What is the $214,000 homestead cap and does it affect my Arizona bankruptcy?

Even though Arizona's homestead exemption is approximately $437,600 for 2026, federal bankruptcy law imposes a cap in certain cases. Under 11 U.S.C. § 522(p), if you acquired your interest in the home within 1,215 days (about 3.3 years) before filing, your homestead exemption is capped at $214,000.

Equity rolled over from a previous principal residence in the same state generally doesn't count toward the cap. A separate cap under § 522(q) applies to debtors with certain securities fraud or criminal-conduct findings.

If you bought your Arizona home within the last few years and have substantial equity, the timing of your filing matters enormously — sometimes waiting until the 1,215 days pass protects hundreds of thousands of dollars.