Bankruptcy

The Secret Chapter 7 Exemption in Arizona

By Joseph McDaniel, Esq.

It's so secret that you won't find it in any law books, or on the list of exemptions at the Bankruptcy website for the District of Arizona.

Okay, I fess. It's not exactly a secret, and it's not exactly an exemption.

But it is the reason for so many no-asset Chapter 7 bankruptcy cases in Arizona.

In general, it works this way: if you have a non-exempt asset, like one extra television set, ten years old, and black and white, with a 12 inch diagonal screen, and the replacement value for it is fifty dollars, and it's your ONLY non-exempt asset, you'll probably have a no-asset bankruptcy case.

Because trustees are humans, and humans have overhead, too.

I've heard on the grapevine that experienced bankruptcy trustees would rather not administer a case if the actual, factual total value of the nonexempt assets is less than eight hundred dollars or so.

And I'll check with a friendly trustee to see if I can get a sharper pencil on this one, when I get a Round Tuit.

And don't hold me to this one, or repeat it. It's a secret. And I may edit it out of existance at any moment.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on July 11, 2009 (boomark / email).