Legal Question in Bankruptcy in Arizona

If i put all of my belongings in a trust three years ago, do i need to include it in the exemptions in my chapter 7?

Asked on 3/05/19, 12:35 pm

1 Answer from Attorneys

Chris Barski Barski Law Firm PLC

Personal property assets held in a trust are likely not entitled to an exemption. It is my understanding only the homestead exemption for real property is still protected if owned by a trust. This is expressly allowed by statute. ARS 33-1104(E). There is no comparable statute for personal property held in a trust that I am aware. You may want to transfer the personal property assets to yourself personally to apply the exemptions. Then re-transfer them back to the trust after the bankruptcy is complete.

Regardless, I would seek out some legal advise prior to filing to make sure you go through all the scenarios and risks. The advise given here is based on limited information and should not be relied on as comprehensive pre-bankruptcy planning advice.

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Answered on 3/05/19, 12:51 pm

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