If you're considering filing for bankruptcy in Arizona, the Arizona homestead exemption will help protect your home's equity. This article explains how much the Arizona homestead exemption will cover and how to apply it in your bankruptcy case.
Exemptions change periodically, and these figures could change before we update them again in June 2023. You can meet with a bankruptcy attorney for current amounts and learn how they apply to your situation.
Yes, you'll use Arizona's state exemptions and the federal nonbankruptcy exemptions. Although some states allow residents to use federal bankruptcy exemptions, this option isn't available in Arizona.
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Arizona Homestead Exemption |
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Homestead exemption amount |
$150,000 |
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Can spouses who file a joint bankruptcy double the exemption? |
No |
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Homestead exemption law |
33 A.R.S. § § 1101 - 1153 |
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Where to find other exemptions. |
Under the Arizona homestead exemption law, the following are exempt up to $150,000 in equity:
In each of the above instances, the dwelling (house, condominium, cooperative, or mobile home) must be your residence— that is, you must live in the dwelling.
The homestead exemption also applies to cash proceeds from the sale of a homestead property. These proceeds remain exempt for 18 months from the sale of the property or until the proceeds are used to purchase a new homestead, whichever time is shorter.
One exception to the Arizona homestead exemption is that it doesn't exempt property from liens for child or spousal support arrearages. In Arizona, if the court has reduced a child or spousal support arrearage to a judgment, then the homestead exemption will not apply to that judgment, and the homestead may be subject to a forced sale to satisfy that judgment.
You can file for bankruptcy in Arizona after living there for more than 180 days. However, you must live in Arizona for at least 730 days before filing. Otherwise, you'd use the previous state's exemptions.
If you lived in multiple states during the two years before filing for bankruptcy, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).)
Learn more about filing for bankruptcy after moving to a new state, the current amount of the federal cap, and other essential exceptions to homestead exemptions.
No, in Arizona, the homestead exemption is automatic. Per Arizona law, the homestead will apply to the property you maintain as a residence.
You'll find Arizona's homestead exemption in the Arizona Revised Statutes at Title 33, Chapter 8, sections 1101-1153 (33 A.R.S. § § 1101 et seq.). Check out Laws and Legal Research to learn how to find state statutes.
If you can't protect all of your home equity, you might not be able to keep your home. Typically, the Chapter 7 trustee appointed to your case would sell the house, return the exemption amount to you, pay off the mortgage, and pay creditors with the amount remaining after deducting the trustee's fee.
In Chapter 13, you'd need to pay creditors the value of the nonexempt equity through the Chapter 13 plan. You can learn about other requirements you'll need to meet in Your Home in Chapter 7 or Your Home in Chapter 13.
When completing your bankruptcy forms, you'll do the following:
Because your home is likely your most valuable asset, consider consulting with a bankruptcy lawyer to ensure you can protect it in bankruptcy.
Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated April 23, 2022