Thursday, 03 July 2014 09:40

Chapter 7 Bankruptcy Property Exemptions for Individual Debtors

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Many people think that they will lose everything they own in a bankruptcy.  However, a Chapter 7 bankruptcy does not require you to lose everything you own.  The bankruptcy code and state law provide several exemptions for people in bankruptcy.  With a little planning, many people can emerge from a Chapter 7 bankruptcy without losing their property.  The following list includes all of the common exemptions under Arizona law.



1. The following household goods and furnishings up to a total value of $4,000.00:

A. Dining room table and chairs

B. Couch

C. Living room chairs

D. Three coffee or end tables

E. Three lamps

F. Carpet or rug

G. Beds

H. Bed-table, dresser and lamp for each bed

I. Bedding for each bed

J. Pictures, paintings and drawings by debtor and family in frames

K. One television, radio or stereo

L. Radio alarm clock

M. Stove

N. Refrigerator

O. Washing machine

P. Clothes dryer

Q. Vacuum cleaner

2. Food, fuel and provisions for six months

3. The following personal items:

A. Wearing apparel up to a total value of $500.00

B. Musical instruments up to a total value of $400.00

C. Pets, horses, milk cows, and poultry up to a total value of $800.00

D. Engagement and wedding rings up to a total value of $2,000.00

E. Library up to a total value of $250.00

F. Watch up to a value of $150.00

G. Typewriter, bicycle, sewing machine, family bible, burial lot, one shotgun or rifle or pistol for a total value up to $1,000.00

H. Vehicle up to a net value of $6,000.00 ($12,000.00 if disabled)

I. Prescribed prostheses including wheelchair

4. The following money benefits or proceeds:

A. Life insurance proceeds payable to a surviving spouse or child up to $20,000.00

B. The earnings of a minor child

C. Child support and spousal maintenance

D. Benefits from a health, accident or disability insurance policy

E. Money from a claim for the destruction of exempt property

F. Cash surrender value of life insurance policy maintained for two years or more with a dependant for a beneficiary

G. Annuity at least two years old with dependant as beneficiary

H. Claim for damages relating to exempt property

I. One bank account up to $300.00

J. Retirement plans under Sections 401(a), 403(a), 403 (b), 408, 408A, 409 and 457 of the Internal Revenue Code of 1986, but NOT an alternate payee pursuant to a qualified domestic relations order and NOT contributions made within 120 days of filing bankruptcy

5. Teachers’ school equipment

6. Tools of a trade actually used in a trade up to a value of $5,000.00

7. Farm equipment of a debtor whose primary income is from farming up to a value of $2,500.00

8. Arms, uniforms and accouterments required by law to be kept by debtor

9. A house, condominium, mobile home (plus the land on which the mobile home sits) up to a net value of $150,000.00 (or proceeds from the sale thereof) OR prepaid rent in the amount of $2,000.00


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Thomas A. Morton, P. L. L. C.
2916 N. 7th Avenue, Suite 100
Phoenix, Arizona 85013
(602) 595-6870

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