The Arizona exemptions provide that up $150,000 of equity in your home is protected from your creditors. This applies if you file for bankruptcy as well. This means that if you are current on your house payments and have, in fact, some equity in your home, the Trustee cannot make you sell your home and pay your equity to your creditors as long is it is less than $150,000. Furthermore, while too much equity is not really much of a problem these days, even if you are over the $150,000 limit by a little bit, the Trustee will often agree to let you make payments for the difference, rather than making you you’re your home. Finally, while Arizona is an opt-out state and has chosen to use its own state exemptions for bankruptcy debtors, there is a portion of the Bankruptcy Code that may have the effect of limiting your homestead exemption to $136,874.00. If you think that the current equity in your home may exceed that amount – speak to your bankruptcy attorney to ensure you are protected. Saving your home in the bankruptcy is likely your number one priority, and with the protections provided under Arizona law, and some assistance from a knowledgeable bankruptcy attorney, it is a goal that can be accomplished.

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