RV Owners In Arizona & The Changing Bankruptcy Exemptions

RV Owners In Arizona & The Changing Bankruptcy Exemptions

In Phoenix, Mary Drummond and her husband embarked on a nomadic journey in their motorhome, making every state their temporary home. However, a recent ruling by the Arizona State Supreme Court has unsettled the legal standing of their motorhome as a residence, sending shockwaves through not just the Drummonds, who filed for bankruptcy in 2022, but also all RV dwellers facing financial woes in Arizona.

The crux of the matter revolves around the homestead exemption, a legal shield safeguarding individuals from losing their primary residence during bankruptcy. While traditionally extending to conventional homes and mobile homes, the inclusion of a motorhome as a primary asset in the Drummonds’ bankruptcy filing brought the issue to light: does a motorhome qualify as a mobile home under Arizona law?

Close-up of a gavel on a table with two professionals discussing in the background, representing Gilbert Bankruptcy Lawyers specializing in bankruptcy exemptions

The Ruling Makes Bankruptcy Trustees Happy

Bankruptcy Trustee’s make money off of any assets that they receive or can find when an individual files for bankruptcy. Thus, this latest challenge to the supreme court came from one of the trustee’s attorneys who was hoping for a ruling such as the Drummond’s case, so the trustees will have an additional place to find assets and line their own pockets.

When filing for bankruptcy in Arizona, you will have to go in front of one of these trustees at a 341 (Meeting of Creditors). It is best if you have an attorney represent you in filing a chapter 7 bankruptcy or chapter 13 bankruptcy filing, as these same Trustees will be looking everywhere to find assets of yours and line their pockets. Do not give them the chance, hire an experienced Phoenix bankruptcy lawyer today.

The Court’s Decision

The Arizona Supreme Court’s verdict drew a clear line, denying motorhome and RV occupants the homestead protection afforded to those in traditional and mobile homes. This decision not only contradicts previous court rulings but also amplifies the vulnerability of those residing in motorized homes, effectively leaving them without the safety net they once relied on.

Justice Timmer’s dissent underscored a broader interpretation of the law, arguing that the presence of a motor should not invalidate the essence of a home. This dissent highlights the disparity created by the majority opinion and emphasizes the need for equitable treatment under the law, irrespective of dwelling type.

Looking ahead, the implications of this ruling extend beyond legal proceedings. With the rising popularity of motorhome and RV living, especially among retirees and those seeking affordability, urgent legislative action is needed to bridge the gap in legal protections. The Arizona Legislature must swiftly amend the law to ensure that all homeowners, regardless of their dwelling choice, are shielded from the threat of losing their homes during times of financial distress.

If you are considering filing bankruptcy, contact our Gilbert Bankruptcy Lawyers for a free consultation. We offer experienced bankruptcy attorneys, a zero down bankruptcy filing option, a bankruptcy by phone option, plus, we have filed thousands of successful bankruptcies filed in Phoenix, Mesa, Gilbert, and surrounding communities. Contact us at Gilbert Bankrupty Lawyers today.

Gilbert Bankruptcy Lawyers
Office: 480-448-9800
Email: info@myazlawyers.com
Website: https://gilbertbankruptcylawyers.com

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