People file bankruptcy in Arizona to discharge most debts. The Arizona bankruptcy exemptions allow a debtor to retain certain property. This is called exempt property, and it is protected. Debtors must understand the Arizona bankruptcy exemptions to know which assets they may retain.
Potential clients frequently ask whether filing bankruptcy in Arizona is their best option. Before filing, you also must understand the differences between Chapter 7 and Chapter 13. If you are considering bankruptcy, always consult with an experienced Arizona bankruptcy lawyer prior to making any decisions. Every person’s situation is different.
When you are navigating the bankruptcy process, it’s essential to understand the debts not dischargeable in bankruptcy. This includes recent taxes, unpaid domestic support, student loans, HOA assessments, and debts incurred by fraud.
Understanding the Arizona homestead exemption is crucial if you’re considering bankruptcy. The Arizona homestead exemption is currently $414,800. It provides homeowners with a shield for their home’s equity.
Redemption of personal property in bankruptcy is a powerful tool. It allows debtors to keep secured property, such as a car, furniture, solar panels, and soft water systems. This is accomplished by paying the creditor the actual value of the property shortly after filing Chapter 7.
A reaffirmation agreement in bankruptcy is a form agreement between a debtor and a secured creditor, such as a vehicle lender. The debtor agrees to pay back a specific debt even after bankruptcy. In return, the creditor promises not to repossess the collateral associated with that debt so long as the debtor stays current with payments. Reaffirmation agreements are available in Chapter 7, not Chapter 13. They are primarily used for secured vehicle loans, not mortgages.
The Arizona Supreme Court recently held an RV is not an exempt homestead protected in bankruptcy proceedings. The ruling has implications for individuals who reside in their RVs and seek bankruptcy protection.