What are bankruptcy exemptions in Arizona?

Arizona dramatically expanded its homestead exemption in 2022 to protect against rising real estate values.

1. Opt-Out State — A.R.S. § 33-1133

Arizona opted out. Debtors must use Arizona exemptions.

2. Homestead — A.R.S. § 33-1101 (HB 2617, eff. Jan. 1, 2022)

$400,000 for any debtor (single or joint).

Adjusted for CPI beginning 2024.

Up from $150,000 — a major change reflecting Phoenix-area real estate appreciation.

3. Motor Vehicle — A.R.S. § 33-1125(8)

$15,000 equity in one motor vehicle.

$25,000 if the debtor or dependent is physically disabled.

4. Personal Property — A.R.S. § 33-1123, 33-1125, 33-1130

Household goods, furniture, appliances: $15,000 aggregate.

Bible, religious texts, school books: $250 (each category).

Wearing apparel: $500.

Wedding/engagement rings: $2,000.

Watches: $250.

Pets, horses, milk cows, poultry: $1,000 aggregate.

One typewriter, computer, bicycle, sewing machine, family portraits, musical instruments: $250 each.

Health aids — § 33-1125(9): prescribed health aids fully exempt.

Firearms: $2,000.

5. Tools of Trade — A.R.S. § 33-1130

$5,000.

6. Wages — A.R.S. § 33-1131

75% of disposable earnings OR 30x federal minimum wage exempt (matches CCPA).

7. Retirement Accounts — A.R.S. § 33-1126(B)

ERISA plans, IRAs, Roth IRAs: fully exempt.

Contributions within 120 days of filing: not exempt — important planning point.

8. Insurance — A.R.S. § 20-1131, § 33-1126

Life insurance proceeds: $20,000.

Cash surrender value of life insurance and annuities: exempt if the beneficiary is the debtor's spouse, child, parent, sibling, or other dependent.

9. Public Benefits — A.R.S. § 33-1126

Social Security, unemployment, workers' comp, veterans', public assistance — fully exempt.

10. Personal Injury / Wrongful Death — A.R.S. § 33-1126

Compensation for personal injury: $35,000 ($70,000 joint).

11. Earned Income Tax Credit, Child Tax Credit — A.R.S. § 33-1126(A)(11)

Fully exempt.

12. Domicile Requirement

730-day rule under 11 U.S.C. § 522(b)(3) applies.

13. Federal § 522(p) Cap

$214,000 federal cap on homestead acquired within 1,215 days still applies despite Arizona's $400,000 state exemption.

This is legal information, not legal advice.