Common Arizona Bankruptcy Exemptions
Cannot use federal exemption — must use state exemptions listed below.
Many dollar figures for Arizona exemptions are subject to annual adjustment after 1/1/24. Updated to reflect 2026 cost-of-living adjustments and Laws 2025, Chapter 111 (SB 1540); confirm current figures against A.R.S. Title 33 as of the filing date.
Several exemption amounts below are adjusted every January 1 by the change in the CPI-U (U.S. city average, all items), measured August-over-August, rounded up to the nearest $100. Where an updated 2026 figure is confirmed, it is shown alongside the statutory base amount.
Homestead
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1101 | Interest in real property upon which debtor’s house sits, condominium or cooperative, mobile home, park model trailer, motor home, travel trailer, fifth wheel trailer, houseboat, manufactured home, or other form of shelter in which debtor resides, plus the land upon which that shelter is located, or the cash proceeds of the sale of such property for 18 months after the sale (or until a new homestead is established, if sooner). Statutory base is $400,000; adjusted annually for cost of living beginning 1/1/24 — $437,600 for 2026. May not be doubled by a married couple. Does not attach to cash-out proceeds from refinancing. Under Laws 2025, Ch. 111 (SB 1540), if equity is within the exemption amount as of the bankruptcy filing date, the homestead is treated as 100% exempt, and any increase in value during the pendency of the case remains 100% exempt. |
Personal Property
Husband and wife may double all personal property exemptions.
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1123 | Household furniture and furnishings, household goods, including consumer electronic devices, and household appliances personally used by the debtor or a dependent of a debtor and not otherwise specifically prescribed in this chapter, up to $15,000 in fair market value (statutory base, adjusted annually for cost of living beginning 1/1/24 — confirm current 2026 figure before filing). |
| A.R.S. § 33-1124 | All food, fuel and provisions for debtor’s individual or family use to last up to six months. |
| A.R.S. § 33-1125(1) | All wearing apparel used primarily for personal, family or household purposes with a fair market value not greater than $500. |
| A.R.S. § 33-1125(2) | All musical instruments for debtor’s individual or family use with a total fair market value not greater than $400. |
| A.R.S. § 33-1125(3) | Domestic pets, horses, milk cows and poultry with a fair market value not greater than $1,000. |
| A.R.S. § 33-1125(4) | All engagement and wedding rings with a total fair market value not greater than $2,000. |
| A.R.S. § 33-1125(5) | Debtor’s library, including books, manuals, published materials and personal documents with a fair market value not greater than $250. |
| A.R.S. § 33-1125(6) | One watch with a fair market value not greater than $250. |
| A.R.S. § 33-1125(7) | One typewriter, one computer, one bicycle, one sewing machine, a family bible, a burial plot, one shotgun or one rifle or one pistol, with a total fair market value not greater than $2,000. |
| A.R.S. § 33-1125(8) | Equity in one motor vehicle, up to $15,000 statutory base — $16,500 for 2026. If debtor (or debtor’s dependent) is physically disabled, the exemption rises to $25,000 statutory base — $27,500 for 2026. Adjusted annually for cost of living beginning 1/1/24. |
| A.R.S. § 33-1125(9) | All professionally prescribed prostheses for debtor or a dependent of the debtor, including a wheelchair. |
| A.R.S. § 33-1125(10) | Firearms, up to $2,000 in value. |
| A.R.S. § 33-1125(11) | All domestic animals or pets, no limit on value. |
Money, Benefits or Proceeds
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1126(A)(1) | Life insurance proceeds up to $20,000 if payable to surviving spouse or child upon the life of a deceased spouse, parent or legal guardian. |
| A.R.S. § 33-1126(A)(2) | Minor child’s earnings unless debt to be discharged was contracted for the special benefit of the minor child. |
| A.R.S. § 33-1126(A)(3) | All money for child support or spousal maintenance received pursuant to a court order. |
| A.R.S. § 33-1126(A)(4) | All money, proceeds or benefits from employer health, accident, disability insurance benefits or similar employer benefit program. |
| A.R.S. § 33-1126(A)(5) | All money from the destruction of or damage to exempt property and all proceeds or benefits arising from fire or other insurance on exempt property. |
| A.R.S. § 33-1126(A)(6); A.R.S. § 20-1131(D) |
Cash surrender value of life insurance policies where for a continuous unexpired period of two years such policies have been owned by a debtor and have named as beneficiary the debtor’s surviving spouse, child, parent, brother or sister, or any other dependent family member, except for the amount of any premium that is avoidable by a creditor as a fraudulent transfer. |
| A.R.S. § 33-1126(A)(7) | An annuity contract where for a continuous unexpired period of two years such contract has been owned by a debtor and has named as beneficiary the debtor, debtor’s surviving spouse, child, parent, brother or sister, or any other dependent family member, except for the amount of any premium that is avoidable by a creditor as a fraudulent transfer. |
| A.R.S. § 33-1126(A)(8) | Any claim for damages for levy upon or sale under execution of exempt personal property or for wrongful taking or detention of exempt personal property. Does not apply to annuities, nor to cash surrender values increased by premium payments made within two years in excess of the average annual premium paid during the previous three years. |
| A.R.S. § 33-1126(A)(9) | Up to $5,000 held in a single account in any one financial institution. This amount is not exempt from normal service charges assessed by the bank. |
| A.R.S. § 33-1126(A)(10) | Money in a 529 college savings plan, either as the owner or as the beneficiary. Does not include money contributed to the plan within two years before a debtor files for bankruptcy. |
| A.R.S. § 33-1126(A)(11) | The refundable portion of any federal or state personal income tax credits from earned income tax credits and child tax credits (the exemption shall be the lesser of the total combined amount of tax refunds or the total combined amount of earned income tax credits and any child tax credits claimed on the return). Codified by Laws 2022, Ch. 346 and carried forward by Laws 2025, Ch. 111 (SB 1540). |
| A.R.S. § 33-1126(B) | Benefits from ERISA-qualified retirement plan or deferred compensation plan — except those amounts contributed within 120 days before bankruptcy filing. Does not apply to an alternate payee under a qualified domestic relations order. Not exempt from orders resulting from a judgment for child support arrearages or child support debt. |
| A.R.S. § 33-1126(C) | Prepaid rent, including security deposits, for debtor’s residence, not exceeding the lesser of $2,000 where debtor has not claimed a homestead exemption. Not exempt from orders resulting from a judgment for child support arrearages or child support debt. |
| A.R.S. § 20-1132 | Group life insurance policy or proceeds. |
School Equipment
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1127 | Library and philosophical and chemical or other apparatus used for instruction of youth in any university, college, seminary of learning, or school. |
Fire Fighting Equipment
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1128 | All fire engines, hooks and ladders, with the carts, trucks, carriages, hose, buckets, implements and apparatus, all furniture and uniforms of any fire company or department formed under Arizona law. |
Tools and Equipment
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1130(1) | Tools, equipment, instruments and books (including phone numbers, client or customer contact information, or marketing tools, e.g. websites, domain names or any other intangible work product) in the possession of debtor or debtor’s spouse primarily used and necessary to carry the commercial activity, trade, business or profession of debtor or debtor’s spouse, with a fair market value not greater than $5,000. Tools do not include a motor vehicle primarily used for personal, family or household purposes such as transportation to debtor’s employment. |
| A.R.S. § 33-1130(2) | Farm machinery, utensils, implements of husbandry, feed, seed, grain and animals belonging to debtor, with a value not to exceed $2,500, where debtor’s primary income is derived from farming. |
| A.R.S. § 33-1130(3) | All arms, uniforms and accoutrements required by law to be kept by a debtor. |
Wages, Salary, Compensation
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 33-1131(B), (C), (D) | Ninety percent (90%) of disposable earnings, provided debtor earns 60 times the applicable minimum hourly wage in effect at the time the earnings are payable. These exemptions do not apply in a Chapter 13 bankruptcy filing. “Disposable earnings” means that remainder of wages for the employee’s services (including bonuses, commissions, and payments made by a pension or retirement plan or deferred compensation plan), after deducting those amounts required by law to be withheld. |
Pensions
| Code / Authority | Exemption Description |
|---|---|
| A.R.S. § 15-1628(I) | Arizona Board of Regents members — benefits, annuities and employee and employer contributions established by the Arizona Board of Regents. |
| In re Herrscher, 121 B.R. 29 (D. Ariz. 1990) | IRAs. |
| A.R.S. § 9-931 | Police Officers Pension. Exemption does not apply to court orders for arrearages of child support or child support debt. |
| A.R.S. § 9-968 | Fire Fighters’ Relief and Pension Fund. Exemption does not apply to court orders for arrearages of child support or child support debt. |
| A.R.S. § 38-762 | Arizona State Retirement System — state employee’s survivor benefits before retirement. |
| A.R.S. § 38-850(C) | Public Safety Personnel Retirement System benefits. |
| A.R.S. § 41-955 | Arizona Rangers’ Pension. |
Public Benefits
| A.R.S. Code | Exemption Description |
|---|---|
| A.R.S. § 23-783 | Unemployment compensation benefits. |
| A.R.S. § 23-1068 | Workers’ compensation benefits. |
| A.R.S. § 46-208 | Welfare assistance benefits. |
The exemptions below are federal non-bankruptcy exemptions, available to Arizona debtors in addition to the state exemptions listed above.
Federal Non-Bankruptcy — Retirement Benefits
| U.S. Code | Exemption Description |
|---|---|
| 5 U.S.C. § 8346(a) | Government employees’ retirement payments. |
| 10 U.S.C. § 1440 | Annuities paid to members of the armed services, based on retirement or retainer pay. |
| 38 U.S.C. § 1562(c) | Army, Navy, Air Force pensions and Coast Guard Medal of Honor roll benefits. |
| 38 U.S.C. § 3101 | Veterans’ Administration (VA) benefits. |
| 45 U.S.C. § 231m | Railroad Retirement Act of 1974 — retirement annuities. |
| 42 U.S.C. § 407 | Social security benefits. |
| 50 U.S.C. § 403 | Central Intelligence Agency retirement benefit payments. |
Federal Non-Bankruptcy — Survivors’ Benefits
| U.S. Code | Exemption Description |
|---|---|
| 10 U.S.C. § 1450(i) | Military survivor annuities paid pursuant to the Survivor Benefits Plan. |
Federal Non-Bankruptcy — Death & Disability Benefits
| U.S. Code | Exemption Description |
|---|---|
| 5 U.S.C. § 8130 | Disability and death benefits paid to federal government employees as a result of work injuries. |
| 15 U.S.C. § 1673 | 75% of earned but unpaid wages. |
| 33 U.S.C. § 916 | Death and disability payments under the Longshoremen’s and Harbor Workers’ Compensation Act. |
| 42 U.S.C. § 1717 | Compensation paid for injury or death resulting from a war risk hazard under the War Hazards Compensation Act, 42 U.S.C. § 1701 et seq. |
Federal Non-Bankruptcy — Money, Benefits, Proceeds
| U.S. Code | Exemption Description |
|---|---|
| 10 U.S.C. § 1035(d) | A United States service member’s deposits in a savings institution while the depositor is on permanent duty outside of the United States. |
| 38 U.S.C. § 1970(g) | Benefits due or to become due under servicemen’s group life insurance. |
| 38 U.S.C. § 5301(a) | Veterans’ benefits. |
| 45 U.S.C. § 352(e) | Railroad workers’ unemployment insurance benefits. |
Federal Non-Bankruptcy — Miscellaneous
| U.S. Code | Exemption Description |
|---|---|
| 25 U.S.C. §§ 543, 545 | Credits given to members of the Klamath Indian tribes in Oregon by the Secretary of the Interior. |
| 25 U.S.C. § 410 | Money accruing from any lease or sale of lands held in trust by the United States for any Indian. |
| 25 U.S.C. § 412a | Homesteads purchased out of the trust or restricted funds of individual Indians from taxation and title to such homesteads shall be held subject to restrictions against alienation or encumbrance except with the approval of the Secretary of the Interior. |
| 46 U.S.C. § 11111 | Debts incurred by a seaman while on a voyage. |
2026 figures reflect Laws 2025, Chapter 111 (SB 1540) and the January 1, 2026 cost-of-living adjustments to A.R.S. §§ 33-1101, 33-1123, and 33-1125. Verify current dollar amounts against A.R.S. Title 33 (azleg.gov) and the applicable adjustment notice as of the client’s filing date before relying on these figures.
Arizona Bankruptcy Court
U.S. Courthouse and Federal Building
230 North 1st Avenue, Suite 101
Phoenix, AZ 85003
U.S. Courthouse and Federal Building
230 North 1st Avenue, Suite 101
Phoenix, AZ 85003