Will I lose my guns in chapter 7 bankruptcy?
The short answer is, probably not.
Arizona law provides an exemption for, “All firearms of not more than an aggregate fair market value of two thousand dollars.” So, if your collection of firearms is worth $2,000 or less, you will be able to keep them in a chapter 7 bankruptcy. The exemption doubles if you are married.
You may be wondering how to put a value on your firearms. If you bought the firearm very recently, fair market value may be close to what you paid for the firearm. If not, then you will want to consult an expert. Taking the firearm to a gun dealer to request a valuation is one option for determining value.
What happens if your guns are worth more than $2,000? Can’t you just give them to a friend for family member to hang on to until the bankruptcy is over? Transferring the firearms to a friend or family member to avoid losing them in bankruptcy is not recommended. A trustee is assigned to your bankruptcy case and scrutinizes your property transfers made before filing your bankruptcy. The trustee has the power to undo a pre-bankruptcy transfer, which would result in the firearms being subject to seizure and sale.
If you are thinking about bankruptcy but want to make sure your guns are going to be protected, you should consult an Arizona bankruptcy attorney. We are here to help! Call or text us at 602-466-9631 or click the following link https://calendly.com/hilltoplawfirm/initial-consultation-web to schedule your free 30-minute consultation today!”