How much home equity is protected in an Arizona bankruptcy?

Arizona's homestead exemption under A.R.S. § 33-1101 started at $400,000 when Proposition 209 took effect in December 2022, and it adjusts for inflation every January 1. For cases filed in 2026, the adjusted amount is approximately $437,600 of equity in your home. The exemption attaches automatically — you do not have to record anything to claim it.

Only one homestead exemption applies per person or married couple, and if you sell your home, the sale proceeds stay protected for 18 months. Because Arizona does not officially publish the adjusted figures each year, the exact amount should always be confirmed by a bankruptcy attorney before you file.

For most Arizona homeowners, this generous exemption means you can file Chapter 7 or Chapter 13 bankruptcy and keep your house, as long as you stay current on the mortgage.