{"id":3695,"date":"2021-06-22T09:29:37","date_gmt":"2021-06-22T09:29:37","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3695"},"modified":"2021-07-02T10:09:14","modified_gmt":"2021-07-02T10:09:14","slug":"debts-after-death-in-arizona","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/debts-after-death-in-arizona\/","title":{"rendered":"What Happens to Debts after Death in Arizona?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">When a person dies when he still has debts, his debts are not wiped out and his estate will still need to pay the lenders what the deceased owes. In case of<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/what-happens-when-a-debtor-dies-after-filing-bankruptcy-in-arizona\/\"> <span style=\"font-weight: 400;\">death of the debtor<\/span><\/a><span style=\"font-weight: 400;\">, the surviving spouse will be responsible but only for the deceased\u2019s community property debts or those debts acquired during the marriage of the parties. The spouse is made liable for the debts of the decedent because Arizona is a Community Property State. Check with a <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\"><span style=\"font-weight: 400;\">reliable bankruptcy lawyer in Phoenix<\/span><\/a><span style=\"font-weight: 400;\"> to further understand the state bankruptcy laws.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Get_Rid_of_the_Debts\"><\/span><span style=\"font-weight: 400;\">How to Get Rid of the Debts?<\/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-663cc52559bac\" 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-663cc52559bac\"  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\/debts-after-death-in-arizona\/#How_to_Get_Rid_of_the_Debts\" title=\"How to Get Rid of the Debts?\">How to Get Rid of the Debts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/debts-after-death-in-arizona\/#What_Bankruptcy_Options_Are_Available_in_Arizona\" title=\"What Bankruptcy Options Are Available in Arizona?\">What Bankruptcy Options Are Available in Arizona?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/debts-after-death-in-arizona\/#Talk_to_a_Bankruptcy_Attorney_in_Arizona\" title=\"Talk to a Bankruptcy Attorney in Arizona\">Talk to a Bankruptcy Attorney in Arizona<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">An available remedy for the spouse and relatives of the deceased is to<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/best-phoenix-bankruptcy-attorneys\/bankruptcy-filing-basics\/\"> <span style=\"font-weight: 400;\">declare bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> because according to the Bankruptcy Law, bankruptcies are legal proceedings wherein one can obtain <\/span><b>debt relief <\/b><span style=\"font-weight: 400;\">and have a fresh start. Filing bankruptcy enables <\/span><b>bankruptcy discharges<\/b><span style=\"font-weight: 400;\"> for most debts of the decedent such as:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Credit card debt<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Medical debt<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Tax debt<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Loan debt<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Attorney fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Student loans if the decedent experienced undue hardship<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_Bankruptcy_Options_Are_Available_in_Arizona\"><\/span><span style=\"font-weight: 400;\">What Bankruptcy Options Are Available in Arizona?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright wp-image-3697 size-medium\" title=\"Phoenix Bankruptcy Lawyers\" src=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-300x200.jpg\" alt=\"Phoenix Bankruptcy Lawyers\" width=\"300\" height=\"200\" srcset=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-200x133.jpg 200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-300x200.jpg 300w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-400x266.jpg 400w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-450x300.jpg 450w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona-600x400.jpg 600w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2021\/07\/Debts-after-Death-in-Arizona.jpg 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Dealing with debt collectors after the death of a loved one is both financially and emotionally draining hence, filing for bankruptcy may be beneficial to you since your bankruptcy petition gives an automatic stay or bankruptcy protection which stops:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Wage garnishment<\/span><\/li>\n<li><b>Car repossession<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Foreclosure<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Creditor harassment including <\/span><b>collection calls<\/b><span style=\"font-weight: 400;\"> harassment and other collection agencies<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are different<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/best-phoenix-bankruptcy-attorneys\/forms-of-bankruptcy\/\"> <b>types of bankruptcy<\/b><\/a> <span style=\"font-weight: 400;\">with the most common being<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/\"> <span style=\"font-weight: 400;\">Chapter 7<\/span><\/a><span style=\"font-weight: 400;\"> and<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/chapter-13-bankruptcy-phoenix-arizona\/\"> <span style=\"font-weight: 400;\">Chapter 13<\/span><\/a><span style=\"font-weight: 400;\">. However, Chapter 7, or liquidation bankruptcy does not have many options when a debtor dies or not because nonexempt properties outside the<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/bankruptcy-exemptions-phoenix\/\"> <span style=\"font-weight: 400;\">bankruptcy exemptions<\/span><\/a><span style=\"font-weight: 400;\"> are going to be sold off by a bankruptcy trustee. The proceeds of the liquidated assets are used to pay off the creditors. More people opt for Chapter 13 because it does not require you to liquidate most of your assets that often have significant sentimental value. However, if you have already filed a<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/chapter-13-bankruptcy-phoenix-arizona\/\"> <span style=\"font-weight: 400;\">Chapter 13 Bankruptcy or Repayment Plan<\/span><\/a><span style=\"font-weight: 400;\"> before the death of the spouse, you have more options including:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Continuing with the Chapter 13 proceeding \u2013 upon court order, you may continue the petition for bankruptcy if you can continue making payments and if the following scenarios apply to you:<\/span><\/li>\n<\/ol>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">You have many debt problems.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">You have a steady source of income.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Your inheritance from the decedent is not enough.<\/span><\/li>\n<\/ul>\n<ol start=\"2\">\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Modify the payment plan for a lower amount to be paid \u2013 if the death of your spouse took a toll on your monthly income wherein you cannot pay the debt repayment plan. However, secured debts like a mortgage payment must still be paid back or else, the creditor will repossess the property.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/convert-chapter-7\/\"><span style=\"font-weight: 400;\">Convert the bankruptcy case to Chapter 7<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 is an option available if you cannot afford to pay the existing rate of monthly payments provided your disposable income is below the median income required by the State of Arizona. However, you will need to first pass the<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/means-test\/\"> <span style=\"font-weight: 400;\">means test<\/span><\/a><span style=\"font-weight: 400;\"> and attend credit counseling before you can avail of this remedy<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Request a hardship discharge \u2013 if the death of your spouse makes you unable to repay the restructuring of debts made by Chapter 13. The following circumstances may enable you to qualify for a hardship discharge:<\/span><\/li>\n<\/ol>\n<ul>\n<li><span style=\"font-weight: 400;\">You are not at fault for failing to finish the debt management plan.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unsecured creditors have been paid what they are due under the Chapter 7 bankruptcy.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">You cannot modify the plan anymore.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Talk_to_a_Bankruptcy_Attorney_in_Arizona\"><\/span><span style=\"font-weight: 400;\">Talk to a Bankruptcy Attorney in Arizona<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Bankruptcy Code allows an individual to file for bankruptcy cases without the need of a bankruptcy lawyer but doing so is very risky because the laws change with the bankruptcy process. It can be very complicated if you do not have prior knowledge.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are considering bankruptcy but you are not yet certain if filing bankruptcy is the best choice, we, at Phoenix Fresh Start, will help you get to the right decision to resolve your financial problems and obtain a fresh start. Our<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/contact\/\"><span style=\"font-weight: 400;\"> bankruptcy lawyers in Arizona<\/span><\/a><span style=\"font-weight: 400;\"> are experienced in bankruptcy-related matters. Call us now for a free legal consultation!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a person dies when he still has debts, his debts are not wiped out and his estate will still need to pay the lenders what the deceased owes. In case of death of the debtor, the surviving spouse will be responsible but only for the deceased\u2019s community property debts or those debts acquired during the marriage of the parties. The spouse is made liable for the debts of the decedent because Arizona is a Community Property State. Check with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[1464],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3695"}],"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=3695"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3698"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}