January 28, 2012
/24-7PressRelease/ -- Filing for bankruptcy is often one of the best ways to obtain a fresh start when completely overwhelmed by debt. However, many people are hesitant to file for bankruptcy because they see the entire process as a daunting task. Moreover, many people considering bankruptcy are concerned, if not downright scared, that they will lose all of their possessions if they file. Fortunately though,
Arizona has many bankruptcy exemptions available to protect the personal property of debtors in the "Grand Canyon State" - most notably the exemption protecting their car.
Bankruptcy Exemptions
Generally, bankruptcies in the U.S. are governed by federal law. However, when it comes to bankruptcy exemptions - property excluded from the bankruptcy estate, and thus can be kept by the debtor - the bankruptcy code expressly allows states to opt-out of the federal exemptions and establish their own. Arizona, like most other states, has in fact opted out of the federal exemptions.
Arizona Personal Items Exemptions
When it comes to filing for bankruptcy, it doesn't seem fair that the court can order you to sell the clothes off your back or the wedding ring passed down from your grandmother - and in many cases they can't. Arizona has an expressed statute that allows for certain personal items to be exempt from the bankruptcy estate, and thus the debtor is allowed to keep them. The personal item exemptions can be quite specific, and include:
- Car, up to fair market value of $5,000, unless the debtor is physically disabled, in which case it is exempt up to fair market value of $10,000
- Clothes, up to fair market value of $500
- Musical instruments, up to aggregate fair market value of $250
- Pets, horses, milk cows and poultry, up to aggregate fair market value of $500
- Engagement and wedding rings, up to aggregate fair market value of $1,000
- Library of the debtor, including books, published materials and personal documents, up to aggregate fair market value of $250
- Watch, up to fair market value of $100
- One typewriter, bicycle, sewing machine, family bible, burial plot or firearm, up to aggregate fair market value of $500
- Any prostheses prescribed for the debtor, or dependent of the debtor, including a wheelchair
Filing for bankruptcy can be a particularly trying time, especially if you are attempting to protect your personal belongs. If you are considering bankruptcy and are concerned about protecting your personal property, contact an experienced bankruptcy attorney in your area today to discuss what option may be best for you.
Article provided by Arizona Law Group of Trezza & Associates, LLC
Visit us at
www.filebankruptcyinarizona.com---
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