Bankruptcy in Arizona (2026): Exemptions & Means Test

Bankruptcy is federal law, but the property you keep when you file in Arizona is set by Arizona's exemption statutes. Arizona has opted out of the federal bankruptcy exemptions, so filers here use the Arizona list, which features one of the most generous homestead exemptions in the country: a $400,000 statutory base that inflation indexing has carried to roughly $437,600 for 2026. This guide explains Arizona's exemptions, the Chapter 7 means test, and where cases are filed, with figures dated so you can confirm they are still current.

This is general legal information, not legal advice, and it does not predict the result of any individual case. Exemption amounts and median-income figures change periodically, so verify the current numbers before relying on them.

Federal vs. Arizona exemptions: an opt-out state

Exemptions decide which property you keep in bankruptcy. Federal law lets a state require its residents to use the state's own exemption list instead of the federal set in 11 U.S.C. 522(d), and Arizona has done so. Under A.R.S. 33-1133(B), residents of Arizona are not entitled to the federal exemptions in 11 U.S.C. 522(d).

This means Arizona filers cannot pick the federal exemption menu. They use the Arizona exemptions in Title 33, combined with separate non-bankruptcy federal protections (for example, Social Security and most retirement accounts). About 35 states have opted out in this way, and Arizona is one of them. A residency requirement also applies: you generally must have lived in Arizona long enough for its exemptions to govern your case.

Arizona homestead exemption

The homestead exemption protects equity in your primary residence, and Arizona's is large. Under A.R.S. 33-1101, the homestead exemption has a statutory base of $400,000, an amount raised by voters through Proposition 209 in 2022. That base is not the operative number today. Subsection (D) directs that the figure be adjusted every January 1, beginning in 2024, by the August-over-August change in the Consumer Price Index for all urban consumers, rounded up to the nearest $100. Applying the three adjustments that have taken effect through January 1, 2026 to the Bureau of Labor Statistics index readings puts the exemption at approximately $437,600 for 2026.

The homestead applies to a house, condominium, mobile home, or similar primary residence. One important limit: the Arizona homestead is generally not doubled for a married couple filing jointly, unlike some other states. No Arizona agency publishes or certifies the adjusted figure, so it has to be computed from the statutory formula and the federal index; treat the 2026 number as a close estimate and confirm the amount in effect on your filing date before relying on it.

Motor-vehicle and personal-property exemptions

Arizona's motor-vehicle exemption has a statutory base of $15,000 in equity under A.R.S. 33-1125, rising to $25,000 if the debtor or a dependent has a physical disability. Like the homestead, these amounts are adjusted for inflation each January 1 beginning in 2024, which brings them to approximately $16,500 and $27,500 for 2026, so verify the current figures.

For household belongings, A.R.S. 33-1123 exempts household furniture, furnishings, goods, consumer electronics, and appliances up to an aggregate statutory base of $15,000, approximately $16,500 as indexed for 2026 under the same annual adjustment. A.R.S. 33-1125 adds smaller category limits, such as wearing apparel, a wedding and engagement ring allowance, and firearms. Notably, Arizona has no general wildcard exemption, so property must fit a specific statutory category to be protected, which makes accurate exemption selection important. Wages are well protected outside bankruptcy: under A.R.S. 33-1131(B), no more than 10 percent of disposable earnings for a week is subject to process, leaving roughly 90 percent of disposable wages exempt, which is more generous than the federal 75 percent floor. One caveat matters in a bankruptcy case: A.R.S. 33-1131(D) states that the section's exemptions do not apply to an order of a bankruptcy court under chapter XIII of the federal bankruptcy act, or to any debt due for a state or federal tax. That cross-reference is to the superseded federal Bankruptcy Act rather than the modern Chapter 13, so how far it reaches a present-day case is unsettled, and you should not assume the 90 percent figure governs what a Chapter 13 plan requires you to pay.

The Chapter 7 means test in Arizona

The means test decides whether a Chapter 7 filing is presumed abusive. It first compares your household's current monthly income, annualized, with the median family income for your household size in Arizona. At or below the median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7; above it, a second disposable-income calculation determines whether the presumption of abuse arises.

The U.S. Trustee Program publishes and periodically updates the median figures. For cases filed on or after April 1, 2026, the Arizona medians are $73,935 for a household of one, $89,027 for two, $104,965 for three, and $121,174 for four, with $11,100 added for each additional person above four. These numbers change roughly twice a year, so check the current table at justice.gov/ust for your filing date.

Chapter 7 vs. Chapter 13 in Arizona

Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, and most qualifying debts are discharged, usually within a few months. Because Arizona's homestead and vehicle exemptions are sizable, many filers keep their home and car, though the lack of a wildcard means stray non-exempt assets can be exposed.

Chapter 13 is a reorganization built around a three-to-five-year repayment plan, which can cure a mortgage default and protect a home from foreclosure. In either chapter, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection calls, lawsuits, wage garnishment, and foreclosure while the case is pending.

Where you file in Arizona

Arizona is a single federal judicial district, so every Arizona bankruptcy is filed in the U.S. Bankruptcy Court for the District of Arizona, which has divisional offices in Phoenix, Tucson, Yuma, and Flagstaff and serves the entire state. There is no separate district to choose among.

Before filing, you must complete a credit-counseling course from an approved provider, and a personal financial-management course is required before you receive a discharge. The court's local rules and forms govern the mechanics of an Arizona filing.

What bankruptcy can and cannot do

Bankruptcy discharges many common debts, including credit cards, medical bills, and personal loans. It does not erase everything. Child support and alimony, most recent taxes, and most student loans generally survive a discharge, and creditors can challenge debts tied to fraud.

Because Arizona has no wildcard and protects property only through specific categories, careful exemption planning matters, and the analysis is fact-specific. Before filing, have an Arizona lawyer confirm your chapter and your protected property in a free bankruptcy evaluation (attorney advertising). The figures here are current as of the dates noted; confirm the latest amounts before relying on them.

Frequently Asked Questions

Does Arizona use state or federal bankruptcy exemptions?

Arizona has opted out of the federal bankruptcy exemptions under A.R.S. 33-1133(B), which states that Arizona residents are not entitled to the federal exemptions in 11 U.S.C. 522(d). Filers must use the Arizona exemptions in Title 33, plus non-bankruptcy federal protections such as Social Security and most retirement accounts.

What is the homestead exemption in Arizona?

Arizona's homestead exemption has a statutory base of $400,000 under A.R.S. 33-1101, raised by Proposition 209 in 2022 and adjusted for inflation every January 1 beginning in 2024, which puts it at approximately $437,600 for 2026. It covers a primary residence such as a house, condo, or mobile home and is generally not doubled for married couples. No Arizona agency certifies the indexed figure, so confirm the amount in effect on your filing date.

What is the Arizona median income for the means test?

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Arizona's median family income as $73,935 for one person, $89,027 for two, $104,965 for three, and $121,174 for four, adding $11,100 per additional person. These figures update periodically, so verify the current table at justice.gov/ust.

Will I lose my house or car if I file bankruptcy in Arizona?

It depends on your equity. Arizona's statutory bases are $400,000 of home equity and $15,000 of vehicle equity ($25,000 with a qualifying disability), and both are indexed for inflation every January 1, which puts them at approximately $437,600 and $16,500 ($27,500 with a qualifying disability) for 2026. Equity above those limits can be at risk in Chapter 7, while Chapter 13 can help you keep secured property by repaying over time.

Does Arizona have a wildcard exemption?

No. Arizona has no general wildcard exemption, so property must fit a specific statutory category, such as the homestead, vehicle, or household-goods exemption, to be protected. That makes precise exemption selection important, and it is one reason many filers consult an attorney.

Where do I file bankruptcy in Arizona?

Arizona is a single federal district, so all cases are filed in the U.S. Bankruptcy Court for the District of Arizona, with offices in Phoenix, Tucson, Yuma, and Flagstaff serving the whole state. A credit-counseling course is required before filing and a financial-management course before discharge.

What debts cannot be discharged in Arizona bankruptcy?

Bankruptcy generally cannot erase child support and alimony, most recent tax debt, and most student loans, and creditors can challenge debts arising from fraud. Most credit-card balances, medical bills, and personal loans are typically dischargeable in Chapter 7 or Chapter 13.

What is the difference between Chapter 7 and Chapter 13 in Arizona?

Chapter 7 discharges qualifying debts in a few months, though a trustee can sell non-exempt property. Chapter 13 sets up a three-to-five-year repayment plan that can cure a mortgage default and protect property. Both invoke the automatic stay under 11 U.S.C. 362, which halts most collection and foreclosure when you file.