Arizona
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 at $400,000. 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 is $400,000, an amount raised by voters through Proposition 209 in 2022. The statute directs that the figure be adjusted for inflation every January 1, beginning in 2024, by the change in the Consumer Price Index, rounded up to the nearest $100, so the current amount is at or above $400,000.
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. Because the figure re-indexes annually, confirm the amount in effect on your filing date before relying on it.
Motor-vehicle and personal-property exemptions
Arizona's motor-vehicle exemption is $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, this amount is adjusted for inflation each January 1 beginning in 2024, so verify the current figure.
For household belongings, A.R.S. 33-1123 exempts household furniture, furnishings, goods, consumer electronics, and appliances up to an aggregate $15,000. 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: under A.R.S. 33-1131, only a small fraction of disposable earnings is reachable by most creditors, leaving roughly 90 percent of disposable wages exempt, which is more generous than the federal 75 percent floor.
The Chapter 7 means test in Arizona
The means test decides whether you are eligible to file Chapter 7. 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, you generally pass; above it, a second disposable-income calculation determines eligibility.
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. Many people consult a licensed Arizona bankruptcy attorney before filing to confirm which chapter fits and which property is protected. 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 is $400,000 under A.R.S. 33-1101, raised by Proposition 209 in 2022 and adjusted for inflation every January 1 beginning in 2024. It covers a primary residence such as a house, condo, or mobile home and is generally not doubled for married couples. Confirm the current indexed amount 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 protects up to $400,000 of home equity and up to $15,000 of vehicle equity ($25,000 with a qualifying disability), both indexed annually. 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.
Overwhelmed by debt in Arizona? Get a free bankruptcy consultation
Bankruptcy can stop foreclosure, wage garnishment, and creditor calls, and which debts you can clear and what property you keep depend on Arizona's exemptions. Get a free, confidential consultation with a Arizona bankruptcy attorney to understand your options. There is no obligation.
Updates
Governing law re-checked for recent changes
The Law Behind This Article
This article rests on 6 statutory provisions held in our own legal record, each retrieved from the official source. Tap a section to read the operative text.
Arizona Revised Statutes, Title 33 (Property), Chapter 8 (HOMESTEAD AND PERSONAL PROPERTY EXEMPTION), Article 1 (Homesteads and Homestead Exemption)
§ 33-1101Homestead exemptions; persons entitled to hold homesteads; annual adjustmentIn force
(Caution: 1998 Prop. 105 applies) A. Any person who is at least eighteen years of age, married or single, and who resides within this state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding $400,000 in value, any one of the following: 1. The person's interest in real property in one compact body on which exists a dwelling house in which the person resides. 2. The person's interest in one condominium or cooperative in which the person resides. 3. A mobile home, park model trailer, motor home, travel trailer, fifth wheel trailer, houseboat, manufactured home or other form of shelter in which the person resides plus the land on which that shelter is located. B. Only one homestead exemption may be held by a married couple or a single person under this section. The value as specified in this section refers to the equity of a single person or married couple.
Official text (excerpt) · as of 2026-08-04 · Read the full section at azleg.gov
Arizona Revised Statutes, Title 33 (Property), Chapter 8 (HOMESTEAD AND PERSONAL PROPERTY EXEMPTION), Article 2 (Personal Property Exemption)
§ 33-1123Household furniture, furnishings and appliances; annual adjustmentIn force
(Caution: 1998 Prop. 105 applies) A. Household furniture and furnishings, household goods, including consumer electronic devices, and household appliances personally used by the debtor or a dependent of the debtor and not otherwise specifically prescribed in this chapter are exempt from process provided their aggregate fair market value does not exceed $15,000. B. The exemption provided by this section shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100.
Official text (excerpt) · as of 2026-08-04 · Read the full section at azleg.gov
§ 33-1125Personal itemsIn force
(Caution: 1998 Prop. 105 applies) The following property of a debtor used primarily for personal, family or household purposes is exempt from process: 1. All wearing apparel of not more than a fair market value of five hundred dollars. 2. All musical instruments provided for the debtor's individual or family use of not more than an aggregate fair market value of four hundred dollars. 3. Horses, milk cows and poultry of not more than an aggregate fair market value of one thousand dollars. 4. All engagement and wedding rings of not more than an aggregate fair market value of two thousand dollars. 5. The library of a debtor, including books, manuals, published materials and personal documents of not more than an aggregate fair market value of two hundred fifty dollars. 6. One watch of not more than a fair market value of two hundred fifty dollars. 7. One typewriter, one computer, one bicycle, one sewing machine, a family bible or a lot in any burial ground of not more than an aggregate fair market value of two thousand dollars. 8. Equity in one motor vehicle of not more than $15,000.
Official text (excerpt) · as of 2026-08-04 · Read the full section at azleg.gov
§ 33-1133Other exemption lawsIn force
A. Nothing in this article shall be construed to displace other provisions of law which afford additional or greater protection to a debtor's property. B. Notwithstanding subsection A, in accordance with 11 U.S.C. 522 (b), residents of this state are not entitled to the federal exemptions provided in 11 U.S.C. 522 (d). Nothing in this section affects the exemptions provided to residents of this state by the constitution or statutes of this state.
Official text (excerpt) · as of 2026-08-04 · Read the full section at azleg.gov
United States Code Title 11
§ 362Automatic stayIn forcecited in 18 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · as of 2026-07-28 · Read the full section at uscode.house.gov
Also relied on in: Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test, Bankruptcy in Georgia (2026): Exemptions & Means Test
§ 522ExemptionsIn forcecited in 52 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · as of 2026-07-28 · Read the full section at uscode.house.gov
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
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Sources and References
- A.R.S. 33-1101, Arizona homestead exemption ($400,000, annual inflation adjustment beginning January 1, 2024)(azleg.gov).gov
- A.R.S. 33-1133(B), Arizona opt-out: residents are not entitled to the federal exemptions in 11 U.S.C. 522(d)(azleg.gov).gov
- A.R.S. 33-1125, personal-item exemptions including the $15,000 (or $25,000 disabled) motor-vehicle equity exemption(azleg.gov).gov
- A.R.S. 33-1123, $15,000 household furniture, furnishings, goods, and appliances exemption(azleg.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by Family Size, cases filed on or after April 1, 2026 (Arizona: $73,935 / $89,027 / $104,965 / $121,174)(justice.gov).gov
- 11 U.S.C. 522, exemptions and the state opt-out authority under 522(b)(law.cornell.edu)
- 11 U.S.C. 362, the automatic stay that halts collection on filing(law.cornell.edu)