Bankruptcy Courts in Arizona
If you live in Arizona and are considering bankruptcy, your case will be handled in federal bankruptcy court. Arizona has one bankruptcy court district with four main divisions—Phoenix, Tucson, Yuma, and Flagstaff—each serving specific counties. You’ll file your case in the division that covers the county where you live or where your main property or business is located. Because filing in the correct division is important, it’s best to work with an experienced bankruptcy attorney who understands Arizona’s local filing procedures.
All Arizona bankruptcy cases follow the same federal bankruptcy laws, but each division also has its own local rules and procedures that supplement those laws. Because these requirements can vary and change over time, it’s best to work with an experienced bankruptcy attorney who understands the local practices in your area. Court decisions follow guidance from the U.S. Court of Appeals for the Ninth Circuit, which also covers California, Nevada, Oregon, Washington, and Alaska.
Where You File Depends on Where You Live
The U.S. Bankruptcy Court for the District of Arizona is divided into four main divisions, each serving specific counties across the state.
Phoenix Division
- Apache County
- Coconino County
- Gila County
- La Paz County
- Maricopa County
- Navajo County
- Yavapai County
Tucson Division
- Cochise County
- Graham County
- Greenlee County
- Pima County
- Pinal County
- Santa Cruz County
Yuma Division
- Yuma County
Flagstaff Division
- Coconino County (cases from northern Arizona may also be heard here)
If you’re uncertain which division serves your county, a qualified bankruptcy attorney can help determine where your case should be filed and ensure all forms are submitted correctly.
Bankruptcy Filing Trends in Arizona
The District of Arizona consistently ranks among the top bankruptcy-filing districts in the western United States, with several thousand new cases each year. The Phoenix Division handles the majority of filings, reflecting the state’s population center, while the Tucson Division manages a significant share of southern-Arizona cases.
Most cases are filed under Chapter 7, allowing individuals to discharge unsecured debts such as credit cards and medical bills. Chapter 13 filings remain common among homeowners using structured repayment plans to avoid foreclosure or vehicle repossession. These filings show how Arizonans use bankruptcy each year to stabilize their finances and regain control of their debt.
Arizona Exemptions — What You Can Keep
Filing for bankruptcy does not mean losing everything you own. Arizona law protects certain exempt property, which includes items you need to live and work. These protections prevent creditors from taking or selling essential belongings.
Arizona has opted out of the federal exemption system, so debtors must use Arizona state exemptions when filing in any division of the state.
Below are some of the most common exemptions:
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead – primary residence, condo, or mobile home plus land | $425,200 / $850,400 |
| Homestead sale proceeds – protected for 18 months after sale | Same limit |
| Household furniture, appliances, electronics | $16,000 / $32,000 |
| Food, fuel, and provisions for six months | Reasonable value |
| Clothing | $500 / $1,000 |
| Musical instruments | $400 / $800 |
| Wedding and engagement rings | $2,000 / $4,000 |
| Motor vehicle | $16,000 / $32,000 |
| Motor vehicle (if disabled) | $26,700 / $53,400 |
| Bank account funds | $5,400 / $10,800 |
| Annuities and life insurance cash value | 100% (except for child-support obligations) |
| Tools of trade, including digital assets like domain names | $5,000 / $10,000 |
| Farm equipment and animals | $2,500 / $5,000 |
| Retirement and pension plans | 100% protected |
| Wages | Greater of 90% or 60× the minimum hourly wage |
| Public benefits (Social Security, unemployment, workers’ comp) | 100% protected |
Because exemption amounts adjust periodically and certain protections (such as for homestead proceeds or retirement accounts) have specific conditions, you should consult a bankruptcy attorney before filing to make sure your assets are fully covered.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit counselling course from an approved provider. A second debtor-education course is required before discharge.
Means test. To qualify for Chapter 7, your household income must be below Arizona’s median or pass a means test comparing income and necessary expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you can’t pay in full, you can request to pay in installments or apply for a waiver.
Meeting of creditors. About a month after filing, you’ll attend a short “341 meeting.” This is not held before a judge. Instead, a bankruptcy trustee will ask a few questions to verify your identity and paperwork.
In Arizona, meetings are typically held virtually or in person depending on where your case is filed—Phoenix, Tucson, Yuma, or Flagstaff. Your attorney can confirm your assigned division and meeting schedule.
Local rules and forms. Each division has its own local rules, forms, and procedures, available on the court’s website. Following them carefully helps your case move forward without delay.
What This Means for You
Filing for bankruptcy in Arizona can provide a fresh financial start and stop most collection actions immediately. The automatic stay halts lawsuits, garnishments, repossessions, and foreclosures.
Most people who file keep their homes, cars, and personal property. Because Arizona requires use of state exemptions—and those laws include complex limits on homestead value, proceeds, and joint ownership—it’s best to speak with a bankruptcy attorney before filing.
An attorney can help you:
- Decide between Chapter 7 and Chapter 13
- Apply Arizona’s exemptions correctly
- Complete the required credit-counseling courses
- File all forms and meet local deadlines
With proper preparation and legal guidance, bankruptcy can help you regain control of your finances and work toward long-term stability.
