AZ New Law Affects Bankruptcy Protection For Homeowners

October 21, 2021

In May, Governor Doug Ducey signed House Bill (HB) 2617 into law, which will go into effect on Dec 31st and raises the amount of money protected from debt collectors to $250,000 from $150,000. While this new law may sound like good news for Arizona homeowners, HB 2617 favors debt collectors because the law makes it easier for them to place a lien on the debtor’s home if they owe money.

Essentially, the new law means that any outstanding debt owed can now be attached to home equity. Normally, even if a homeowner owes a creditor or creditors outstanding debts, the amount of equity a homeowner has accrued under the so-called homestead exemption. This exemption is supposed to protect Arizona homeowners from forcibly selling their homes. 

Before passage of the bill, “[a]ny person entitled to a homestead exemption ‘[held] the homestead property free and clear of the judgment lien.” However, with the passage of HB 2617, any homeowner who has lost a civil judgment will potentially no longer have equity protection. 

Moreover, HB 2617 not only applies to civil judgments announced on January 1, 2022 and onward, the new legislation is retroactive, covering past civil judgments, which a judge could thereby place towards a lien on the debtor’s home. 

Essentially, the new law enables creditors to collect on the debts owed and may do so by forcing the sale of the debtor’s home.

Need Help Qualifying For Bankruptcy Protection?

If you feel burdened by your current financial situation, talking with an experienced bankruptcy attorney in Arizona will help set your mind more at ease. 

A skilled bankruptcy attorney will guide you through various court proceedings to reduce or eliminate your debt, or to proceed forward with bankruptcy if necessary. The best place to find a bankruptcy attorney in Arizona is through Attorney at Law.

At AAL, we match you with the best bankruptcy attorneys in Arizona. Our partners have the resources, legal expertise, and experience to navigate you through the highly complex field of bankruptcy law. In addition to a proven track record, our partners also excel in client care. 

Don’t wait. Contact AAL today for a free, no-obligation consultation and begin your journey to financial independence.

Ask a Lawyer

Ask your own question and get advice from expert attorneys
Ask Question

Featured Bankruptcy Lawyers

Way Law Firm, PA

25 years in practice
Bankruptcy, Child Custody, Child Support, Criminal Defense, Divorce & Family Law
View Profile

Crumbley-Blackwell-Price Attorneys

25 years in practice
Adoption, Auto Accidents, Bankruptcy, Child Custody, Child Support
View Profile

Trigilio, Stephenson & Dattilo, PLL

22 years in practice
Auto Accidents, Bankruptcy, Personal Injury, Wrongful Death
View Profile

Richardson Law Firm P.C.

12 years in practice
Hair Relaxers Lawsuit, Mass Tort, Personal Injury, Rideshare Lawsuits, Tepezza Lawsuit
View Profile

Adam Rieth - Injury Attorney

10 years in practice
Auto Accidents, Brain Injury, Motorcycle Accidents, Personal Injury, Truck Accidents
View Profile

Vanguard Attorneys

12 years in practice
Auto Accidents, Motorcycle Accidents, Personal Injury, Truck Accidents, Wrongful Death
View Profile


Are you looking for an attorney? Do you have questions about a legal case you are facing? Contact us now and we will put you in touch with a lawyer for free.
Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram