California filing but AZ exemptions?

[StartFresh]

Hi there. I am new here but already impressed by the amount and quality of information. I moved to California from Arizona on 6/1/09 and am now a permanent resident. I am about to file Chapter 7 because of a job loss and foreclosure on a home in AZ that was very underwater.
I have learned that I should file in CA but must use the exemptions of the state where I lived for the 6 months prior to 2 years ago = AZ.
Since I am not a current resident of AZ, can I opt to use the federal exemptions instead? These are much more appropriate for me since I have no homestead and would like to use the wildcard.
Thanks in advance for any information.

[MSbklawyer]

Hi there. I am new here but already impressed by the amount and quality of information. I moved to California from Arizona on 6/1/09 and am now a permanent resident. I am about to file Chapter 7 because of a job loss and foreclosure on a home in AZ that was very underwater.
I have learned that I should file in CA but must use the exemptions of the state where I lived for the 6 months prior to 2 years ago = AZ.
Since I am not a current resident of AZ, can I opt to use the federal exemptions instead? These are much more appropriate for me since I have no homestead and would like to use the wildcard.
Thanks in advance for any information.

It depends on whether Arizona exemptions are available to non-residents. I don't know the answer to that offhand. If they are, you go with the AZ exemptions. If not, you go with the federal exemptions. Practically speaking, if you have minimal assets, it won't make any material difference which ones you use -- everything will be exempt.

[StartFresh]

learned more

Thanks so much for the reply. I've been checking and found a case that sets a precedent. Bottom line, the AZ law does not allow "residents" to choose the federal exemption. So the ruling was that non-residents retain the choice. The benefit of filing using the federal exemption is only about $12,000 I get to keep - but right now that's a lot!

[JoeBankrupt33]

I found this case where a resident of Arkansas, who moved from Arizona, was able to use the federal exemptions. If you look at the quote from the Arizona Revised Statutes, it says that "residents...are not entitled to the federal exemptions," and says nothing about non-residents.

ARS 33-1133
B. Notwithstanding subsection A, in accordance with 11 U.S.C. 522 (b), residents of this state are not entitled to the federal exemptions provided in 11 U.S.C. 522 (d). Nothing in this section affects the exemptions provided to residents of this state by the constitution or statutes of this state.


http://www.arb.uscourts.gov/orders-r...barry/wood.pdf

[StartFresh]

Thanks, Joe. That was the one I saw too. The only concern I have ia that Arkansas is one of the 15 states that allows you to choose the federal exemption and California is not.