Phoenix Chapter 7 Bankruptcy Attorneys
Our Arizona Debt Relief Firm Can Help You Get a “Fresh Start Bankruptcy”
Chapter 7 bankruptcy, Arizona’s most frequently filed chapter of bankruptcy is also known as “fresh start bankruptcy”. Many people in all walks of life fun into unexpected financial difficulties. They are faced with over-whelming credit card debt, medical bills, and can’t keep current on their bills. Usually, this is caused by something unexpected such as: illness, divorce, loss of work, pandemic, or other circumstances that were unforeseen.
If you are finding yourself in a bad financial predicament, filing Ch 7 bankruptcy can be an effective debt relief method. Filing a Phoenix Ch 7 bankruptcy discharges most of your debt. Declaring Chapter 7 in Arizona gives you the “Fresh Start” you need. Additionally, in most cases, you will be able to keep your car, your home, and your retirement.
Chapter 7 to Stop a Wage Garnishment
Zero Down Chapter 7 Bankruptcy
Benefits of Filing Ch 7 in Arizona
What is a Chapter 7 Bankruptcy?
A Phoenix Chapter 7 Bankruptcy is a liquidation of your unsecured debts. Thus, debts that are dischargeable in a Ch 7 Bankruptcy are credit cards, medical bills, registration loans, personal loans, and some back taxes. Additionally, you will be required to submit a petition with all of your financial information, take credit counseling courses, and attend a 341 Meeting of Creditors.
How long does a Phoenix Chapter 7 Bankruptcy stay on your credit?
A Chapter 7 BK will remain on your credit for 10 years. Additionally, it will be two years until you are eligible for FHA home loans. However, you can still rent and open new lines of credit until the bankruptcy is off your credit.
Debt can happen to anyone, but getting out of debt on your own isn’t possible for everyone. When debts become too much to handle, filing bankruptcy may be a good option for your situation. Chapter 7 is often most filer’s first choice in bankruptcy.
Benefits of Chapter 7 Bankruptcy in Arizona
The Automatic Stay in Ch 7 BK
Once a Chapter 7 petition is filed, the Automatic Stay of Protection becomes effective. When the Stay is effective, creditors can’t pursue your debts by foreclosing your home, repossessing your vehicle, etc. They also will be unable to garnish your wages and bank account. The stay remains active until your case is discharged or dismissed. However, filers should be aware that their creditors can file a Motion for Relief from the Automatic Stay, which will allow them to proceed with collection if the judge grants it.
Fresh Start and New Credit Awaits
Opening new lines of credit won’t be impossible after your Chapter 7 Bankruptcy. Many filers will be able to finance a vehicle shortly after filing. This will also help rebuild credit after a bankruptcy. Filers usually receive offers for new credit cards and other lines of credit once the case is discharged.
No Repayment Plans in a Chapter 7 BK
Disadvantages of Chapter 7 Bankruptcy in Arizona
A major disadvantage of filing Chapter 7 is that many significant debts aren’t wiped out in Chapter 7. The number one example of this is student loans. While garnishments will be stopped temporarily by the automatic stay, garnishment can resume once the case has ended. The filer will need to work out arrangements with their educational lender.
Familial obligations like child support and alimony are treated similarly in Chapter 7. Other debts will technically be discharged, but the creditor can choose not to provide you with service if you have discharged their bills through bankruptcy. Common examples are cell phone providers and doctors. For some of these services, you should easily be able to find an alternative provider. However, some services, like electricity, are determined by where you live. You may need to resolve those debts, even after your debts are discharged, for them to continue to provide service to you.
Talking About your Debt
Not only will you have to talk about your debts to an attorney, but you will have to discuss your finances at your 341 Meeting of Creditors. This bankruptcy hearing is for both Chapter 7 and Chapter 13 bankruptcy. Your trustee will be present and will have at least a few questions about your petition. Your creditors will also have the opportunity to appear and argue as to why their debts shouldn’t be included in the bankruptcy.
Your Chapter 7 Bankruptcy will remain on your credit for 10 years from the date of filing. You will be ineligible for FHA loans for 2 years post-filing. While not everyone will be notified of your bankruptcy, it will be public record so anyone that specifically searches for you will be able to find your bankruptcy. Your current employer can’t fire you for filing bankruptcy, but future employers may choose not to hire you if they find the bankruptcy on your record.