A.R.S. tit. 33 ch. 8 — Arizona Revised Statutes Title 33 Chapter 8 — Homestead And Personal Property Exemption

33-1101. Homestead exemptions; persons entitled to hold homesteads; annual adjustment (Caution: 1998 Prop. 105 applies) A. Any person who is at least eighteen years of age, married or single, and who resides within this state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding $400,000 in value, any one of the following: 1. The person's interest in real property in one compact body on which exists a dwelling house in which the person resides. 2. The person's interest in one condominium or cooperative in which the person resides. 3. A mobile home, park model trailer, motor home, travel trailer, fifth wheel trailer, houseboat, manufactured home or other form of shelter in which the person resides plus the land on which that shelter is located. B. Only one homestead exemption may be held by a married couple or a single person under this section. The value as specified in this section refers to the equity of a single person or married couple. If a married couple lived together in a dwelling house, a condominium or cooperative or a form of shelter prescribed by subsection A, paragraph 3 of this section plus the land on which it is located and are then divorced, the total exemption that is allowed for that residence to either or both persons shall not exceed $400,000 in value. C. The homestead exemption, not exceeding the value provided for in subsection A of this section, as adjusted by subsection D of this section, automatically attaches to the person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property. The homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter. The homestead exemption does not attach to the person's interest in identifiable cash proceeds from refinancing the homestead property. Only one homestead exemption at a time may be held by a person under this section. D. The homestead exemption provided by this section shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100. E. For the purposes of determining the amount of equity in a homestead property that is sold or for determining whether the property owner is receiving cash back from refinancing the homestead property, the parties may rely on the valuation of the property in the final closing document disclosure that is used for that transaction. F. For any case filed under title 11, United States Code, the amount of the debtor's homestead exemption initially shall be determined as of the date the bankruptcy petition is filed. If the value in the homestead is less than or equal to the amount prescribed in subsection A of this section at the time of filing, including any increase prescribed by subsection D of this section, the homestead property is one hundred percent exempt and any increase in the value of the homestead during the pendency of the bankruptcy case is one hundred percent exempt without regard to whether the debtor's interest increases above the amount prescribed by subsection A of this section, including any increase prescribed by subsection D of this section. 33-1102. Exemption by operation of law; designation of multiple properties on creditor's request; recording A. A person who is entitled to a homestead exemption as prescribed by section 33-1101 holds that exemption by operation of law and no written claim or recording is required. If a person has more than one property interest to which a homestead exemption may reasonably apply, a creditor may require the person to designate which property, if any, is protected by the homestead exemption. The creditor shall demand the designation by sending a letter by certified mail, return receipt requested, to each address of the person which may reasonably be protected by the homestead exemption. The person shall designate the property by recording a homestead exemption in the office of the county recorder where the property is located or by sending the creditor a certified letter, return receipt requested, within thirty days of receiving the creditor's demand letter. If the person receives the creditor's letter and fails to respond as provided by this subsection, the person may only assert the homestead exemption by recording a claim in the office of the county recorder where the property is located. B. If the person is married, the homestead may be selected from the community property, the joint property or the separate property of the person. 33-1103. Homestead exemption; extent of exemption; exceptions A. Real property that is subject to the homestead exemption provided for in section 33-1101, subsection A is exempt from involuntary sale under a judgment or lien, except in connection with: 1. A consensual lien, including a mortgage or deed of trust, or contract of conveyance. 2. A lien for labor or materials claimed pursuant to section 33-981. 3. A lien for child support arrearages or spousal maintenance arrearages. An award of court ordered support is not a lien for the purposes of this paragraph unless one of the following applies: (a) An arrearage has been reduced to judgment. (b) A lien exists pursuant to section 25-516. (c) The court orders a specific security interest of the property for support. 4. A recorded civil judgment or other nonconsensual lien that is not otherwise prescribed in this subsection if the debtor's equity in the real property exceeds the homestead exemption under section 33-1101. B. A sale as described in subsection A of this section and not excepted by subsection A, paragraph 1, 2, 3 or 4 of this section is invalid and does not convey an interest in the homestead property, whether made under a judgment existing before or after the homestead is established. C. In a contempt proceeding brought to enforce payment of any form of child support or spousal maintenance, the court may consider the portion of property claimed as exempt pursuant to section 33-1101, subsection A, as a resource from which an obligor has the ability to pay. 33-1104. Abandonment of homestead; encumbrance of homestead A. A homestead may be abandoned by any of the following: 1. A declaration of abandonment or waiver. 2. A transfer of the homestead property by deed of conveyance or contract for conveyance. 3. A permanent removal of the claimant from the residence or the state. A claimant may remove from the homestead for up to two years without an abandonment or a waiver of the exemption. B. A declaration of abandonment or waiver shall be executed by the claimant and acknowledged. A declaration of abandonment or waiver is effective only from the time of its recording in the office of the county recorder in the county in which the homestead property is located. C. This article shall not be construed to repeal the provisions of section 25-214, subsection C, pertaining to the acquisition, conveyance or encumbrance of community property. D. Any recorded consensual lien, including a mortgage or deed of trust, encumbering homestead property shall not be subject to or affected by the homestead claim or exemption. E. Notwithstanding the provisions of subsection A, paragraph 2 of this section, a transfer of the homestead property by deed of conveyance or contract for conveyance under a trust, as defined in section 14-1201, in which the claimant retains the power to administer and revoke the trust shall not constitute an abandonment of the homestead. 33-1105. Sale by judgment creditor of property subject to homestead exemption A judgment creditor other than a mortgagee or beneficiary under a trust deed may elect to sell by judicial sale as specified in title 12 the property in which the judgment debtor has a homestead under section 33-1101, subsection A, provided that the judgment debtor's interest in the property shall exceed the sum of the judgment debtor's homestead plus the amount of any consensual liens on the property having priority to the judgment. A bid shall not be accepted by the officer in charge of a sale under this section which does not exceed the amount of the judgment debtor's homestead plus the amount of any consensual liens on the property having a priority to the judgment plus the costs of the sale allowable under title 12. After receipt of a sufficient bid, the officer shall sell the property. From the proceeds, the officer shall first pay the amount of the homestead to the judgment debtor plus the amount of any consensual liens on the property having a priority to the judgment and then pay the costs of the sale. The remaining proceeds shall be applied in accordance with the provisions of section 12-1562, subsection A. If the sale does not occur, either because of voluntary abandonment by the judgment creditor or because no sufficient bid is made, the judgment creditor may not charge any costs or attorney fees incurred in connection with the sale against the judgment debtor by addition to the judgment or otherwise. 33-1121. Definitions In this article, unless the context otherwise requires: 1. "Debtor" means an individual whether married or single utilizing property described in this article for personal, family or household use. 2. "Process" means execution, attachment, garnishment, replevin, sale or any final process issued from any court or any other judicial remedy provided for collection of debts. 33-1121.01. Availability of exemptions In the case of married persons, each spouse is entitled to the exemptions provided in this article, which may be combined with the other spouse's exemption in the same property or taken in different exempt property. 33-1122. Debtor's property not exempt from process The property declared exempt by this article is not exempt from process utilized to enforce a security interest in or pledge of such property, or to obtain possession of leased property. 33-1123. Household furniture, furnishings and appliances; annual adjustment (Caution: 1998 Prop. 105 applies) A. Household furniture and furnishings, household goods, including consumer electronic devices, and household appliances personally used by the debtor or a dependent of the debtor and not otherwise specifically prescribed in this chapter are exempt from process provided their aggregate fair market value does not exceed $15,000. B. The exemption provided by this section shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100. 33-1124. Food, fuel and provisions All food, fuel and provisions actually provided for the debtor's individual or family use for six months are exempt from process. 33-1125. Personal items (Caution: 1998 Prop. 105 applies) The following property of a debtor used primarily for personal, family or household purposes is exempt from process: 1. All wearing apparel of not more than a fair market value of five hundred dollars. 2. All musical instruments provided for the debtor's individual or family use of not more than an aggregate fair market value of four hundred dollars. 3. Horses, milk cows and poultry of not more than an aggregate fair market value of one thousand dollars. 4. All engagement and wedding rings of not more than an aggregate fair market value of two thousand dollars. 5. The library of a debtor, including books, manuals, published materials and personal documents of not more than an aggregate fair market value of two hundred fifty dollars. 6. One watch of not more than a fair market value of two hundred fifty dollars. 7. One typewriter, one computer, one bicycle, one sewing machine, a family bible or a lot in any burial ground of not more than an aggregate fair market value of two thousand dollars. 8. Equity in one motor vehicle of not more than $15,000. If the debtor or debtor's dependent has a physical disability, the equity in the motor vehicle shall not exceed $25,000. The exemption prescribed in this paragraph shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100. 9. Professionally prescribed prostheses for the debtor or a dependent of the debtor, including a wheelchair or motorized mobility device. 10. All firearms of not more than an aggregate fair market value of two thousand dollars. 11. All domestic animals or household pets. 33-1126. Money benefits or proceeds; exception (Caution: 1998 Prop. 105 applies) A. The following property of a debtor is exempt from execution, attachment or sale on any process issued from any court: 1. All money received by or payable to a surviving spouse or child on the life of a deceased spouse, parent or legal guardian, of not more than $20,000. 2. The earnings of the minor child of a debtor or the proceeds of these earnings by reason of any liability of the debtor not contracted for the special benefit of the minor child. 3. All monies received by or payable to a person entitled to receive child support or spousal maintenance pursuant to a court order. 4. All money, proceeds or benefits of any kind to be paid in a lump sum or to be rendered on a periodic or installment basis to the insured or any beneficiary under any policy of health, accident or disability insurance or any similar plan or program of benefits in use by any employer, except for premiums payable on the policy or debt of the insured secured by a pledge, and except for collection of any debt or obligation for which the insured or beneficiary has been paid under the plan or policy and except for payment of amounts ordered for support of a person from proceeds and benefits furnished in lieu of earnings that would have been subject to that order and subject to any exemption applicable to earnings so replaced. 5. All money arising from any claim for the destruction of, or damage to, exempt property and all proceeds or benefits of any kind arising from fire or other insurance on any property exempt under this article. 6. The cash surrender value of life insurance policies where for a continuous unexpired period of two years the policies have been owned by a debtor. The policy shall have named as beneficiary the debtor's surviving spouse, child, parent, brother or sister. The policy may have named as beneficiary any other family member who is a dependent, in the proportion that the policy names any such beneficiary, except that, subject to the statute of limitations, the amount of any premium that is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1, with interest on that amount, is not exempt. The exemption provided by this paragraph does not apply to a claim for the payment of a debt of the insured or beneficiary that is secured by a pledge or assignment of the cash value of the insurance policy or the proceeds of the policy. For the purposes of this paragraph, "dependent" means a family member who is dependent on the insured debtor for not less than half support. 7. An annuity contract where for a continuous unexpired period of two years that contract has been owned by a debtor and has named as beneficiary the debtor, the debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, except that, subject to the statute of limitations, the amount of any premium, payment or deposit with respect to that contract is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1 is not exempt. The exemption provided by this paragraph does not apply to a claim for a payment of a debt of the annuitant or beneficiary that is secured by a pledge or assignment of the contract or its proceeds. For the purposes of this paragraph, "dependent" means a family member who is dependent on the debtor for not less than half support. 8. Any claim for damages recoverable by any person by reason of any levy on or sale under execution of that person's exempt personal property or by reason of the wrongful taking or detention of that property by any person, and the judgment recovered for damages. 9. A total of $5,000 held in a single account in any one financial institution as defined by section 6-101. The property declared exempt by this paragraph is not exempt from normal service charges assessed against the account by the financial institution at which the account is carried. The exemption prescribed in this paragraph shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100. 10. An interest in a college savings plan under section 529 of the internal revenue code of 1986, either as the owner or as the beneficiary. This does not include money contributed to the plan within two years before a debtor files for bankruptcy. 11. All federal or state personal income tax credits from any federal or state earned income tax credits or federal or state child tax credits. The amount of the exemption shall be the lesser of the total combined amount of federal and state tax refunds or the total combined amount of any federal or state earned income tax credits and any federal or state child tax credits claimed on the return. B. Any money or other assets payable to a participant in or beneficiary of, or any interest of any participant or beneficiary in, a retirement plan under section 401(a), 403(a), 403(b), 408, 408A or 409 or a deferred compensation plan under section 457 of the United States internal revenue code of 1986, as amended, whether the beneficiary's interest arises by inheritance, designation, appointment or otherwise, is exempt from all claims of creditors of the beneficiary or participant. This subsection does not apply to any of the following: 1. An alternate payee under a qualified domestic relations order, as defined in section 414(p) of the United States internal revenue code of 1986, as amended. The interest of any and all alternate payees is exempt from any and all claims of any creditor of the alternate payee. 2. Amounts contributed within one hundred twenty days before a debtor files for bankruptcy. 3. The assets of bankruptcy proceedings filed before July 1, 1987. C. Any person who is at least eighteen years of age, married or single, who resides within this state and who does not exercise the homestead exemption under article 1 of this chapter may claim as a personal property homestead exempt from all process prepaid rent, including security deposits as provided in section 33-1321, subsection A, for the claimant's residence, of not more than $2,000. D. This section does not exempt property from orders that are the result of a judgment for arrearages of child support or for a child support debt. 33-1127. School equipment The library and philosophical and chemical or other apparatus belonging to a debtor and used for the instruction of youth in any university, college, seminary of learning, or school shall be exempt from execution, attachment or sale on any process issued from any court. 33-1128. Fire fighting equipment All fire engines, hooks and ladders, with the carts, trucks, carriages, hose, buckets, implements and apparatus appertaining thereto, and all furniture and uniforms of any fire company or department organized under any law of this state shall be exempt from execution, attachment or sale on any process issued from any court. 33-1129. Public property or property of a public character All court houses, jails, public offices, buildings, lots, grounds and personal property, the fixtures, furniture, books and papers and appurtenances belonging and pertaining to the jail and public offices belonging to any county or any city of this state and all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or city or dedicated by such town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this state shall be exempt from execution, attachment or sale on any process issued from any court. 33-1130. Tools and equipment used in a commercial activity, trade, business or profession The following tools and equipment of a debtor used in a commercial activity, trade, business or profession shall be exempt from process: 1. The tools, equipment, instruments and books, including telephone numbers, client or customer contact information, or marketing tools, such as websites, domain names or any other intangible work product, in the possession of a debtor or the spouse of a debtor primarily used in, and necessary to carry on or develop, the commercial activity, trade, business or profession of the debtor or the debtor's spouse, not in excess of an aggregate fair market value of five thousand dollars. For the purpose of this paragraph, tools do not include a motor vehicle primarily used by a debtor for personal, family or household purposes such as transportation to and from the debtor's place of employment. 2. Farm machinery, utensils, implements of husbandry, feed, seed, grain and animals not in excess of an aggregate value of two thousand five hundred dollars belonging to a debtor whose primary income is derived from farming. 3. All arms, uniforms and accoutrements required by law to be kept by a debtor. 33-1131. Definition; wages; salary; compensation (Caution: 1998 Prop. 105 applies) A. For the purposes of this section, "disposable earnings" means that remaining portion of a debtor's wages, salary or compensation for his personal services, including bonuses and commissions, or otherwise, and includes payments pursuant to a pension or retirement program or deferred compensation plan, after deducting from such earnings those amounts required by law to be withheld. B. Except as provided in subsection C, the maximum part of the disposable earnings of a debtor for any workweek that is subject to process may not exceed ten percent of disposable earnings for that week or the amount by which disposable earnings for that week exceed sixty times the applicable minimum hourly wage in effect at the time the earnings are payable, whichever is less. The applicable minimum hourly wage is the minimum wage required by federal, state or local law, whichever is highest. C. The exemptions provided in subsection B do not apply in the case of any order for the support of any person. In such case, one-half of the disposable earnings of a debtor for any pay period is exempt from process. D. The exemptions provided in this section do not apply in the case of any order of any court of bankruptcy under chapter XIII of the federal bankruptcy act or any debt due for any state or federal tax. 33-1132. Waiver of exemption rights void Notwithstanding any agreement to the contrary, a waiver of the exemption rights provided by this article shall be void and unenforceable, except as specifically provided in section 33-1122 and when done with notice. 33-1133. Other exemption laws A. Nothing in this article shall be construed to displace other provisions of law which afford additional or greater protection to a debtor's property. B. Notwithstanding subsection A, in accordance with 11 U.S.C. 522 (b), residents of this state are not entitled to the federal exemptions provided in 11 U.S.C. 522 (d). Nothing in this section affects the exemptions provided to residents of this state by the constitution or statutes of this state. 33-1151. Exemption from execution A. In addition to any other exemption provided by law, all real, personal, tangible or intangible property of a judgment debtor in this state is exempt from execution of a judgment in favor of another state for failure to pay that state's income tax on benefits received from a pension or other retirement plan to the extent those benefits were received while the judgment debtor was a resident of this state. The exempt property may include community, joint or separate property of the judgment debtor. B. If the judgment debtor dies or absconds and leaves a spouse or dependent any property that is exempt under this section, the property remains exempt to the spouse or dependent. C. A claim or judgment in favor of another state for failure to pay that state's income tax on benefits received from a pension or other retirement plan to the extent those benefits were received while the judgment debtor was a resident of this state is not a lien on any property in this state that is owned by a resident of this state. 33-1152. Recording; effect A. A person must claim the exemption under this article under oath and in writing that establishes that the person is a resident of this state and particularly designates the real and personal property for which the exemption is claimed. The claim shall be recorded in the office of the county recorder in the county where the property is located. B. From and after the date of recording the claim the property is exempt from process and from sale under a judgment described in section 33-1151 existing before or after recording the claim, and any such sale is void. 33-1153. Abandonment of exemption; maintenance of residency A. A claim of exemption under this article may be abandoned by a declaration or grant of abandonment or waiver or by permanent removal of the claimant from this state. A claimant may remove from this state for up to two years without an abandonment or waiver of the exemption. B. A declaration of abandonment, waiver or grant must be executed and acknowledged by the claimant and is effective from and after the date it is recorded in the office of the county recorder in which the claim of exemption was recorded.