State Exemptions Take Priority
Federal bankruptcy law gives states the option to let their residents choose between federal exemptions and state exemptions, or to require the use of state exemptions only. Arizona chose the second path. If you file for bankruptcy in Arizona, you use Arizona's exemption laws, not the federal exemption list.
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.
A.R.S. § 33-1133(B)This means Arizona's own exemption framework, including the homestead exemption, personal property protections, and wage garnishment limits, is the governing set of rules. The federal exemption list, which includes different dollar amounts and different categories of protected property, simply does not apply.
Other Protections Still Apply
The first part of this statute makes clear that the personal property exemptions in this article do not override other Arizona laws that may offer even greater protection. The Arizona Constitution, for example, provides a homestead exemption that is separate from and in addition to the statutory exemptions in this chapter.
Nothing in this article shall be construed to displace other provisions of law which afford additional or greater protection to a debtor's property.
A.R.S. § 33-1133(A)For families working on an estate plan, this distinction matters. Understanding which exemptions apply in Arizona, and that the federal bankruptcy exemptions are off the table, helps clarify what assets are genuinely protected and what additional planning steps may be worth considering.
