Last updated: July 8, 2026
⚠️ This Is Information, Not Legal Advice
AZ Charged is a local Arizona business directory — we are not attorneys and nothing here is legal advice. Bankruptcy law changes, exemption amounts adjust every year, and your situation is unique. Always confirm current figures with a licensed Arizona bankruptcy attorney before making decisions. No lawyer paid to appear on this page.
What Does Bankruptcy Cost in Arizona?
Filing Chapter 7 bankruptcy in Arizona typically costs $1,500–$3,500 all-in — a federal court filing fee of a few hundred dollars plus attorney fees that generally run $1,000–$2,500 in the Phoenix metro. Chapter 13 costs more in attorney fees but they’re usually rolled into your 3–5 year repayment plan. Arizona’s homestead exemption now protects well over $400,000 of home equity, so most Phoenix filers keep their house, their car, and nearly everything they own.
If you’re staring down wage garnishment, creditor calls, or a mortgage you can’t catch up on, the two questions that matter are simple: what will bankruptcy actually cost me, and what do I get to keep? This guide answers both with current Arizona numbers — then covers how to pick the right Phoenix bankruptcy lawyer, because the attorney you choose matters more than almost any other decision in the process.
One thing worth knowing up front: a lot of the bankruptcy pages ranking on Google still quote Arizona’s old exemption amounts from before the law changed. If a law firm’s website tells you the homestead exemption is $150,000, that number has been wrong since 2022 — and it tells you something about how often that firm updates its information.
What Property Can You Keep? Arizona’s 2026 Bankruptcy Exemptions
Arizona has opted out of the federal exemption system, so if you’ve lived here at least 730 days (two years), you use Arizona’s exemptions — and since voters passed Proposition 209 in 2022, they’re among the most generous in the country. The headline: the homestead exemption has a $400,000 base that adjusts upward for inflation every January 1, putting it above $425,000 under the most recent adjustments.
| Asset | Arizona Exemption |
|---|---|
| Home equity (homestead) | $400,000 base, inflation-adjusted each Jan 1 (400k+ currently) |
| Vehicle equity | $15,000+ (adjusted); $25,000 if you or a dependent has a disability |
| Household goods & furnishings | $15,000 |
| Most retirement accounts (401k, IRA) | Generally fully protected while in the account |
| Tools of your trade | $5,000 |
Amounts are set by Arizona Revised Statutes Title 33 and several adjust annually — confirm the current-year figures with your attorney before filing, because filing date can change what’s protected. There’s a federal cap on the homestead if you bought your home within roughly the last 3 years and 4 months, which is one of many reasons DIY filings go sideways.
⚡ AZ INSIDER TIP
Phoenix-metro home values roughly doubled in the decade after 2015, which is exactly why Prop 209 mattered: under the old $150,000 cap, thousands of longtime homeowners in places like Ahwatukee, Gilbert, and Peoria had “too much” equity to file Chapter 7 safely. Under the current exemption, most do not. If you ruled out bankruptcy years ago because of your house, the math may have changed.
Chapter 7 vs. Chapter 13 in Arizona: Which One Fits?
Chapter 7 wipes out most unsecured debt in about 3–6 months; Chapter 13 restructures your debt into a 3–5 year repayment plan. Which one fits depends mostly on your income and what you’re trying to protect.
Chapter 7 — the “fresh start”
Discharges credit cards, medical bills, personal loans, and most other unsecured debt. To qualify, your household income generally needs to fall below Arizona’s median income for your family size — that’s the “means test.” The figures update twice a year, so check the current table on the U.S. Trustee Program’s means testing page. Above the median, you can still qualify after deducting allowed expenses. Most Arizona Chapter 7 cases are no-asset cases that discharge in roughly 120 days.
Chapter 13 — the “catch-up plan”
Better when you earn too much for Chapter 7, or when you’re behind on a mortgage or car loan and want to keep the asset. The repayment plan runs 3–5 years, stops foreclosure, and lets you cure missed payments over time. It costs more in attorney fees, but much of that is typically paid through the plan itself rather than up front.
The Real Cost of Filing Bankruptcy in Phoenix
Here’s the money question answered with actual numbers instead of “it depends”:
⚡ Typical Arizona Bankruptcy Costs (2026)
Two cost notes locals should know: if your income is below 150% of the federal poverty line, you can apply to have the Chapter 7 filing fee waived. And fees vary within the Valley — the same case is often quoted a few hundred dollars cheaper out east in Mesa than in central Phoenix. Verify current filing fees on the U.S. Bankruptcy Court, District of Arizona website — that’s the federal court in downtown Phoenix where Valley cases are handled.
How to Choose a Phoenix Bankruptcy Lawyer (and the Red Flags)
The best Phoenix bankruptcy attorneys share the same traits: deep Chapter 7 and 13 experience in the District of Arizona, flat transparent fees quoted in writing, fast emergency filing when a garnishment or foreclosure clock is ticking, and an actual attorney — not just staff — handling your case. Ask these in the free consultation almost every bankruptcy firm offers:
- Chapter 7 or 13 for my situation — and why? A good answer references your income vs. the means test and your specific assets, not a sales pitch.
- What’s your total fee and what does it include? Get it in writing, including the 341 meeting of creditors.
- How fast can you file in an emergency? The automatic stay stops garnishments and most collection the moment your case is filed — speed matters.
- Who actually handles my case? If the person you met at the consult disappears after you pay, that’s a mill.
⚠️ Red Flags
Be careful with heavy TV advertisers promising guaranteed outcomes (no honest lawyer can), quotes that change after you’ve paid a deposit, and non-attorney “document preparers” — Arizona limits what they can legally charge and they cannot give legal advice at all. Verify any attorney’s standing free at the State Bar of Arizona.
You can browse vetted legal professionals in our Arizona lawyers directory — every listing is hand-reviewed and nobody pays us to rank above anyone else.
Notable Phoenix-Area Bankruptcy Attorneys
Informational only — not endorsements, not paid placements, and not a complete list. Compare experience, fees, and fit in a consultation before hiring anyone.
Diane L. Drain
Practicing Arizona bankruptcy law since 1985 and a retired bankruptcy law professor, serving clients statewide from Phoenix. Known for consumer Chapter 7 and 13 work and extensive free educational resources.
Thomas H. Allen
Longtime Phoenix bankruptcy attorney handling Chapter 7 and Chapter 13 matters with a focus on asset protection strategy.
James F. Kahn
Established Phoenix consumer bankruptcy practice with years of Chapter 7 and 13 filings and pre-bankruptcy planning.
Neal H. Bookspan · Krystal M. Ahart · David Howard Cutler · Scott W. Hyder · Shawn L. Stone
Additional Phoenix-area attorneys with bankruptcy and debt-relief experience across individual and business matters. Confirm current practice focus and fees directly — attorney availability and specialties change.
Arizona Bankruptcy FAQ
How much does it cost to file bankruptcy in Arizona?
Most Chapter 7 cases in the Phoenix metro cost $1,500–$3,500 total: a court filing fee of a few hundred dollars, small mandatory course fees, and attorney fees of roughly $1,000–$2,500. Fee waivers exist for filers below 150% of the poverty line, and many firms offer payment plans.
Will I lose my house if I file bankruptcy in Arizona?
Usually not. Arizona’s homestead exemption protects a $400,000 base of home equity (inflation-adjusted upward each January 1), so most filers who stay current on their mortgage keep their home. If you’re behind on payments, Chapter 13 lets you catch up over 3–5 years.
Does bankruptcy stop wage garnishment in Arizona?
Yes. Filing triggers the automatic stay, a federal protection that immediately stops most garnishments, collection calls, lawsuits, and repossession efforts while your case is active.
What are the income limits for Chapter 7 in Arizona?
If your household income is at or below Arizona’s median income for your family size, you generally pass the means test and qualify. The dollar thresholds update every April and November — check the current table at justice.gov/ust/means-testing. Above the median, you may still qualify after deducting allowed expenses.
How long does bankruptcy take in Arizona?
Chapter 7 typically discharges in about 3–6 months (roughly 120 days for straightforward no-asset cases). Chapter 13 repayment plans last 3–5 years. Chapter 7 stays on your credit report up to 10 years, Chapter 13 up to 7 — though many people begin rebuilding credit much sooner.
Are You an Arizona Attorney Who Actually Answers the Phone?
AZ Charged hand-selects quality local professionals for our directory. Curated quality, zero pay-to-rank — submit your practice for review.
📞 Got a business to recommend or list? Call (888) 863-7421 — serving all of Arizona
