When you file bankruptcy in Arizona you can keep "exempt" property. Exempt property is protected from being taken by the bankruptcy trustee to pay off your creditors. The exemptions that you are entitled to depend where you have lived in the past. This can get very complex and when you are dealing with assets that you don't want to lose in bankruptcy court it is vital that you discuss what exemption scheme you qualify for. Mortensen Law Offices takes pride in exemption planning prior to filing bankruptcy. We will advise clients on the timing of filing a bankruptcy in Arizona to maximize the exemption and the amount of property they can protect after they file bankruptcy in Arizona.
Some examples of exemption planning include the following. Lets say you recently moved to Arizona and have purchased or been given an asset that is not currently protected. Your attorney should look at all aspects of your case to help you determine if it may be worth delaying the bankruptcy filing in Arizona so that you can qualify for an exemption that you other wise would not qualify for. I had a client where we delayed the filing so that we could protect the equity position that he held in his Arizona residence. This amounted to him protecting his home in bankruptcy. I have never met a client yet that wanted to lose his home in bankruptcy (unless they were surrendering because they could not afford it).
When you are exemption planning it will be important to look at all aspects of your bankruptcy case. You need to look at means testing issues that may that may arise when you file; you also may be in the process of current legal action that can expose you to unwanted consequences. Be careful! While you are trying to resolve one issue it is very easy to create other unintended problems. Again, visit with Mortensen Law Offices and we will assist you in planning when to file your bankruptcy.
Some examples of exemptions that exist in Arizona (but only if you qualify) are the following:
Your home - $400,000 if you qualify
Your car - $15,000 if you qualify
Personal property, such as clothing and household goods, up to a certain value
Tools that you use in your job - $5,000
Retirement accounts, such as 401(k)s or IRAs
Public benefits, such as Social Security or unemployment compensation
This list goes on so discuss all of your property with Mortensen Law offices when you get a free consultation for bankruptcy in Arizona.
It is important to note that exemptions can vary by state and change over time. Never rely on any internet information and always consult with a qualified attorney prior to filing a bankruptcy in Arizona.