Arizona Bankruptcy Exemptions
Values of Arizona bankruptcy exemptions change in response to political pressures
All Arizona bankruptcy exemptions are subject to constant update and amendment by the state legislature, and further preemption by the Federal Code. The new bankruptcy laws provided by the Federal Code establish a maximum value limitation on homestead values which may be claimed as exempt. Currently, the Federal cap remains higher than the State of Arizona bankruptcy allowance, but either the state or federal legislatures could amend values at any given future date.
Why do Arizona new laws change?
As frustrating as it may seem, changes in the economy and political influence often result in amendments to serve temporary pressures. What was once considered poverty may now be considered extravagant when assessing reasonable living expenses, despite never-ending inflation. This ironic development now appears in the Federal Code under the guise of the new means test. Additionally, Arizona bankruptcy debtors must remain ready and able to prove exempt status of all property designated within claim form H in Chapter 7, and if filing Chapter 13, prove, as a condition of conformation, that all creditors receive a more favorable distribution under the pan than available through liquidation.