CHAPTER 7 BANKRUPTCY

Arizona Chapter 7 Bankruptcy is the most popular type of bankruptcy, and for good reason. It discharges unsecured debts, typically in a time frame of only 4-6 months. Those who file Chapter 7 are protected in the meantime from their creditors. Also, once debts are discharged, the former debtor can move forward with a fresh financial start.

If it sounds too good to be true, know there are strict income limits on who can file Chapter 7 bankruptcy. There are also limits on the value of your assets, known as exemptions. There are several other rules and restrictions that apply to those who file Chapter 7 bankruptcy, and the best way to navigate them is by hiring an experienced bankruptcy attorney.

Filing Chapter 7 Bankruptcy in Arizona

Debts Eliminated in an AZ Chapter 7 Bankruptcy

A wide variety of debts can be discharged in Chapter 7 bankruptcy, including: 

• Credit Card Debt

• Unsecured Personal Loans

• Taxes (that meet certain requirements)

• Repossession and Foreclosure Deficiencies

• Medical and Hospital Bills

• Some Civil Judgments

• Back Bills and Rent

Your 341 Meeting of Creditors

After your 341 Meeting of Creditors, you must complete a second credit counseling course. Thus, your attorney will file the course completion certificate with the court. Also, you have 60 days from your 341 Meeting of Creditors to complete the course, at which point your case will also be eligible for discharge. Therefore, you can expect to receive a discharge letter in the mail shortly after this date. At this point, you will have a clean financial slate and can begin taking steps to rebuild your credit.

Arizona Chapter 7 Bankruptcy Attorneys

Chapter 7 Bankruptcy clears away unsecured debts and allows you to move forward with a fresh start. If you are struggling with medical bills, credit cards, taxes, and more, Chapter 7 Bankruptcy may be a good option for you. You will even be protected from garnishments, repossessions, and other creditor collection methods while you are waiting for your filed bankruptcy to be completed.

Once your debts have been discharged, you can take steps with your financial clean slate to rebuild your credit. You may have an easier time getting lines of cre

dit, such as better credit cards and financing for a vehicle, after your bankruptcy if you had a low score before filing. Timely paymen

ts on your accounts will boost your credit score. Most of our clients see a dramatic increase in their score in the year after filing Chapter 7 bankruptcy.

Chapter 7 Bankruptcy Exemptions in Arizona

One of the drawbacks of filing Chapter 7 bankruptcy is that your assets must fall within your state’s bankruptcy exemptions, or your trustee may sell them to pay off your creditors. If you have an asset that exceeds your state exemptions that you want to keep, you  may need to file Chapter 13 instead. That’s why it’s important that you know your state exemptions before declaring Chapter 7 bankruptcy, as well as the approximate value of your possessions.

In Arizona, the homestead exemption is $150,000. However, that doesn’t mean that you can’t have a house that is worth more than $150,000- you just can’t have more than $150,000 equity in your home. The exemption for a motor vehicle in Arizona is $6,000. If you are married, you may either have one vehicle with at most $12,000 equity, or two vehicles with $6,000 equity each. There are other exemptions to protect all of your assets, like your computers, furniture, clothing, and more. If you need to file bankruptcy but have a valuable asset you’re concerned about, consult with a bankruptcy attorney to discuss the applicable exemptions.

Debts that Can Be Discharged in an Arizona Chapter 7 Bankruptcy

 Common debts that people file Chapter 7 Bankruptcy to discharge include:

• Medical bills

• Credit card debt

• Government benefit overpayments

• Repossession deficiencies

• Taxes

• Utility bills

• Back rent

• Unsecured personal loans

Chapter 7 Bankruptcy Court Filing Fees in Arizona

While it may seem counterintuitive to charge people who can’t pay their debts a fee, the bankruptcy courts typically require payment before your case can proceed. Also, the filing fee for a Chapter 7 bankruptcy in Arizona is $338. Therefore, unless you successfully apply for a waiver or to pay your fee in installments, this will be due on your date of filing. Plus, your filing fee does not include your attorney’s fees, and you aren’t entitled to a court-appointed attorney in a bankruptcy filing.

If you file pro se, or without an attorney, you will have a better chance of being approved for a fee waiver. Additionally, the bankruptcy court’s logic is that if you have the money to hire an attorney, you should have the money to pay court filing fees. Plus, if you aren’t comfortable filing bankruptcy on your own but don’t have the money for your court filing fees and attorney’s fees up front, you may be able to qualify for a Zero Down Bankruptcy payment plan.  Contact our $0 Down Arizona Bankruptcy Attorneys now for more information.

$0 Down Chapter 7 Bankruptcy in Arizona

Filing bankruptcy may sound unattainable due to its cost, but what if you could file bankruptcy for as little as $0 down? Our bankruptcy lawyers recognize that many of our clients won’t be able to pay until their case is filed, garnishments are stopped, and they no longer have to make payments on their debts. Also, your payment plan will be payable over 12 months at 0% interest. Also, you can even choose the day and frequency of your payment plan! Therefore, to see if you qualify for a Zero Down bankruptcy plan, schedule your free consultation with our firm today.

Getting the Chapter 7 Bankruptcy Process Started

The sooner you begin the bankruptcy process, the sooner you can move forward with your clean financial slate. Thus, the first step of the Chapter 7 bankruptcy process is to schedule your free consultation with an experienced AZ bankruptcy lawyer. Our Arizona bankruptcy office offers free consultations, as well as favorable payment plans starting as low as $0 down. To get started with your free consultation, call (480) 833-8000 today.