Bankruptcy Exemptions in Arizona
In a bankruptcy, certain assets are protected by laws called “exemptions.” If an asset is exempt, a debtor is allowed to keep that item if he files for bankruptcy. Typically, an asset can only be protected if the court determines that its value is under a certain maximum limit. Arizona, like some states, has chosen to create its own list of exemptions rather than follow the list of exemptions created by the federal government. The choice to create its own exemptions makes Arizona friendlier to debtors than states following the federal guidelines because Arizona’s exemptions include more assets and greater allowable values than the standard, federal list of exemptions.
Some Assets Are Protected When Filing an Arizona Bankruptcy
In a bankruptcy, certain assets are protected by laws called “exemptions.” If an asset is exempt, a debtor is allowed to keep that item if he files for bankruptcy. Typically, an asset can only be protected if the court determines that its value is under a certain maximum limit. Arizona, like some states, has chosen to create its own list of exemptions rather than follow the list of exemptions created by the federal government. The choice to create its own exemptions makes Arizona friendlier to debtors than states following the federal guidelines because Arizona’s exemptions include more assets and greater allowable values than the standard, federal list of exemptions.
Does Bankruptcy Erase All My Debts?
There are two different bankruptcy procedures for individuals. These proceedings are known as Chapter 7 and Chapter 13. While you may be familiar with the term Chapter 11 from the news, that chapter applies to business owners only.