Arizona Bankruptcy Laws

Approximate annual median: 1 person ~$72,039; 2 persons ~$85,400; 3 persons ~$102,900; 4 persons ~$113,200. Updated semi-annually by the U.S. Trustee Program.

Protects up to $400,000 in equity in the debtor's primary residence (increased from $250,000 by HB 2617, effective 2023). Adjusted annually by CPI starting January 1, 2024. Covers real property, condominiums, cooperatives, mobile/manufactured homes.

Protects up to $15,000 in motor vehicle equity ($25,000 if debtor or dependent has a physical disability). Subject to annual CPI adjustments starting 2024.

Household goods/furnishings/electronics: $15,000. Wearing apparel: $500. Musical instruments: $400. Engagement/wedding rings: $2,000. Books/personal documents: $250. No wildcard exemption.

Tools and equipment used in commercial activity, trade, business, or profession are fully exempt with no dollar cap — a notably generous exemption.

Life insurance cash value/proceeds, health/disability/accident insurance proceeds, and workers' compensation benefits are exempt.