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New to Arizona but my debt followed me!!!

Posted by attorney Scott Macleod

Ok, I am new to Arizona but the debt followed me.

So, you are relatively new to the state of Arizona, or you moved back. Perhaps you are from California, or another state blanketed with debt. Unfortunately, the burdensome consumer obligations you faced in your former home has followed you. Perhaps you did some debt resolution research in your old state, but what about Arizona? What is exempt, what is not, and if you are ready for a discharge, can you do it here?

Well, a rule adopted in 2005 demands that a debtor must file for Chapter 7 bankruptcy relief in the jurisdiction where he or she has spent the majority of their time within the last 6 months. So, if you have been in Arizona for 91 days or more in the last 6 months, Arizona is the place for you. And, if you are like the example above, you may need to file in California. Yes, we can help with that but let’s talk Arizona, for now.

Alright, we have solved that part, but what are the rules in Arizona? What is exempt? A few of the following are important exemptions in the state of Arizona:

1) If you own a residential home, you may protect up to $150,000 in equity. Certain other limitations may apply.;

2) The state of Arizona allows $5,000.00 in equity in a vehicle. This can be a problem for many clients, but an astute legal team will probably have satisfactory answers to this issue. And;

3) $4,000.00 in household furnishings. Now, this may not sound (read) like much, but this is the value of property as it would be sold to someone who would buy it. Often, think garage sale or other public sale.

These are a few of the exemptions. Remember, a well-crafted filing is also going to mean a well-crafted result and that result? A total discharge of all of your personal debt. Most Chapter 7s are about dotting your “I"s and crossing your “T"s.

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