Understanding Arizona Chapter 7 Bankruptcy

Chapter 7 bankruptcy in Arizona is frequently referred to as a “liquidation” bankruptcy. Chapter 7 discharges or cancels most of your debt. While the majority of people who file for Arizona chapter 7 bankruptcy in Phoenix retain all of their property, your non-exempt property may be removed from you and sold to settle your debt.

You don’t have to worry. While very few people lose property in Arizona chapter 7 bankruptcy, having the competent Phoenix chapter 7 bankruptcy attorney can make a significant difference. Our bankruptcy attorneys in Phoenix are among the most experienced in the state. Give our law office a call if you have questions regarding a Phoenix chapter 7 bankruptcy proceeding. We will take the time to address all of your concerns, explore your bankruptcy choices, and provide you with legal advice.

 

Bankruptcy Codes for Chapter 7

chapter 7 bankruptcy eligibility

In contrast to other types of bankruptcy, filing for Chapter 7 bankruptcy does not necessitate the creation of a repayment plan. Chapter 7 bankruptcy is suitable for persons who have fallen behind on a significant amount of unsecured debts, such as medical bills, credit cards, and the like. In order to qualify for Chapter 7 bankruptcy in the state of Arizona, you must first complete specific eligibility standards, which include completing needed credit counseling and financial management classes. All of this contribute to setting you up for success and assisting you in managing your finances to avoid financial distress in the future.

Prior to filing for Chapter 7 bankruptcy, you must do a thorough analysis of your present financial situation, including an inventory of your assets and liabilities, in order to decide whether you qualify to file for bankruptcy. At The Phoenix Fresh Start Bankruptcy Attorneys, we can assist you in harnessing the power of the legal system and negotiating the most favorable financial outcomes possible for you.

 

Eligibility for Chapter 7 Bankruptcy

You must first meet a few eligibility requirements before you can file a Chapter 7 bankruptcy. Among the prerequisites are the following:

  • Credit counseling must be completed within 180 days after filing.
  • Having a lower income than the Arizona mean income
  • You must have resided in Arizona for at least two years prior to applying, or meet alternative residency requirements if you have been in Arizona for less than two years.
  • Must pass the means test and have a debt-to-income ratio review.

Your debt load will be matched to your income and used to assess your eligibility. Certain types of assets and income are excluded. Your individual circumstances will need to be assessed in order to determine your eligibility.

 

Pre-filing debtor bankruptcy education in Arizona

In order to file for bankruptcy in Arizona, your bankruptcy attorney will guide you on how to complete the pre-filing debtor education course, which is necessary in this state. The majority of the time, filing bankruptcy forms is done online or in the office of your Arizona bankruptcy attorney. When you have finished with your bankruptcy course, you will be given a certificate that must be included with your bankruptcy petition in the state of Arizona. This class is often quick and straightforward to complete.

 

Filing for Bankruptcy in the State of Arizona

In a chapter 7 bankruptcy case, the filing of a packet of schedules and documents, which includes the petition for chapter 7 bankruptcy in Arizona, is the first step. In most cases, you will file your bankruptcy papers in Arizona, which is close to where you live. A list of your creditors will be included with your bankruptcy petition as part of the filing process.

The bankruptcy court in Arizona will send out a notice of bankruptcy filing to your creditors shortly after you have filed your bankruptcy petition. In addition to the notice of bankruptcy filing in Arizona, the court will also send a notice of meeting of creditors in accordance with Section 341 of the bankruptcy code, which is available online.

It is possible that you will receive a deficiency notice from the Arizona bankruptcy court if you did not file all of the needed paperwork with your petition for chapter 7 bankruptcy in time. Generally, you will have 15 days to file the missing bankruptcy documents, or else you would face the possibility of having your bankruptcy case dismissed.

 

The cost of filing a Chapter 7 bankruptcy in Phoenix

When considering Chapter 7 bankruptcy, you need to make sure you know the costs of filing for bankruptcy protection. It’s not just the filing fee that you need to worry about. It’s the fact that you may need legal representation to ensure the bankruptcy is completed correctly.

There is a $338 filing fee for a Chapter 7 bankruptcy case. Legal representation will incur additional fees.

 

What about properties?

It is necessary for you to inform the bankruptcy court in Arizona about all of your assets, including both personal and real property so you can get an automatic stay. Exemptions from filing for bankruptcy in Arizona are extremely flexible.

In Arizona, almost everyone will be able to keep their property if they file for bankruptcy. Your Arizona bankruptcy attorney will assist you in determining and applying for the appropriate bankruptcy exemptions for your particular situation so you can avoid foreclosure. Please see our website for additional information about bankruptcy exemptions in Arizona and how they function.

 

Chapter 7 bankruptcy is not the only option available.

There are certain situations when people think, “I need to file bankruptcy.” If you are considering filing for Chapter 7 bankruptcy, there are numerous things you should be aware of, including the several alternatives that may be available to you. The following are some alternatives to filing for Chapter 7 bankruptcy: 

  • negotiating with creditors to decrease or combine your obligations; or 
  • delaying payment deadlines to give you more time to rebuild your finances. 

Credit counseling and audits are excellent ways to take a close look at your debts and commitments in order to identify more manageable solutions for repayment. 

Chapter 11 bankruptcy may be an option for you if you own a business or are a partner in a cooperative, as it may allow you to reorganize your debts without having to liquidate your assets. In addition to Chapter 7 bankruptcy, you can file for Chapter 13 bankruptcy, which permits you to preserve your possessions while renegotiating repayment terms with your creditors.

 

Get legal help. Call us today!

Before filing bankruptcy and your creditor is knocking on your door, it is usually a good idea to educate yourself on your available options. At The Phoenix Fresh Start Bankruptcy Attorneys, we can assist you in better understanding all of the bankruptcy rules and bankruptcy process. Our reliable bankruptcy attorneys can lay down which options will be most beneficial to you. Bankruptcy cases are no joke. If you are considering bankruptcy, please contact our law firm and hire a bankruptcy lawyer right away.