Ellett Law Offices, P.C.

Since 1993, Ellett Law Offices has provided thousands of clients with quality bankruptcy attorney representation. Bankruptcy law is complicated but you will be guided through the process by a knowledgeable and experienced bankruptcy attorney.

What Property can I Keep in a Chapter 7 Bankruptcy?

August 19, 2014 by  
Filed under Blog

chapter 7 bankruptcyWhen you file for Chapter 7 bankruptcy (http://www.ellettlaw.com/chapter-7-bankruptcy), a bankruptcy trustee will take some of your property, liquidate it, and use the proceeds to pay off some of your debts. Though losing property may deter you at first from filing for bankruptcy, you should know that Arizona law provides numerous exemptions that allow you to keep certain kinds of assets, income, and property. Arizona Bankruptcy Exemptions While some states allow bankruptcy filers to use the exemptions set out in federal law, Arizona requires you to apply the exemptions in state legislation. Under state law, filers may keep the following property:

  • Up to $150,000 of equity in your home
  • Up to $6,000 of motor vehicle equity
  • Up to $6,000 of home appliances and furniture
  • Up to $2,000 of wedding or engagement rings
  • Life insurance benefits up to $20,000
  • Up to $300 in bank account deposits
  • Up to $500 in clothes
  • Up to $400 in musical instruments
  • Up to $1,000 in goods including guns, computers, bibles, bicycles, or sewing machines
  • Up to $800 worth of pets
  • Up to $250 in books
  • Up to $150 in wrist watches
  • All prescribed home health aids
  • All materials used to teach children
  • Up to $5,000 of tools used for a trade or profession
  • Generally, worker’s compensation and unemployment compensation payments
  • 75% of your disposable income or up to 30 times $7.25 per hour, the federal minimum wage

In addition to these basic exemptions, married couples may be able to double the amount of many of the above, including home goods and motor vehicles. A couple may not, however, double the amount of equity they get to keep in their home.

Contact a Phoenix Chapter 7 Bankruptcy Lawyer for a free consultation

An experienced bankruptcy attorney knows how to make the best use of the Chapter 7 bankruptcy exemptions in Arizona to make sure you keep the maximum amount of property and assets possible. At the Ellett Law Offices, our attorneys are committed to achieving the best possible results for every individual client. If you are facing financial struggles, do not hesitate to contact our office at (602) 235-9510 for a free consultation. Ellett Law Offices , P.C. 2999 N. 44th Street, Suite 330 Phoenix, AZ 85018 Phone: 602-235-9510 Fax: 602-235-9098

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