Arizona law
Bankruptcy Laws in Arizona.
Arizona opts out of federal bankruptcy exemptions. The state offers a generous $400,000 homestead exemption (increased from $250,000 in 2023, with annual CPI adjustments). Tools of trade are fully exempt with no dollar cap — unique among states. Arizona has no wildcard exemption. The $15,000 vehicle exemption ($25,000 for disabled) is also subject to annual CPI adjustments starting 2024.
Last verified: 2026-02-25
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State law
Filing Requirements
Approximate annual median: 1 person ~$72,039; 2 persons ~$85,400; 3 persons ~$102,900; 4 persons ~$113,200. Updated semi-annually by the U.S. Trustee Program.
State law
Key Arizona Statutes
Protects up to $400,000 in equity in the debtor's primary residence (increased from $250,000 by HB 2617, effective 2023). Adjusted annually by CPI starting January 1, 2024. Covers real property, condominiums, cooperatives, mobile/manufactured homes.
Protects up to $15,000 in motor vehicle equity ($25,000 if debtor or dependent has a physical disability). Subject to annual CPI adjustments starting 2024.
Household goods/furnishings/electronics: $15,000. Wearing apparel: $500. Musical instruments: $400. Engagement/wedding rings: $2,000. Books/personal documents: $250. No wildcard exemption.
Tools and equipment used in commercial activity, trade, business, or profession are fully exempt with no dollar cap — a notably generous exemption.
Life insurance cash value/proceeds, health/disability/accident insurance proceeds, and workers' compensation benefits are exempt.
State law
Official Sources
Not Legal Advice
This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Arizona.
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