{"id":3355,"date":"2020-09-13T06:37:09","date_gmt":"2020-09-13T06:37:09","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3355"},"modified":"2022-04-13T13:02:03","modified_gmt":"2022-04-13T13:02:03","slug":"bankruptcy-chapter-7-and-13-arizona","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/","title":{"rendered":"Bankruptcy Chapter 7 and 13 Arizona"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The COVID 19 pandemic affected the lives of millions of Americans leading to a lot of people filing for bankruptcy to get a fresh start. The decision to file for bankruptcy is not easy. Getting the right information with the help of a bankruptcy attorney will greatly help in filing the suitable bankruptcy chapter.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_happens_when_you_file_for_bankruptcy\"><\/span><span style=\"font-weight: 400;\">What happens when you file for bankruptcy?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662d65a4cc408\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d65a4cc408\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/#What_happens_when_you_file_for_bankruptcy\" title=\"What happens when you file for bankruptcy?\">What happens when you file for bankruptcy?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/#Bankruptcy_Chapter_7\" title=\"Bankruptcy Chapter 7\">Bankruptcy Chapter 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/#Bankruptcy_Chapter_13\" title=\"Bankruptcy Chapter 13\">Bankruptcy Chapter 13<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/#What_is_the_difference_between_Chapter_7_and_Chapter_13_Bankruptcy\" title=\"What is the difference between Chapter 7 and Chapter 13 Bankruptcy?\">What is the difference between Chapter 7 and Chapter 13 Bankruptcy?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-13-arizona\/#Should_I_file_for_bankruptcy_in_Arizona\" title=\"Should I file for bankruptcy in Arizona?\">Should I file for bankruptcy in Arizona?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Bankruptcy is a proceeding that makes an insolvent person to be able to pay his or her debts. When you file bankruptcy, one of its effects is that it immediately stops creditors from collecting payment from you until your debts are sorted out by the bankruptcy court.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Filing bankruptcy also enables you to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wipeout most, if not all, of your debts<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Allow you to contest the claims of creditors if they committed fraud or are trying to collect more than what is due<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prevent the foreclosure of your home, repossession of your car or other property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Make the creditor return the repossessed items if there are any<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prevent the termination of utility services or restore them if they are already terminated<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Among the bankruptcy types, the most filed are either Chapter 7 or Chapter 13 bankruptcy. While the two might have some similarities, they are ultimately different and the requirements to be eligible in filing for them are also not the same.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bankruptcy_Chapter_7\"><\/span><i><span style=\"font-weight: 400;\">Bankruptcy Chapter 7<\/span><\/i><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright size-medium wp-image-3361\" src=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-300x300.jpg\" alt=\"Bankruptcy Chapter 7 and 13 Arizona\" width=\"300\" height=\"300\" srcset=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-66x66.jpg 66w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-100x100.jpg 100w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-150x150.jpg 150w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-200x200.jpg 200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13-300x300.jpg 300w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/Bankruptcy-Chapter-7-and-13.jpg 338w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>A Chapter 7 bankruptcy allows you to discharge your debts through liquidation. A trustee will sort out property that is not included in the exemptions and then sell them. The proceeds of the sale will be then used to pay the creditors. However, not all debts can be discharged in this kind of bankruptcy. Non-dischargeable debts include alimony, child support, fraudulent debts, student loans, taxes, and some items charged. Usually, the debtor has a large credit card debt and unsecured bills with limited resources to pay them. Often, Chapter 7 can eliminate these debts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Certain requirements must be met before you can be qualified for a <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/\">Chapter 7 bankruptcy<\/a>. One of them includes passing the means test. Means testing is done to determine your total income. If the result is less than the median income in Arizona, you automatically pass the test. However, if your income is higher than the median, you may need to surrender some assets to qualify. It is also required by the bankruptcy law to take credit counseling in an approved provider before filing for bankruptcy. Most of them are accessible online or through phone and will usually only take a couple of hours or even less.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bankruptcy_Chapter_13\"><\/span><i><span style=\"font-weight: 400;\">Bankruptcy Chapter 13<\/span><\/i><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/\">Chapter 13 bankruptcy<\/a> is a reorganization that allows a debtor to file a 3-5-year repayment plan to pay back most or all the debts to his or her creditor. You need to have a \u201cregular source of income\u201d along with disposable income to file for a payment plan. A Chapter 13 bankruptcy allows the debtor to keep his house, car, and valuable non-exempt property, pay back taxes, stop interest from accruing, and more. Usually, if you follow the repayment plan, the debts will be cleared in about 3 to 5 years. You will also need to take a means test to determine the amount you need to pay when you avail of this kind of bankruptcy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This kind of bankruptcy is usually availed by debtors who want to keep their secured assets and allow them to pay their debts in time consistent with the payment plan. If you have a valuable exempt property and want to keep it, Chapter 13 is a better choice.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_Chapter_7_and_Chapter_13_Bankruptcy\"><\/span><i><span style=\"font-weight: 400;\">What is the difference between Chapter 7 and Chapter 13 Bankruptcy?<\/span><\/i><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><\/td>\n<td><b>Chapter 7<\/b><\/td>\n<td><b>Chapter 13<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Bankruptcy Type<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Liquidation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Reorganization<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Restrictions\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Only individual persons and businesses can file<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disposable income must be within the median approved by the means test<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Only individuals can file<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unsecured debt must not be above $419,275 or Secured debts of $1,257,850<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>How long does it take for a discharge?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Usually 3 to 4 months<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Upon completion of all the payment plans<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What happens to your property?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The non-exempt property will be sold and liquidated to pay off the creditors<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The debtor will keep the property, but he will pay the creditors for an equal amount of the value of non-exempt assets<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Pros<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The debts are discharged quickly for the debtor to get a fresh start<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The debtor keeps his property, catch up on missed mortgage, and non-dischargeable priority debt payments<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Cons<\/b><\/td>\n<td><span style=\"font-weight: 400;\"><a href=\"\/nonexempt-property-in-bankruptcy\/\">Nonexempt property<\/a> will be sold, and it does not give a chance to catch up on missed payments to avoid foreclosure or repossession<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Must make payments for the duration of the payment plan consistently and may have to pay back some general unsecured debts<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Should_I_file_for_bankruptcy_in_Arizona\"><\/span><span style=\"font-weight: 400;\">Should I file for bankruptcy in Arizona?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Taking advantage of the protection the bankruptcy laws provide is nothing to be ashamed of for there is nothing wrong with seeking bankruptcy protection. The bankruptcy process might be confusing and complex. If you are considering filing for bankruptcy but are troubled with some questions, we, at <strong>Phoenix Fresh Start Bankruptcy Attorneys<\/strong>, are more than happy to help you. Our experienced <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\">bankruptcy attorneys<\/a> will assist you with matters tailored to your specific needs such as the restructuring of debts, representing you in court, opening all the options available to you, and many more! Call us now for a free legal consultation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The COVID 19 pandemic affected the lives of millions of Americans leading to a lot of people filing for bankruptcy to get a fresh start. The decision to file for bankruptcy is not easy. Getting the right information with the help of a bankruptcy attorney will greatly help in filing the suitable bankruptcy chapter.\u00a0 What happens when you file for bankruptcy? Bankruptcy is a proceeding that makes an insolvent person to be able to pay his or her debts. When [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3360,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3355"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=3355"}],"version-history":[{"count":1,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3355\/revisions"}],"predecessor-version":[{"id":4276,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3355\/revisions\/4276"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3360"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}