Most people who file bankruptcy in Arizona are able to keep their homes. In Arizona, the homestead exemption is either $150,000 or a slightly lesser amount if you recently purchased the home (call us for details). However, if you are in arrears on your payments on the day we file your bankruptcy case, the creditor will most likely take swift action to obtain the Arizona bankruptcy court’s permission to proceed with a foreclosure. On the other hand, most people who are not behind on payments on the date their case is filed and who continue to make timely payments are rarely in trouble of losing their homes in Arizona if they reside in them on the date the bankruptcy case is filed and have equity less than the relevant limits stated above. Notably, if you are one of those people whose income exceeds the median for your household size, you will have to take the means test unless you fall within one of the few exceptions. Having a mortgage payment will help you to pass the means test, because you will get to deduct the full cost of the mortgage in the means test calculations.