surviving spouse or minor child upon life of deceased
spouse or parent |
|
33-1126(1) |
|
$20,000 or less |
| |
|
|
|
|
|
Earnings of minor child |
|
33-1126(2) |
|
All |
|
|
|
|
|
|
|
100% Health, accident or
disability insurance benefits |
|
33-1126(3) |
|
100% |
|
|
|
|
|
|
|
Insurance proceeds for
damage or destruction of exempt property |
|
33-1126(4) |
|
100% |
|
|
|
|
|
|
|
Life insurance cash value |
|
33-1126(5) |
|
100% less any
premium paid in fraud of creditors |
|
|
|
|
|
|
|
Damages for wrongful
levy/execution |
|
33-1126(6) |
|
100% |
|
|
|
|
|
|
|
Professionally prescribed
health aids, including wheelchair |
|
33-1125(9) |
|
100% |
|
|
|
|
|
|
|
Disposable earnings 75% or
30 times the federal minimum hourly wage per week, whichever is
greater |
|
33-1131 |
|
|
|
|
|
|
|
|
|
Prepaid rent and security
deposits maximum 1-1/2 months rent |
|
33-1126(8) |
|
|
|
|
|
|
|
|
|
All money or other assets
payable to a participant or beneficiary from, or any interest of any
participant or beneficiary in, a retirement plan qualified under
Internal Revenue Code 401(a), 403(a), 403(b), 408 or 409 |
|
33-1126(B) |
|
|
| |
|
|
|
|
|
Certain life insurance proceeds/policies |
|
20-1131-1132 |
|
100%, less any premium paid in fraud
of creditors |
|
|
|
|
|
|
|
Workmen's compensation
benefits |
|
23-1068 |
|
100% |
|
|
|
|
|
|
|
Arizona State Lottery
proceeds |
|
5-513 |
|
100% |
|
|
|
|
|
|
|
Specific partnership
property |
|
29-225 |
|
100% of Debtor's interest |
|
|
|
|
|
|
|
Feed, grain, seed, farming
machinery and animals |
|
33-1130(2) |
|
$1,500 |
|
|
|
|
|
|
|
Unemployment compensation |
|
23-783 |
|
100% |
|
|
|
|
|
|
|
Welfare Benefits |
|
46-208 |
|
100% |
|
|
|
|
|
|
|
Fireman's Relief/Pension |
|
9-968 |
|
100% |
|
|
|
|
|
|
|
Police Pension Benefits |
|
9-931 |
|
100% |
|
|
|
|
|
|
|
Teachers Retirement
Benefits |
|
15-1440 |
|
100% |
|
|
|
|
|
|
|
State Employees Retirement
Benefits |
|
38-762 |
|
100% |
| |
|
|
|
|
For another chart of
Arizona exemptions, click
here.
If you need assistance with
Arizona exemption planning, contact us at
928/445-3230. |
