Understanding the Arizona homestead exemption is crucial if you’re considering bankruptcy. In 2025, the Arizona homestead exemption is approximately $425,200. It provides homeowners with a shield for their home’s equity.
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.
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.
Your homestead is exempt when you file Chapter 7 unless it appreciates above the homestead amount while the case is open. If this happens, you could lose it unless you file the appropriate pleading.