Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Arizona, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Arizona has its own set of bankruptcy exemptions that residents are required to use; they cannot choose to use the federal bankruptcy exemptions instead. These exemptions include specific amounts of equity in a homestead, personal property, vehicles, retirement accounts, and other assets. The purpose of these exemptions is to allow individuals to retain enough property to get a fresh start after bankruptcy. It's important for those considering bankruptcy in Arizona to review the state's exemption laws carefully, as they will determine which assets can be protected. An attorney specializing in bankruptcy law can provide guidance on how to apply these exemptions in a bankruptcy case.