Know What You Can Keep When You File For Bankruptcy In Arizona

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This article discusses the Arizona bankruptcy exemption laws and what is protected from liquidation by law.
This is very important information to know, make sure your bankruptcy lawyer is up to date on the bankruptcy code revisions. Often when people are faced with the prospect of having to file for bankruptcy, they are worried they will be stripped of their house and all earthly possessions, that it will be sold to the highest bidder and paid off to their creditors.
Thankfully, this is not the case and you do not have to start a new life after bankruptcy with absolutely nothing to your name. This is due to state bankruptcy exemption laws.
This means that there are certain properties that are exempt from creditors. Exemption laws vary by state, and some are more generous than others.
Arizona has considerably generous exemption laws, especially since the revisions made as of 2004. So what properties are exempt in Phoenix AZ bankruptcy ? There are many items listed in the code, ranging from funeral deposits to type writers.
Here we will discuss what I consider to be the most important necessities. Homestead- One homestead may be claimed as exempt and can be valued at up to 150,000 dollars.
The homestead exemption is automatic and no written claim is required. Only applicable to primary residence.
Before the revisions of 2004, the value of the house could only be up to 100,000 dollars. Vehicles- A single person is allowed to keep one vehicle with value up to 5,000 dollars, or 10,000 if debtor is maimed or crippled.
A married couple is allowed to keep one vehicle each of value up to 5,000 dollars, or one vehicle for the two with a value of 10,000 dollars. Before the revisions of 2004, the limit was a value of 1,500 dollars, so the revision greatly increased the maximum value for a vehicle exemption.
  Household goods- These include beds, tables, couches, TV etc. of up to 4,000 dollars value for a single person, and 8,000 dollars for a married couple.
Wedding rings- Wedding rings are exempt up to 1,000 dollars each. Though this may sound low, this is an appraisal value.
For an idea how much your ring would be worth, take it down to a pawn shop to see how much you could get. You may be slightly disappointed, but at the same time you will be glad you get to keep it! Cash- On the day that you file for bankruptcy, you can have no more than 150 dollars in the bank for a single person, 300 for a married couple.
Any more than this will be seized and given to creditors.  Source: Free Articles from ArticlesFactory.com Make sure that you file for bankruptcy with the aid of a Arizona bankruptcy attorneyso that you know what is exempt, and know how to properly file for these exemptions so that you are not taken advantage of by the trustee. .