Filing Bankruptcy in Arizona

Here is some information that you may find helpful when considering filing for bankruptcy in Arizona.  Bankruptcy is a system of federal law.  Bankruptcy is not a state program.  The process of filing bankruptcy, be it Chapter 7 or Chapter 13 is nearly identical in every state, including Arizona.  Figuring out which option is better for you is something that the help of an experienced bankruptcy attorney would be helpful.

Arizona state law does play a part in filing for bankruptcy.  Each state, including Arizona sets it’s property exemptions, which determine what property you get to keep (if you file for Chapter 7) and how much you have to repay to your creditors (if you file for Chapter 13). There are also important resources available to you by state of Arizona. Some important information includes which credit counseling agency is approved by the state of Arizona.  Therefore, prior to filing bankruptcy you must take a credit counseling class.  Arizona has select agencies who are approved.

Arizona Credit Counseling When Filing Bankruptcy

Before you file for Chapter 7 or Chapter 13 bankruptcy in Arizona, you will have to complete mandatory credit counseling with an agency that’s been approved by the United States Trustee’s Office. There are many agencies that offer credit counseling, please make sure that you use an approved counseling agency when filing bankruptcy in Arizona.

Property Exemptions in Arizona for Bankruptcy

Like every other state, Arizona has its own set of property exemptions. Thus, someone filing for bankruptcy in Arizona must be mindful of the property exemptions for the state of Arizona.

In Arizona, you must use the state’s exemption list; although some states allow debtors to choose between the state list and a federal list, Arizona isn’t among them.

Arizona provides a generous homestead exemption that protects up to $150,000 in equity in a house or other real property. Arizona law also allows debtors to keep food and fuel for up to six months, and up to $6,000 equity in a vehicle.

Where to File for Bankruptcy in Arizona

When filing for bankruptcy in Arizona, you have a few options.  There are bankruptcy courts in Phoenix, Tucson, Flagstaff, Prescott, and Yuma.  The Bankruptcy Court of Arizona’s website offers you additional information on forms, local rules, and more. There are many other helpful tools for you when filing for bankruptcy in Arizona.