Arizona Bankruptcy Guide: How Often is it Allowed?
Unfortunately, financial troubles are not limited. You can go through serious financial problems and get into major debt and think that the worst is behind you. But then you can face the same troubles if you lose a job, get a divorce, become seriously ill or injured, or face other unexpected circumstances.
You may file for bankruptcy the first time to help you get the debt relief you need so you can get back on track. But when troubles arise again, you may wonder if you can file for bankruptcy again. Exactly how many times can you file for bankruptcy in Glendale, and how frequently can you file? Here’s what you need to know:
Chapter 7 Bankruptcy
In Arizona, you can file for Chapter 7 bankruptcy every six years. That time period starts from the date that you first filed for bankruptcy, not the date that it was discharged. That may seem like a long time, but six years goes by very quickly.
Even if the appropriate amount of time has passed, you will not automatically be able to file for Chapter 7 bankruptcy near Mesa. You still need to meet the eligibility requirements for filing, which include passing a means test that looks at your income and assets. If you make too much money or have too much in assets, you won’t be able to file. So, if you qualified for Chapter 7 previously but your income has gone up or you have accumulated more assets, you may not be able to qualify now.
There are no limits to what you can discharge in a subsequent Chapter 7 bankruptcy in Mesa. That means that if you qualify to file and you have $100,000 in credit card debt you want to discharge, you can discharge the entire amount. And you can continue doing so every six years so long as you continue to qualify to file. Of course, you may have a hard time getting credit to accumulate such a debt if you have that kind of track record, but you have no impediments to filing for bankruptcy in Glendale so long as you pass the means test and the appropriate amount of time has passed.
Chapter 13 Bankruptcy
There is no time limit in Arizona to when you can file for Chapter 13 bankruptcy after a previous filing. However, a Mesa Chapter 13 bankruptcy filing puts you on a three- to five-year debt repayment plan. So, you aren’t going to file for bankruptcy in the middle of a current bankruptcy repayment plan. That means you would file no sooner than three to five years apart.
Know also that continual filing for bankruptcy in Glendale may jeopardize your ability to be approved for a future Chapter 13 bankruptcy. The bankruptcy judge may suspect that you are abusing the bankruptcy system, so you may be asked to provide more information or to defend your assertions more vigorously.
The best thing you can do if you need to file for bankruptcy subsequent times is to work closely with an experienced bankruptcy attorney to get guidance on the right steps to take. Your Avondale bankruptcy attorney can help you understand the intricacies of the complex bankruptcy law and what you will need to do to improve your chances of successfully getting the type of debt relief you want. Your Arizona bankruptcy attorney will review the options with you and will help you create the strongest filing to improve your chances of success. Call a Tempe bankruptcy attorney as soon as you start considering bankruptcy as an option. You may not decide to ultimately file, but you can get that early advice to guide your decisions.
Glendale bankruptcy attorneys at My AZ Lawyers are ready to help you. Our Phoenix bankruptcy attorneys will help you understand how Chapter 7 or Chapter 13 bankruptcy may help you based on your current financial circumstances and your history. Our goal is to help you get the maximum debt relief possible under the law. We represent clients throughout the Phoenix area. Contact our bankruptcy law office today to schedule a consultation with a bankruptcy lawyer and to start learning about your options. We’re ready to help you whether it’s your first time filing for bankruptcy or your fifth.
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