Bankruptcy
What happens to my house in a chapter 7 bankruptcy?
It is rare for a person to lose a house in an Arizona chapter 7 bankruptcy case. That’s because the exemption for most people is $250,000 of your house’s equity (A.R.S. § 33-1101). If your home’s value, less any mortgages, is $250,000 or less, there’s a good chance you will get to keep your home. You do have to live in the house to claim the exemption.
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Is My Bank Account Protected in a Chapter 7 Bankruptcy?
Arizona law allows you to keep $300 in one bank account. A.R.S. § 33-1126(A)(9). This only applies to the day that your chapter 7 bankruptcy petition is filed. It is important to note that that the law does NOT allow you to just withdraw cash to get under the $300 limit and then deposit it
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Can I keep my car in a Chapter 7 Bankruptcy?
ARS § 33-1125(8) allows you to protect, “equity in one motor vehicle of not more than six thousand dollars. If the debtor or debtor’s dependent has a physical disability, the equity in the motor vehicle shall not exceed twelve thousand dollars.” If you are married, you can double this exemption and use it on the same car, or if you are a two-car family, use each exemption on a separate car.
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To Reaffirm A Vehicle Or Not? Reviewing Your Options
When filing for Chapter 7 bankruptcy, you do have some options when it comes to your vehicle. If you are in good standing with the payments on the vehicle you are purchasing and would like to continue making payments, you may be able to enter into a reaffirmation agreement with your creditor. Bankruptcy exemptions for chapter 7 allow you to have up to $6,000 in equity for one motor vehicle or $12,000 if you are married.
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