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By
John Quigley, Legal Content Director · Reviewed against current A.R.S. · Last reviewed 2026-06-11
Bankruptcy is a federal process, but Arizona’s generous exemptions — especially its homestead exemption — heavily influence what you keep. Most Phoenix-area filers use Chapter 7 or Chapter 13.
What Arizona law says
A.R.S. § 33-1101 — Arizona’s homestead exemption, protecting a substantial amount of equity (up to $400,000, adjusted annually) in your primary residence.
A.R.S. § 33-1123 — Exemptions for household furnishings and goods up to statutory limits.
A.R.S. § 33-1125 — Exemptions for personal items such as clothing, a vehicle (within limits), and tools of a trade.
How bankruptcy cases work in Maricopa County
Cases are filed in the U.S. Bankruptcy Court for the District of Arizona (Phoenix), but Arizona has opted out of the federal exemptions — so state exemptions under Title 33 determine what property you protect.
Frequently asked questions
Chapter 7 or Chapter 13 — what’s the difference?
Chapter 7 discharges most unsecured debt by liquidating non-exempt assets; Chapter 13 reorganizes debt into a 3–5 year repayment plan, often to save a home.
Will I lose my house?
Arizona’s homestead exemption (A.R.S. § 33-1101) protects a large amount of home equity — many filers keep their homes.
Does bankruptcy stop collections?
Yes. Filing triggers an automatic stay that halts most collection actions, lawsuits, and garnishments immediately.
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Disclaimer: AZAttorneyFinder is an independent attorney directory, not a law firm, and does not provide legal advice. This page is general legal information about Arizona law, reviewed against the Arizona Revised Statutes (A.R.S.). It is not a substitute for advice from a licensed Arizona attorney about your specific situation. Statutes change — verify current law before relying on it.