Arizona Revised Statutes

Ariz. Rev. Stat. § 33-1126 (2026)

Money benefits or proceeds; exception

✓ current as of May 2026

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33-1126. Money benefits or proceeds; exception

(Caution: 1998 Prop. 105 applies)

A. The following property of a debtor is exempt from execution, attachment or sale on any process issued from any court:

1. All money received by or payable to a surviving spouse or child on the life of a deceased spouse, parent or legal guardian, of not more than $20,000.

2. The earnings of the minor child of a debtor or the proceeds of these earnings by reason of any liability of the debtor not contracted for the special benefit of the minor child.

3. All monies received by or payable to a person entitled to receive child support or spousal maintenance pursuant to a court order.

4. All money, proceeds or benefits of any kind to be paid in a lump sum or to be rendered on a periodic or installment basis to the insured or any beneficiary under any policy of health, accident or disability insurance or any similar plan or program of benefits in use by any employer, except for premiums payable on the policy or debt of the insured secured by a pledge, and except for collection of any debt or obligation for which the insured or beneficiary has been paid under the plan or policy and except for payment of amounts ordered for support of a person from proceeds and benefits furnished in lieu of earnings that would have been subject to that order and subject to any exemption applicable to earnings so replaced.

5. All money arising from any claim for the destruction of, or damage to, exempt property and all proceeds or benefits of any kind arising from fire or other insurance on any property exempt under this article.

6. The cash surrender value of life insurance policies where for a continuous unexpired period of two years the policies have been owned by a debtor. The policy shall have named as beneficiary the debtor's surviving spouse, child, parent, brother or sister. The policy may have named as beneficiary any other family member who is a dependent, in the proportion that the policy names any such beneficiary, except that, subject to the statute of limitations, the amount of any premium that is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1, with interest on that amount, is not exempt. The exemption provided by this paragraph does not apply to a claim for the payment of a debt of the insured or beneficiary that is secured by a pledge or assignment of the cash value of the insurance policy or the proceeds of the policy. For the purposes of this paragraph, "dependent" means a family member who is dependent on the insured debtor for not less than half support.

7. An annuity contract where for a continuous unexpired period of two years that contract has been owned by a debtor and has named as beneficiary the debtor, the debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, except that, subject to the statute of limitations, the amount of any premium, payment or deposit with respect to that contract is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1 is not exempt. The exemption provided by this paragraph does not apply to a claim for a payment of a debt of the annuitant or beneficiary that is secured by a pledge or assignment of the contract or its proceeds. For the purposes of this paragraph, "dependent" means a family member who is dependent on the debtor for not less than half support.

8. Any claim for damages recoverable by any person by reason of any levy on or sale under execution of that person's exempt personal property or by reason of the wrongful taking or detention of that property by any person, and the judgment recovered for damages.

9. A total of $5,000 held in a single account in any one financial institution as defined by section 6-101. The property declared exempt by this paragraph is not exempt from normal service charges assessed against the account by the financial institution at which the account is carried. The exemption prescribed in this paragraph shall be adjusted annually beginning on January 1, 2024 and thereafter on January 1 of each successive year by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100.

10. An interest in a college savings plan under section 529 of the internal revenue code of 1986, either as the owner or as the beneficiary. This does not include money contributed to the plan within two years before a debtor files for bankruptcy.

11. All federal or state personal income tax credits from any federal or state earned income tax credits or federal or state child tax credits. The amount of the exemption shall be the lesser of the total combined amount of federal and state tax refunds or the total combined amount of any federal or state earned income tax credits and any federal or state child tax credits claimed on the return.

B. Any money or other assets payable to a participant in or beneficiary of, or any interest of any participant or beneficiary in, a retirement plan under section 401(a), 403(a), 403(b), 408, 408A or 409 or a deferred compensation plan under section 457 of the United States internal revenue code of 1986, as amended, whether the beneficiary's interest arises by inheritance, designation, appointment or otherwise, is exempt from all claims of creditors of the beneficiary or participant. This subsection does not apply to any of the following:

1. An alternate payee under a qualified domestic relations order, as defined in section 414(p) of the United States internal revenue code of 1986, as amended. The interest of any and all alternate payees is exempt from any and all claims of any creditor of the alternate payee.

2. Amounts contributed within one hundred twenty days before a debtor files for bankruptcy.

3. The assets of bankruptcy proceedings filed before July 1, 1987.

C. Any person who is at least eighteen years of age, married or single, who resides within this state and who does not exercise the homestead exemption under article 1 of this chapter may claim as a personal property homestead exempt from all process prepaid rent, including security deposits as provided in section 33-1321, subsection A, for the claimant's residence, of not more than $2,000.

D. This section does not exempt property from orders that are the result of a judgment for arrearages of child support or for a child support debt.

Notes of Decisions

Cited in 26 cases (4 in the last 5 years), 1981–2024 · leading case: Siegel v. Swaine (In Re Siegel), 105 B.R. 556 (D. Ariz. 1989).

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Siegel v. Swaine (In Re Siegel), 105 B.R. 556 (D. Ariz. 1989). · cites it 31× “Appellants/Debtors Siegel and Hirsch (appellants or debtors) appeal from orders of the bankruptcy court in their respective Chapter 11 proceedings entering partial summary judgment in favor of plaintiffs/appellees (appellees or trustees) on grounds that A.R.S. § 33-1126(B), on…”

In Re Thiem, 443 B.R. 832 (Bankr. D. Ariz. 2011). · cites it 17× “Thiem’s half of the inherited funds. TV. ISSUES 1.”

Nowak v. Hummel (In Re Hummel), 440 B.R. 814 (9th Cir. BAP 2010). · cites it 14× “For Arizona residents, the exemption of certain insurance and annuity benefits or proceeds is governed by Ariz.Rev.Stat. § 33-1126 which provides in relevant part: A.”

In Re Hoffpauir, 125 B.R. 269 (Bankr. D. Ariz. 1990). · cites it 12× “Based upon the foregoing, the Court must conclude that on at least three separate grounds, the Arizona Statute concerning exemption of money benefits or proceeds (A.R.S. § 33-1126) does not include a personal injury award payable from an automobile liability policy of the…”

In re: Travis M. Hamlin & Brittany B. Hamlin, 465 B.R. 863 (9th Cir. BAP 2012). · cites it 4× “Trustee timely objected to Debtors’ claimed exemption, contending that inherited IRAs, unlike traditional IRAs funded by the debtor, are not exempt.”

Frazer, Ryan, Goldberg, Keyt & Lawless v. Smith, 907 P.2d 1384 (Ariz. Ct. App. 1995). · cites it 8× “00 pursuant to AR.S. § 33-1126. 1 Smith requested a hearing, alleging that the writ had frozen exempt monies.”

Neeley v. Century Fin. Co. of Arizona, 606 F. Supp. 1453 (D. Ariz. 1985). · cites it 6× “§ 3101 , and provisions in A.R.S. § 33-1126(7) to name a few) can be ascertained from the moment the account is seized.”

In re: Ian Nehemiah Gray & Cynthia Jackson Gray, 523 B.R. 170 (9th Cir. BAP 2014). · cites it 3× “00 of prepaid rent under Ariz. Rev. Stat. Ann. § 33-1126 (C). Moreover, Trustee did not challenge the legal sufficiency of the Amended Exemption.”

Shah v. Baloch, 418 P.3d 902 (Ariz. Ct. App. 2017). · cites it 6× “See A.R.S. § 33-1126(B) (2017) (exempting from attachment "money or other assets payable to a participant in or beneficiary of, or any interest of any participant or beneficiary in, a retirement plan [qualified under federal law]").”

In re Kara, 573 B.R. 696 (Bankr. W.D. Tex. 2017). “Ariz. Rev. Stat. Ann. § 33-1126 (2017). The trustee, however, objected to the exemption and argued that, based on the holding in Clark, inherited IRA’s are not exempt as a matter of law.”

Argonaut Ins. v. Lyons, 766 P.2d 619 (Ariz. Ct. App. 1988). · cites it 2× “We further note that A.R.S. § 33-1126(A) provides: The following property of a debtor shall be exempt from execution, attachment, or sale on any process issued from any court: 3.”

In re Todd, 585 B.R. 297 (Bankr. N.D.N.Y. 2018). “017 (a); Ariz. Rev. Stat. Ann. § 33-1126 (B) ; Fla.”

Show all 26 citing cases →

— Ariz. Rev. Stat. § 33-1126(7) — 2 cases

Neeley v. Century Fin. Co. of Arizona, 606 F. Supp. 1453 (D. Ariz. 1985). “§ 3101 , and provisions in A.R.S. § 33-1126(7) to name a few) can be ascertained from the moment the account is seized.”

Arizona Dep't of Econ. Sec. v. Arizona Bank, 650 P.2d 435 (Ariz. 1982).

— Ariz. Rev. Stat. § 33-1126(9) — 1 case

Protect Our Arizona v. hobbs/healthcare Rising (Ariz. 2023).

— Ariz. Rev. Stat. § 33-1126(A) — 3 cases

Argonaut Ins. v. Lyons, 766 P.2d 619 (Ariz. Ct. App. 1988). “We further note that A.R.S. § 33-1126(A) provides: The following property of a debtor shall be exempt from execution, attachment, or sale on any process issued from any court: 3.”

Frazer, Ryan, Goldberg, Keyt & Lawless v. Smith, 907 P.2d 1384 (Ariz. Ct. App. 1995). “00 pursuant to AR.S. § 33-1126. 1 Smith requested a hearing, alleging that the writ had frozen exempt monies.”

Kurchack v. Life Ins. Co. of North Am., 725 F. Supp. 2d 855 (D. Ariz. 2010).

— Ariz. Rev. Stat. § 33-1126(A)(1) — 1 case

Garcia v. Warfield (In re Garcia), 567 B.R. 168 (D. Ariz. 2017).

— Ariz. Rev. Stat. § 33-1126(A)(11) — 1 case

In Re: Erica Krystal Riggins, 544 P.3d 64 (Ariz. 2024).

— Ariz. Rev. Stat. § 33-1126(A)(3) — 1 case

In Re Hoffpauir, 125 B.R. 269 (Bankr. D. Ariz. 1990). “Based upon the foregoing, the Court must conclude that on at least three separate grounds, the Arizona Statute concerning exemption of money benefits or proceeds (A.R.S. § 33-1126) does not include a personal injury award payable from an automobile liability policy of the…”

— Ariz. Rev. Stat. § 33-1126(A)(4) — 1 case

Kurchack v. Life Ins. Co. of North Am., 725 F. Supp. 2d 855 (D. Ariz. 2010).

— Ariz. Rev. Stat. § 33-1126(A)(6) — 2 cases

Nowak v. Hummel (In Re Hummel), 440 B.R. 814 (9th Cir. BAP 2010). “For Arizona residents, the exemption of certain insurance and annuity benefits or proceeds is governed by Ariz.Rev.Stat. § 33-1126 which provides in relevant part: A.”

Tober v. Lang (In Re Tober), 688 F.3d 1160 (9th Cir. 2012).

— Ariz. Rev. Stat. § 33-1126(A)(7) — 2 cases

In re: Cynthia L. Messer (9th Cir. BAP 2012).

— Ariz. Rev. Stat. § 33-1126(A)(8) — 1 case

— Ariz. Rev. Stat. § 33-1126(A)(9) — 2 cases

Warfield v. Nance (D. Ariz. 2024).

In Re: Erica Krystal Riggins, 544 P.3d 64 (Ariz. 2024).

— Ariz. Rev. Stat. § 33-1126(A)(l) — 1 case

In Re Thiem, 443 B.R. 832 (Bankr. D. Ariz. 2011). “Thiem’s half of the inherited funds. TV. ISSUES 1.”

— Ariz. Rev. Stat. § 33-1126(B) — 6 cases

Siegel v. Swaine (In Re Siegel), 105 B.R. 556 (D. Ariz. 1989). “Appellants/Debtors Siegel and Hirsch (appellants or debtors) appeal from orders of the bankruptcy court in their respective Chapter 11 proceedings entering partial summary judgment in favor of plaintiffs/appellees (appellees or trustees) on grounds that A.R.S. § 33-1126(B), on…”

In Re Thiem, 443 B.R. 832 (Bankr. D. Ariz. 2011). “Thiem’s half of the inherited funds. TV. ISSUES 1.”

In re: Travis M. Hamlin & Brittany B. Hamlin, 465 B.R. 863 (9th Cir. BAP 2012). “Trustee timely objected to Debtors’ claimed exemption, contending that inherited IRAs, unlike traditional IRAs funded by the debtor, are not exempt.”

Shah v. Baloch, 418 P.3d 902 (Ariz. Ct. App. 2017). “See A.R.S. § 33-1126(B) (2017) (exempting from attachment "money or other assets payable to a participant in or beneficiary of, or any interest of any participant or beneficiary in, a retirement plan [qualified under federal law]").”

In Re the Est. of Fred N. Kirkes, 295 P.3d 432 (Ariz. 2013).

— Ariz. Rev. Stat. § 33-1126(C) — 1 case

In re: Ian Nehemiah Gray & Cynthia Jackson Gray, 523 B.R. 170 (9th Cir. BAP 2014). “00 of prepaid rent under Ariz. Rev. Stat. Ann. § 33-1126 (C). Moreover, Trustee did not challenge the legal sufficiency of the Amended Exemption.”

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