Frequently Asked Questions 2018-07-26T20:20:12+00:00

THE ARIZONA BANKRUPTCY PROCESS

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 prepare you for the 341 hearing and help you to 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?

Filing for bankruptcy in Arizona is a process that is somewhat complex. There is so many things to consider to ensure that filing for bankruptcy is a successful endeavor and the right thing for you and your financial goals. To know for sure which case filing that is truly best for your unique debt situation, contact an attorney to evaluate your debt and understand what you need to achieve with debt relief. 

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. Chapter 7 essentially wipes out dischargeable debt. Chapter 13 uses 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 the desired 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.

How does a Chapter 13 bankruptcy work?

Chapter 13 is an alternative bankruptcy to Chapter 7. Many clients who don’t qualify for Chapter 7, or have different debt needs than provided with Chapter 7 opt for Chapter 13.  Depending on the case, one chapter may be more beneficial for debt relief. My AZ Lawyers can help you determine which chapter will best help you meet your financial goals and get your out of debt.

Chapter 13 is a bankruptcy with a repayment plan. Debtors are allowed 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 that may not be discharged in a Chapter 7: student loans, child support, spousal support, some tax debts. Chapter 13 and the repayment plan may be the best option for debt relief for non-dischargeable 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 and 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 petition 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.