What Will Happen to Your Household Items in Bankruptcy?
Unfortunately, many people are under the mistaken impression that bankruptcy will take everything they own, even their sofa. Not true. The goal of the bankruptcy process is to provide you a fresh start, free of debt, but not destitute. In order to get that fresh start, you will need a basic and adequate standard of living. And the Arizona property exemptions have taken this into account.
Here is a list of some of the common exemptions clients want to know about. Note that a married couple can double these amounts:
- $4,000 for 2 beds & bedding; 1 living room chair per person; 1 dresser, table, lamp, kitchen table, dining room table & 4 chairs (1 more per person); living room rug; couch; 3 lamps; 3 coffee or end tables; pictures, paintings, drawings, portraits; refrigerator, stove, washer, dryer, vacuum cleaner; TV, radio, stereo, alarm clock.
- $150 in one bank account
- $500 for bicycle, sewing machine, rifle, pistol, shotgun
- $250 books
- $500 clothing
- $1,000 wedding/engagement rings
- $100 watch
- $250 musical instruments
- Food & fuel to last 6 months
- $5,000 funeral deposits
- health aids
- Car up to $5,000 in equity (see page on car exemption)
Common sense goes a long way here. For the most part, the bankruptcy trustee isn’t interested in selling your spare set of bed sheets. But if you have valuable personal property like an expensive coin collection or a lot of jewelry, etc. you could lose it in bankruptcy. However, even then, you may have the right to purchase it from the trustee if you can come up with the funds.
Questions About a Particular Item? Get Answers.
For most people, most of their basic household items will be exempt in a Chapter 7 bankruptcy. But if you have something of value or something you’re concerned about, call us for a free consultation.
What Makes Us Different?
- We Offer Bankruptcy Services AND Alternatives to Avoid Bankruptcy.
- You’ll be Represented by an Attorney During the Entire Process.
- Low & Reasonable Flat Fee Services.