How to File for Bankruptcy in Arizona: Steps, Exemptions, and Costs

To file for bankruptcy in Arizona, you complete a pre-filing credit counseling session, take the means test to determine whether you qualify for Chapter 7 or must use Chapter 13, prepare a petition with full schedules of your debts, property, income, and expenses, claim Arizona’s property exemptions, and submit everything to the U.S. Bankruptcy Court for the District of Arizona. The court has offices in Phoenix, Tucson, and Yuma, with additional hearing locations in Flagstaff and Bullhead City.¹ After filing, you attend a meeting of creditors, complete a second required course, and wait for the discharge order that eliminates qualifying debts.

Each step has its own paperwork and timing rules, and skipping any of them can get your case dismissed. Here is what the process looks like from start to finish.

Step 1: Complete Credit Counseling

You have to finish a credit counseling session with an agency approved by the U.S. Trustee Program before you file. The session must take place within 180 days before your filing date.² It covers alternatives to bankruptcy, such as debt management plans, and generally costs between $10 and $50. The list of approved agencies is on the U.S. Trustee’s website.

When you finish, the agency gives you a certificate. That certificate has to be filed with your bankruptcy paperwork. Missing it, or using one from a session more than 180 days old, will cause the court to dismiss your case.

Step 2: Take the Means Test to Choose a Chapter

The means test decides which chapter you can use. It compares your household’s average monthly income over the six months before filing to Arizona’s median income for a household of your size. If your income is below the median, you generally qualify for Chapter 7, which sells non-exempt property to pay creditors and discharges most remaining debt in a matter of months.

If your income is above the median, a second calculation subtracts allowed expenses. Enough disposable income left over pushes you into Chapter 13 instead, which puts you on a court-supervised repayment plan. That plan runs three years for below-median incomes and five years for above-median incomes.³

Step 3: Prepare Your Documents and Schedules

Filing takes a lot of paperwork. Before you start on the official forms, pull together:

Federal tax returns — at least two years for Chapter 7, typically four years for Chapter 13.
Pay stubs covering the six months before your filing date.
A complete list of creditors with names, addresses, account numbers, and balances for every secured and unsecured debt.
An inventory of everything you own, from real estate and vehicles to bank accounts and household items, with estimated current values.
A monthly budget showing your current income and expenses.

The core form is the Voluntary Petition for Individuals Filing for Bankruptcy. Alongside it, you file Schedules A/B through J (property, exemptions, secured and unsecured creditors, co-debtors, contracts, income, expenses) and a Statement of Financial Affairs that tracks income history, recent property transfers, gifts, and legal actions over the prior two years.⁴ The forms are on the U.S. Courts website.

Values are reported at fair market value as of the filing date, not what you paid originally. For used household items, clothing, and electronics, that number is usually far below purchase price. Accuracy is not optional. Any debt you leave off your schedules may not be discharged, and unusual transfers or payments in the Statement of Financial Affairs can draw the trustee’s attention.

Step 4: Claim Arizona’s Property Exemptions

Arizona is an opt-out state, so you use Arizona’s exemptions rather than the federal set. Property you don’t properly exempt on Schedule C can be sold by the trustee to pay creditors.

Homestead

Under ARS § 33-1101, up to $400,000 in equity in your primary residence is protected. The amount is adjusted each January for cost-of-living increases tied to the Consumer Price Index, so the exact figure may run slightly higher by 2026.⁵ Only one homestead exemption is allowed per married couple or single person. If your equity at filing sits within the limit, the home is fully protected, and any increase in value during the case stays exempt too.

Vehicle and Personal Property

ARS § 33-1125 protects a range of personal items:⁶

Up to $15,000 in equity in one motor vehicle, or up to $25,000 if you or a dependent has a physical disability. This amount also adjusts annually.
Up to $500 in clothing.
Up to $2,000 combined in engagement and wedding rings.
Up to $2,000 combined in firearms.
Up to $2,000 combined for a computer, bicycle, sewing machine, or family bible.
Up to $250 in books and personal documents.

Additional exemptions for household furnishings and appliances are found in ARS §§ 33-1123, 33-1124, and 33-1130.

Bank Accounts

ARS § 33-1126 protects up to $5,000 in a single account at any one financial institution. This amount also adjusts annually for cost-of-living increases starting in January 2024.⁷

Step 5: File the Petition

Completed paperwork goes to the U.S. Bankruptcy Court for the District of Arizona. Attorneys file electronically. If you’re representing yourself, you generally file paper copies at the clerk’s office in Phoenix, Tucson, or Yuma.¹

The filing fee is $338 for Chapter 7 and $313 for Chapter 13.⁸ If you can’t pay in one lump, you can apply to pay in installments. If your household income falls below 150% of the federal poverty line, you can apply for a complete fee waiver. Miss an installment after the court approves one, though, and your case can be dismissed.

Step 6: The Automatic Stay Takes Effect

The moment the clerk processes your petition, the automatic stay kicks in. It stops most collection actions against you: wage garnishments, foreclosure sales, repossessions, lawsuits, and collection calls.⁹ The stay stays in place through the case unless a creditor asks the court for relief. A mortgage company, for example, may seek permission to proceed with foreclosure if you’re not making payments.

The stay does not stop collection of child support. Wage withholding for support, tax refund intercepts for past-due support, and license suspensions for non-payment all continue.

Step 7: Attend the Meeting of Creditors

Roughly 20 to 40 days after filing, you attend a Meeting of Creditors, often called the 341 meeting. Bring a valid government-issued photo ID and proof of your Social Security number. The trustee verifies your identity and then asks you questions under oath about your financial documents and history.¹⁰ Creditors can attend and ask questions but rarely do in straightforward consumer cases.

The trustee reviews your schedules and looks for non-exempt assets that could be sold. In Chapter 13, the trustee also collects and distributes your monthly plan payments. Skipping the meeting without prior arrangements will lead the trustee to move for dismissal.

Step 8: Finish the Debtor Education Course and Get Your Discharge

After the 341 meeting, you have to complete a second course focused on budgeting and financial management. In Chapter 7, proof of completion is due within 60 days after the first date set for the meeting of creditors. In Chapter 13, proof is due no later than when you make your final plan payment.¹¹ Skip this certificate and the court will close your case without granting a discharge.

In Chapter 7, the discharge order usually issues about 60 days after the meeting of creditors, assuming no objections. The discharge releases you from personal liability on most qualifying debts, and creditors can no longer try to collect on them.¹⁰ In Chapter 13, discharge comes only after you complete the full three- or five-year repayment plan.

Chapter 13 filers have one additional step: a confirmation hearing. The bankruptcy judge reviews the proposed repayment plan and considers objections from the trustee or creditors, who may argue that payments are too low or that a claim is being treated wrongly. If no one objects, the judge may approve the plan after a brief review. If objections can’t be resolved, the judge decides, sometimes after a follow-up hearing, and you may need to file a modified plan. Once the plan is confirmed, you start making monthly payments to the trustee.³

Debts Bankruptcy Will Not Wipe Out

Not every debt disappears in bankruptcy. Federal law lists categories that survive a discharge regardless of chapter:¹²

Child support and alimony. In Chapter 13, your plan must repay 100% of past-due support, and you must stay current on ongoing payments to receive a discharge of other debts.
Most federal and private student loans, unless you can prove undue hardship.
Recent income taxes, generally those for returns due within three years before filing or assessed within 240 days before filing. Taxes tied to fraudulent returns or willful evasion are never dischargeable.¹³
Debts from fraud. This includes luxury purchases over $500 within 90 days of filing and cash advances over $750 within 70 days of filing, both presumed non-dischargeable.
Court-ordered criminal fines and restitution.
Debts from willful injury to another person or their property.
Any debt you don’t list on your schedules, if the creditor didn’t learn about the case in time to file a claim.

Common Mistakes That Get Cases Dismissed

Actions before you file can undo the case after you file. Paying back a family member or friend in the months before filing can be reversed by the trustee: for regular creditors, the look-back is 90 days; for “insiders” like family members, business partners, or close associates, it extends to one year.¹⁴ The trustee can sue to recover the money and redistribute it to all creditors equally.

Running up new debt just before filing is another trap. Luxury purchases over $500 within 90 days and cash advances over $750 within 70 days are presumed non-dischargeable, and larger patterns of new debt when you know you’re about to file can be treated as fraud.

Procedural failures also sink cases:

Missing forms, schedules, or supporting documents the trustee requests.
Skipping the 341 meeting without prior arrangements.
Not filing the debtor education certificate.
Missing an installment payment on your filing fee.
Falling behind on Chapter 13 plan payments, which is the most common cause of Chapter 13 dismissal.

Total Cost of Filing in Arizona

The court filing fee — $338 for Chapter 7 or $313 for Chapter 13 — is only part of the total.⁸ You also pay for the two mandatory courses, which typically run $10 to $50 each, often with reduced fees or waivers for low-income filers.

Attorney fees vary widely by location and case complexity. Chapter 7 attorney fees commonly range from several hundred to a few thousand dollars. Chapter 13 fees tend to be higher because the attorney’s work continues throughout the repayment plan, and those fees can sometimes be paid through the plan itself. Filing without an attorney (pro se) eliminates this cost but raises the risk of errors that could dismiss your case or cost you property you could have protected.

How Filing Affects Your Credit

A Chapter 7 bankruptcy stays on your credit report for ten years from the filing date. A Chapter 13 filing stays for seven years from the filing date. Getting new credit, renting an apartment, or passing employment background checks can be harder during that window, though the effect fades as you rebuild.

For home buyers, an FHA-insured mortgage generally requires a two-year waiting period after a Chapter 7 discharge. Chapter 13 filers may qualify for an FHA loan before completing the plan, provided at least 12 months of on-time plan payments have been made and the court approves the purchase. Many filers see meaningful score improvement within two to three years after discharge through steps like secured credit cards and consistent on-time payments.

1
United States Bankruptcy Court. District of Arizona – United States Bankruptcy Court
2
United States Bankruptcy Court District of Columbia. Notice to All Debtors About Prepetition Credit Counseling Requirement
3
United States Courts. Chapter 13 – Bankruptcy Basics
4
U.S. Courts. Instructions – Bankruptcy Forms for Individuals
5
Arizona Legislature. Arizona Revised Statutes 33-1101 – Homestead Exemptions; Persons Entitled To Hold Homesteads; Annual Adjustment
6
Arizona Legislature. Arizona Revised Statutes 33-1125 – Personal Items
7
Arizona Legislature. Arizona Revised Statutes 33-1126 – Money Benefits or Proceeds; Exception
8
United States Bankruptcy Court. Filing Fees
9
Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay
10
United States Courts. Chapter 7 – Bankruptcy Basics
11
United States Bankruptcy Court Northern District of New York. eFinCert – eFile Certificate of Debtor Education
12
Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
13
Internal Revenue Service. Publication 908 – Bankruptcy Tax Guide
14
Office of the Law Revision Counsel. 11 USC 547 – Preferences