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What You Need to Know Before You File Bankruptcy in Glendale, AZ

I want to file bankruptcy in Glendale, AZ

What do I need to know before filing bankruptcy?

Are you facing a massive pile of debt but have no idea how to repay it? Overwhelming debt may cause you extreme stress, hardship, and pressure. When a person or a company struggles to repay debts to creditors, filing for bankruptcy is often the last resort to help achieve a debt-free life and have a fresh start. This is also an excellent opportunity to reorganize your finances, pay off a creditor, rebuild your credit, and pursue debt settlement. However, filing bankruptcy is a legal proceeding that may have long-term financial and credit consequences. A reliable Glendale bankruptcy attorney can explain everything you need to know about the bankruptcy basics.

Before declaring bankruptcy, it is important to consult our reliable Glendale bankruptcy attorneys to help you understand how bankruptcy works. If you have doubts regarding the bankruptcy process, call us today at Glendale Bankruptcy Attorneys by dialing (623) 471-1377.

How Does Bankruptcy Work in Arizona?

The bankruptcy system in Arizona is mainly governed by federal law. It is designed to help bankrupt debtors get back on track. It works by unwinding the contract between you and your creditor. Without a contract, you’ll have no obligation to pay the outstanding debts, and that’s what will give you a fresh start.

Bankruptcy laws vary from state to state; therefore, it is highly advisable to seek legal advice from a credible Glendale bankruptcy attorney to help you file your case in compliance with the Arizona federal law. Bankruptcy law plays a significant role in determining the assets you can save and keep once you have filed your bankruptcy case.

Our Glendale bankruptcy attorneys will help you choose the best bankruptcy chapter for your financial situation. Call us today to schedule a consultation.

How Do I Choose the Right Bankruptcy Chapter?

Before you file for bankruptcy, it is essential to know how to choose the best bankruptcy chapter that will solve your debt problems. Most debtors declare bankruptcy under Chapter 7 or Chapter 13 bankruptcy. The most significant distinction is what happens to your assets.

Consulting a qualified Glendale bankruptcy attorney can guide you in choosing the right bankruptcy chapter, depending on your financial situation.

Chapter 7 Bankruptcy

 Chapter 7 or liquidation bankruptcy involves selling a part or all of your assets for you to pay back your debts. If you’re behind on your bills and don’t have the means to afford living expenses and monthly payments, filing Chapter 7 bankruptcy could be your first option. This type of bankruptcy chapter generally works best for those with a low income and few assets.

Since Chapter 7 involves liquidation, you may have to give up some of your assets, which will have a long-lasting negative impact on your creditworthiness. A court-appointed trustee will sell your nonexempt property to pay your creditors.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as the “wage earner” or “reorganization” bankruptcy, allows debtors with enough income to repay all or some of their debts as an alternative to liquidation.

In this chapter, you can reorganize your debts and repay your creditors some or all of what you owe using a three-to-five-year repayment plan. This chapter is best for you if you have assets and properties that you want to keep or a mortgage that you want to get current on.

Chapter 13 requires you to have a stable income to keep current on loans and repay debts while protecting your assets from liquidation. Even though it’s a common bankruptcy type, only debtors with sufficient income can file Chapter 13 to proceed with the repayment plan.

Our Glendale bankruptcy attorneys will help you choose the best bankruptcy chapter for your financial situation. Call us today to schedule a consultation.

How Do I File Bankruptcy in Glendale, AZ?

Filing bankruptcy can be financially, physically, and emotionally draining. At Glendale Bankruptcy Attorneys, we have extensive experience in handling successful bankruptcy cases.

Our seasoned Glendale bankruptcy attorneys can guide you throughout the step-by-step bankruptcy process and ensure the completeness and accuracy of your paperwork. Here are the steps in filing bankruptcy:

  • Choose the best bankruptcy chapter for you
  • Prepare all necessary financial documents
  • Take a credit counseling course
  • Fill out the official bankruptcy forms and file a complete paperwork
  • Attend the 341 creditor’s meeting
  • Attend the confirmation hearing and make plan payments (for Chapter 13)
  • File a debtor’s education course certificate
  • Receive your debt discharge

Our Glendale bankruptcy attorneys will help you choose the best bankruptcy chapter for your financial situation. Call us today to schedule a consultation.

How Do I Qualify for a Bankruptcy Filing?

Before choosing the bankruptcy chapter to be filed, you must first pass the bankruptcy means test. You must also consider your monthly income and living expenses to know if your disposable income is enough to pay off debts. 

Qualifications for Chapter 7

In Chapter 7 bankruptcy, if your family’s income falls below the median income of Arizona, it means that you pass the means test. On the other hand, if your family’s income exceeds the median income, you may still be qualified to pass the means test after you deduct a list of the allowable living expenses. 

Qualifications for Chapter 13

On the other hand, Chapter 13 bankruptcy (wage earner bankruptcy) is considered an expensive option since it requires a debtor to have a stable monthly income. To qualify, you need to pay all non-dischargeable debts and the value of your non-exempt property using all your disposable income.

Whether you intend to file Chapter 7 or Chapter 13 bankruptcy, it is a good idea to seek legal advice from a competent Glendale bankruptcy attorney. They will assist you with your bankruptcy petition and help ensure that you successfully go through your bankruptcy case.

Will Bankruptcy Wipe Out My Debts?

Bankruptcy wipes out different types of debt like personal loans, credit card balances, medical bills, and overdue utility payments. However, not all debts can be discharged in a bankruptcy case. It depends on the bankruptcy chapter that you will file. A qualified Glendale bankruptcy lawyer can help you determine which of your debts will be eliminated in bankruptcy.

Unsecured debts such as credit card bills and medical bills are both discharged with bankruptcy filings, which means you do not have to pay these debts. On the other hand, non-dischargeable debts include student loan debt, certain tax debt, car loans, child support, and alimony. Some of the secured debts may be reduced under Chapter 13 through a “cramdown,” in which the approved repayment plan reduces the amount you owe.

When you file for a bankruptcy petition under Chapter 7, debts will be discharged once the bankruptcy court approves your case. If you choose to file under Chapter 13, you must continue making payments throughout your payment plan. Once you have completed your repayment plan, unsecured debts will then be eliminated.

How Can I Protect My Property in Bankruptcy?

Bankruptcy doesn’t mean that you will lose everything that you have. In Arizona, there are bankruptcy exemption laws that can protect your assets and properties. Here are the significant bankruptcy exemptions that can be useful to your bankruptcy case:

  • Exempt Property. Bankruptcy law allows debtors to keep a certain amount of property after going through bankruptcy proceedings. This is called the “exempt” property. This generally includes your assets that are necessary for living and working.
  • Non-Exempt Property. A property that cannot be exempted is called a “non-exempt” property. It generally covers items that fall outside of the necessities for living and working.
  • Doubling bankruptcy exemptions. Spouses who decide to file for joint bankruptcy can be eligible for a double exemption if they both own the property.
  • Homestead Exemption. You can protect up to $150,000 worth of your home, condo, or other property covered by the homestead exemption.
  • Motor Vehicle Exemption. You will be allowed to protect up to $6,000 in one motor vehicle. If you’re an elderly or disabled debtor, you’ll be allowed protection of up to $12,000.
  • Personal property
  • Tools of the trade
  • Life insurance benefits
  • Alimony and child support
  • Wages, workers’ compensation, and unemployment compensation
  • Pension benefits and qualified retirement plans

An experienced Glendale bankruptcy attorney usually advises their clients to be reminded that the amount of exemption may be subject to change. It is essential to check the updates for adjustments of exemption from time to time. If you need help stopping a car repossession or a home foreclosure, our Glendale bankruptcy attorneys can help. 

Where Do I File My Bankruptcy Paperwork in Arizona?

Your bankruptcy case starts when you file your paperwork with the local bankruptcy court and either pay the filing fee or request a fee waiver. The courthouse where you’ll be assigned depends on the county in which you live. A credible Glendale bankruptcy lawyer can help you file your petition at your designated court. Arizona has three bankruptcy courts, and each location serves a particular geographical area:

  • Phoenix (Apache, Gila, Maricopa, Navajo counties)
  • Tucson (Cochise, Graham, Greenlee, Pima, Pinal, and Santa Cruz counties)
  • Yuma (La Paz, Mohave, and Yuma counties).

After filing, the bankruptcy court will issue an automatic stay that will prevent most of your creditors from continuing to collect from you. Even court cases and trials related to debt collection will have to stop.

Our Glendale bankruptcy attorneys will help you choose the best bankruptcy chapter for your financial situation. Call us today to schedule a consultation.

Do I Need A Glendale Bankruptcy Attorney?

Bankruptcy is a progressive process that will help you solve your debt problems one step at a time. It has to be done systematically and accurately. It is not easy to deal with financial problems without professional help. Whatever the case may be, consult a competent Glendale bankruptcy attorney at Glendale Bankruptcy Attorneys and be knowledgeable about your rights and options.

Our Glendale bankruptcy law firm will help you choose the best bankruptcy chapter or debt assistance, determine the perfect time to file, and save the assets or properties you want to keep. Call us today to schedule a consultation.

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