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What Happens to Your Property in a Bankruptcy?

There are many misconceptions about the bankruptcy process. These misconceptions may be preventing you from getting the fresh start you deserve.

One common area of confusion concerns what property is exempt from the bankruptcy process. Bankruptcy exemptions are important in ensuring that the process improves your situation. Deciding whether to pursue bankruptcy relief requires an understanding of bankruptcy exemptions and how they apply to your property.

Arizona statutes describe the exemptions allowed when declaring bankruptcy. The law can be confusing when you attempt to apply it to your property. The Turnaround Team has decades of experience helping people with debt problems get a fresh start. Our Arizona bankruptcy attorneys can help you understand how the law will be applied to your property

Major Bankruptcy Exemptions

Brian Blum - Chapter 7 Bankruptcy Attorney“I do not sugarcoat the facts. Clients appreciate that they can rely on me for straightforward information, even when the truth is hard to hear.”
Brian M. Blum, Managing Attorney

Some exemptions apply in bankruptcy no matter how much they are worth. For example, qualified retirement accounts have no pre-set ceiling on how much can be protected.

Other assets, including your home, are exempt only up to a certain amount. The homestead exemption in Arizona is $150,000. That means that your interest in the property is exempt if it is less than $150,000. If you have more than that amount of equity in your home, it is possible that the bankruptcy trustee would sell your house, give you the $150,000 exemption and use the rest to pay your creditors. You need to discuss this possibility with an experienced bankruptcy lawyer before filing for Chapter 7 bankruptcy protection.

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In addition to the homestead exemption, you are allowed to keep other property through the bankruptcy process. There are many exemptions, including exemptions for one vehicle ($6,000), household furniture and goods ($6,000), a wedding or engagement ring ($2,000), certain life insurance proceeds ($20,000), tools and equipment used for work ($5,000) and more.

Planning for Tomorrow

Bankruptcy is all about getting a new opportunity at life, free from the burden of old debt. That new life would be an empty promise if the bankruptcy process left you with nothing. Bankruptcy exemptions are something you must understand before making an informed decision about whether to pursue bankruptcy. The Turnaround Team can give you the guidance and protection you need to plan for tomorrow.

Debt does not have to control your life. We can help you make a fresh start with a brighter financial outlook. If debt has left you in a constant state of worry, you need help. Let’s turn it around.

Discuss Your Rights in a Free, One-Hour Consultation

Bankruptcy has the power to turnaround a difficult situation. Contact The Turnaround Team online to learn about bankruptcy exemptions and how they might apply to you. You can also reach us at (480) 420-1999.

 

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