Arizona Homestead Exemption in Bankruptcy
The Arizona homestead exemption can be found in Arizona Revised Statutes 33-1101. That statue states that a debtor may exempt "interest in real property upon which debtor’s house sits, condominium or cooperative, mobile home, or mobile home in which debtor resides plus the land upon which the mobile home is located in the amount of $150,000." It continues and states that a husband and wife may not double this exemption. In plain English, this means that you may have $150,000.00 in equity in a primary residence that creditors cannot touch.
It must be noted that this exemption applies to a primary residence only, and does not apply to investment properties. You cannot exempt a home you rent out. You cannot exempt a piece of bare land. The debtor must actually reside in the home, mobile home, or condo. In order to receive this exemption, you must qualify for the Arizona exemption. That means you must have lived in the state of Arizona for a certain amount of time before you can use Arizona exemptions. You cannot for example move here from another state one day, and file a bankruptcy case in Arizona the next and expect to receive Arizona bankruptcy exemptions.
It is very important to speak to an attorney before you file a bankruptcy case. Especially if you have equity in any real estate. Failure to understand exemptions can result in property loss. If you ave any questions, feel free to call our office, and an experienced bankruptcy attorney will speak to you 480-355-1377.
Other useful articles on the topic of homestead exemptions, can be found here: https://www.bankruptcyattorneytempeaz.com/blog/the-homestead-bankruptcy-exemption
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