What Property Is Covered
The law shields everyday household belongings from creditors, up to a fair market value cap. The statute covers household furniture, furnishings, household goods (including consumer electronic devices), and household appliances personally used by the debtor or a dependent. These exemptions protect the items families need to maintain a functioning home.
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.
A.R.S. § 33-1123(A)The key word is "aggregate." The law does not exempt each item up to $15,000. It exempts the total fair market value of all covered items combined. Your couch, television, refrigerator, washer, dryer, and other household items are added together. If the combined value stays under $15,000, creditors cannot touch them. Most households fall well within this limit, since used furniture and appliances typically have modest resale value.
Annual Cost-of-Living Adjustments
Starting January 1, 2024, this exemption amount adjusts each year to keep pace with inflation. The adjustment is based on the consumer price index for all urban consumers. It is measured from August to August of the preceding year. The new amount is rounded up to the nearest $100.
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.
A.R.S. § 33-1123(B)This built-in adjustment means the exemption keeps up with rising prices over time. As a result, the bankruptcy exemptions for household goods will gradually increase as inflation rises.
How This Affects Families
For families dealing with debt collection, this provision offers meaningful protection for the everyday items that make a household function. Combined with the homestead exemption for real property, these protections form an important baseline of asset security. A motor vehicle is covered by a separate exemption statute, so families should look at both this section and the vehicle exemption together when assessing their total protection.
If a dependent has a physical disability, related statutes may provide additional exemptions beyond the $15,000 household goods limit. Families should also know that food, fuel, and provisions for the household have their own separate protection. Several months worth of food and basic supplies are exempt from creditor claims under other sections of the same chapter. Insurance proceeds from the loss of exempted property may also be protected.
During a bankruptcy case, the aggregate value of protected household goods is measured at fair market value, not replacement cost. This typically works in the debtor's favor. Used furniture and appliances are worth far less than what it would cost to buy them new. For most families, the $15,000 cap provides more than enough room to protect the essential items in their home.