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A Statute that Lives in Infamy! FREE THE ARIZONA EXEMPTIONS!

By Joseph McDaniel, Esq.

You know, a fish doesn't notice water very much; it's just there.

And an Arizona Bankruptcy Lawyer normally doesn't think much about the Arizona Opt-Out Statute, which prevents Arizona Residents from making use of the Federal Bankruptcy Exemptions at 11 USC 522.

But recently I re-examined the issue of Arizona Bankruptcy Exemptions after receiving a memo from a smart Arizona Bankruptcy Trustee who wants to make it hard for poor Arizona Debtors to retain their computers. And I'll write more about that.

But that memo got me to thinkin'.

There was no good reason to pass the Arizona Opt-Out Statute in the first place!

And there's a hell of a good reason to repeal that statute now!

We're in a depression, and Arizona is particularly hard-hit.

One thing our Arizona Legislature could do to show that it gave a thought to the plight of Arizona Residents during a depression is to repeal the Arizona Opt-Out Statute.

It wouldn't make bankruptcy cases fun, or easy, or nice; the 2005 Amendments to the Bankruptcy Code saw to that.

But if you're reading this, you know it's time!

So call your legislator. I'll certainly talk to mine.

It's time. Free the Bankruptcy Exemptions in Arizona!

Repeal the Opt-Out Statute! Give Arizona Debtors Freedom of Choice!

Just so you know the statute to eviscerate, here it is, in all its unnecessary ugliness:


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.


Now that I've noticed it, I realize what a dumb boondoggle this puppy really is!

So OPT IN, Arizona!

And do it now; it will slightly reduce the suffering of Arizona Bankruptcy Debtors!

p.s. this is an easy drafting challenge; just delete the word "not" from paragraph "B."

Full post as published by Arizona Bankruptcy Attorney Blog on November 07, 2010 (boomark / email).