Written by When a person (called the debtor) files a Chapter 7 bankruptcy, the bankruptcy trustee will generally seek to sell the debtors possessions to pay creditors. However, the debtor does get to keep certain assets that are “exempt” by statute. The following items are examples of exempt property:
- residence up to $150,000 in equity
- car up to $5,000 equity for an individual debtor
- IRA’s
- household furniture up to $4,000 in equity
- 6 months worth of food and provisions
Check out the link below for a complete list of exempt property in Arizona.
http://www.azb.uscourts.gov/documents/arizona_exemptions.pdf