A Chapter 13 bankruptcy will remain on your credit report for 7 years, and a Chapter 7 bankruptcy will remain on your credit report for 10 years from the date of filing. You can send a dispute letter to the credit bureau if the bankruptcy is mistakenly left on your credit report after the applicable time period, or if there are any inaccuracies in how the bankruptcy was reported. You should avoid services that offer to get the bankruptcy removed from your credit for a fee.
How Long Will it Take to Rebuild My Credit?
This will depend on how your credit was before filing, and what steps you take to rebuild your credit after filing. If you had good credit before it will drop more significantly than if you had bad credit to begin with. After filing, opening new lines of credit will help raise your score. You can get a credit card, secured or otherwise. If you are financing your current vehicle and keep it in the bankruptcy, your lender won’t be required to report positive payment. However, if you get a new vehicle, making current payments will help you begin to rebuild your credit. We also offer 0 down post-filing payment plans which are reported and will similarly help your score rise.
Can I Own Anything After Bankruptcy?
Yes. Your attorney will be able to determine which of your assets are exempt and therefore protected during your bankruptcy. Each state’s exemptions are different, so be sure to provide your attorney with an accurate residential history. You will need to wait two years to get a home loan. However, you can get a new vehicle once your case is filed. If you expect to receive a sum of money in the future, like a tax return, personal injury settlement, or inheritance, inform your attorney so they can determine if it will be protected.
Who Can File a Chapter 7 Case?
The income limit to qualify for a Chapter 7 Bankruptcy depends on the family size. You should consult with an attorney to determine how many dependents you have in the context of a bankruptcy and if your income qualifies based on your family size. They will also be able to determine which forms of your income count towards these limits or if they are exempt
What is a “Skeleton Filing”?
A skeleton filing, also known as an emergency petition, is a briefer version of the petition with less information than a normal bankruptcy petition. The bankruptcy courts allow you 14 days to get the rest of your petition drafted and filed. Your case will be dismissed if you don’t submit the full petition within the deadline. This option is good for emergency situations such as wage garnishments and home foreclosures. The Automatic Stay will go into effect after the skeleton petition is filed and protect against those types of asset seizures. Your 341 Hearing will still be 30-45 days after the date of the skeleton filing.
Will I have to go to court?
Every kind of Arizona bankruptcy requires a court hearing called a 341 hearing. This is a necessary step in the bankruptcy process, but is a proceeding that you should not fear. Also called a meeting of the creditors, you will appear at the bankruptcy court with your attorney. The hearing is a record to officially document the facts of your bankruptcy filing, and it allows creditors the opportunity to question the debtor. In the majority of the cases, the 341 hearing is a formality that takes typically 10 minutes to complete the recorded part of the meeting.
As part of the legal representation offered by My AZ Lawyers, our bankruptcy legal team sees you through the entire bankruptcy process from beginning to end. An attorney will completely go over the entire process with you for the 341 hearing and help you understand what to expect. The attorney will be with you by your side at the meeting of the creditors.
What if I need to file bankruptcy, but don’t have the money for legal fees?
We see so many clients desperately trying to eliminate debt wanting a fresh start. The problem for some, however, is they are truly suffering from debt that causes them to miss payments. So the question is, if you don’t have money to pay debt and monthly bills, how can you afford a bankruptcy attorney to successfully file?
Answer: My AZ Lawyers offers $0 down bankruptcy program. Zero money down for legal fees, and zero money to start a bankruptcy. Also, zero money down to take control and action and get rid of your debt. Take advantage of the FREE consultation and FREE debt evaluation with an attorney at our firm. Ask about the $0 down program and our other payment options available. My AZ Lawyers believes in expert legal representation at an affordable price. Low Fee – Guarantee!
How do I know which bankruptcy to file? Chapter 7 or Chapter 13?
If bankruptcy is the best course of action to eliminate debt and end the stress and anxiety that accompanies overwhelming debt, you have important decisions to consider. Both Chapter 7 and 13 can end a wage garnishment, stop the creditor phone calls, get rid of debt, and give you a brand new financial beginning. A Chapter 7 will essentially wipe out any debt that is dischargeable. Chapter 13uses a structured payment plan to repay debt.
Is there a certain time of year that is better to file bankruptcy?
Timing could be important when filing bankruptcy. In order to get you back on track as soon as possible after a discharge, consult with an attorney to evaluate your debt and your specific situation. The right timing takes the entire debt snapshot into consideration. There are reasons for waiting to file, and there are reasons to file immediately. These reasons include the type of debt, the reason for needing to file, and what you desire to be the end result.
To make your bankruptcy case filing successful and to meet your debt relief needs, contact My AZ Lawyers for a FREE debt evaluation with an experienced Arizona bankruptcy law attorney.
BANKRUPTCY TYPES
What is Chapter 7 bankruptcy in Arizona?
Typically, residents of Arizona with staggering debt choose Chapter 7 to alleviate the debt. Basically, the goal of a Chapter 7 is to completely discharge some types of debt in a short period of time, not to repay the debt. Debt that is typically erased in a Chapter 7 includes credit card bills, medical bills, personal loans, or utility bills.
A means test will determine if you qualify for Chapter 7 bankruptcy. After filing a bankruptcy petition, a court appoints a trustee who oversees the case. Paperwork and forms are collected and filed, and a 341 hearing is scheduled. If the bankruptcy court and trustee approves the process, a discharge is granted.
Chapter 13 is a bankruptcy with a repayment plan. In some cases, creditors allow debtors to pay of some of the debt in a three to five year span of time. This bankruptcy allows clients to keep property. Chapter 13 could stop a foreclosure and allow you to devise a repayment schedule to pay back missed payments. There are types of debt which you may not discharge in a Chapter 7. For example, student loans, child support, spousal support, and some tax debts. Chapter 13 and the repayment plan may be the best option for debt relief where you cannot discharge debt.
EFFECTS OF FILING BANKRUPTCY
What will happen to my credit score if I file for bankruptcy?
Many clients worry what will happen to their credit with a bankruptcy on their record. What people do not realize, is that bankruptcy may actually be the best thing for your financial record after time. If you have debt, and that debt is causing you to miss mortgage payments, car loans, or monthly credit card payments, you are creating a poor credit score. Filing for bankruptcy not relieves the stress and burden of big-time debt short term, but also is a step in getting your financial goals back on track. If you are indeed suffering from overwhelming debt, credit score may not be your highest priority. No doubt your credit rating takes a hit after filing bankruptcy, but a discharged bankruptcy essentially resets your credit score.
My AZ Lawyers offers a program after a bankruptcy discharge that helps and teaches clients how to take action. It also helps and teaches clients the proper steps to immediately repair their credit and improve their credit score. Clients rebuild credit scores quickly by showing positive credit activity. Now that you are out of debt, you can make regular monthly house, auto loan, and credit card payments. Good practices and positive changes will ensure that your credit score improves.
Do creditors have to stop calling me if I file for bankruptcy?
Once a bankruptcy is filed, creditors must stop any collection activity. Any means of communication in order to collect a debt must end. A lawsuit against you may not be filed.
Will I lose my car or home if I file for bankruptcy?
Arizona bankruptcy law provides protection of assets. The Arizona asset exemptions are outlined in individual bankruptcy filings. These exemptions are allowed because they help the goal of getting out of debt. If everything is taken away from a bankruptcy filer, their financial and debt problems may likely not go away. Some general asset exemptions include a modest home, reliable transportation, necessary furniture and appliances, reasonable personal items, and tools necessary for work. The Arizona bankruptcy code provides relief to debtors in need of debt relief in order to help them get back on their feet and get back on track as soon as possible.
Because everyone has a different case, contact My AZ Lawyers. Schedule a FREE CONSULTATION to visit with an attorney to discuss your concerns and questions about filing for bankruptcy and keeping your property.
How can I stop a wage garnishment?
In Arizona, a wage garnishments must stop when a bankruptcy petition is filed. A bankruptcy protection called the automatic stay is put into effect immediately after filing bankruptcy. The automatic stay stops creditor collections such as wage garnishment, foreclosure, and phone calls.
