Chapter 7 Bankruptcy Lawsuit in Arizona

Arizona Chapter 7 Exemptions

Arizona is an opt-out state, so an Arizona debtor may not elect the federal Section 522(d) exemptions and must use the Arizona state set (Ariz. Rev. Stat. Section 33-1101 et seq.). (Source: Nolo, Filing for Bankruptcy in Arizona.)

Homestead, Vehicle, and Wildcard

Arizona's homestead exemption has a statutory base of $400,000 and is CPI-adjusted (rounded up to the nearest $100) each January 1 under A.R.S. Section 33-1101; the exemption is automatic. The exact CPI-adjusted 2026 homestead figure (at or above $400,000) is UNVERIFIED in the sources reviewed — the $400,000 base is the confirmed statutory floor, and the current indexed amount should be verified against A.R.S. Section 33-1101. A motor vehicle is protected up to $15,000 ($25,000 if the debtor or a dependent has a disability) under A.R.S. Section 33-1125(8). Arizona has NO wildcard exemption, so any asset not specifically listed is not protected. (Source: Nolo, Filing for Bankruptcy in Arizona.)

Means Test: Arizona Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For Arizona, the U.S. Trustee median family income for a household of four is $121,174 (U.S. Trustee median family income, eff. April 1, 2026; smaller households use lower figures). Below-median filers are generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in Arizona for the 730 days before filing to use Arizona's exemptions; otherwise an earlier state's set or the federal exemptions may apply.

To compare your six-month income against the Arizona median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property Arizona exemptions might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.