Chapter 7 Gives Residents a Fresh Start
Filing under Chapter 7 bankruptcy represents a fresh financial start for the petitioner, more than any other chapter in the U.S. Bankruptcy Code. Chapter 7 is known as the “Liquidation Bankruptcy” – the nonexempt assets of the debtor are sold off, or liquidated, and distributed to creditors (assuming there is something to be distributed). The debtor is discharged of any obligation to pay the remaining debts. There are some exceptions, though, such as current child support obligations and spousal support (alimony), both of which are nondischargeable debts in bankruptcy proceedings. When deciding which chapter to file you may notice there are a number of different options mentioned online. Some of these can include Chapter 7, 11, 13, and Chapter 20.
What Will Chapter 7 Bankruptcy in AZ Do for You?
- You’ll get immediate debt relief.
- There are no debt limits to impede your complete discharge.
- Creditor harassment ends! Answer the telephone and open your mail again without fear of aggressive actions by collection agencies.
- Garnishment of your bank accounts and wages will stop.
- All repossession actions will cease.
- All foreclosure actions will stop.
- Civil lawsuits to collect or enforce a debt will end.
- You will keep your exempt property, which is most of what you own, if not everything.
- Your post-petition earnings will be free and clear of discharged obligations.
- You will not have to prepare and submit a repayment plan to the court.
- You will probably get a discharge within 90 days of filing.
- Unpaid medical bills will be discharged.
- Attorneys fees are typically less than with other bankruptcy chapters.
- Your unsecured debts will be eliminated.
- You will never have to repay discharged debts, such as payday loans, credit card debts, repossession deficiency balances, most judgments, automobile loans, and certain tax obligations.
- You will have a better life and your family will have a better financial future.
Who Can File for Bankruptcy Protection Bankruptcy in Arizona?
An individual, corporation, limited liability company, or partnership can file a petition for bankruptcy relief under Chapter 7. Both husband and wife may file a joint petition or one spouse may file individually.
The Chapter 7 bankruptcy petitioner must also satisfy the following requirements:
- Must have resided in Arizona for the greater part of the 180 days preceding the Chapter 7 filing (that is, petitioner is at least a 90-day resident of Arizona).
- Must be financially eligible for a Chapter 7 filing under the Means Test.
- Within 180 days before filing, must have participated in credit counseling from an approved nonprofit agency, the official credit counseling certificate must be filed with the petition.
How Does Bankruptcy Discharge Free You from Debts?
As you will discuss with your attorney in a Zolman Law bankruptcy, the discharge of debts is the goal of an individual who files for bankruptcy relief under Chapter 7. While the individual debtor keeps his or her exempt property, the discharge relieves the debtor of any legal obligation to pay back most or all of the debts – discharged debts are wiped out!
The Chapter 7 bankruptcy procedure may be completed in several months and is the swiftest, least complicated form of relief available when compared to Chapter 13 individual debt adjustment and Chapter 11 reorganization, both of which involve court-approved monthly payment plans that can continue for several years.
When the debtor is not an individual but is a partnership, corporation, or limited liability company, a discharge is not available. Instead, the bankruptcy case is closed following the dissolution of the business organization.
Learn more about the Zolman Law and Chapter 7
If you are contemplating filing for bankruptcy in Phoenix, the Zolman Law, PLLC, provides personalized service when you need it most. We have helped more than 2,000 area residents eliminate over $100 Million in debt through the filing of Chapter 7, Chapter 11, and Chapter 13 bankruptcies.
Contact the Zolman Law
For more information about the Zolman Law, contact our offices to schedule a FREE VIP Bankruptcy Consultation. When you meet with us, we listen to your problems and take the time to understand all of your concerns. After we’ve had an opportunity to review your financial situation, we will clearly identify your debt relief options. From there, we will plan the best strategy based on the most pressing matters specific to your financial situation, including creditor lawsuits, home foreclosure, car repossession, and creditor harassment.
Call us at (480) 745-1770 today and speak with a friendly representative of our legal team.
Find out for yourself how our experienced bankruptcy legal professional can assist you. Call the Zolman Law at (480) 745-1770 to schedule your free consultation.
Filing Chapter 7 Bankruptcy in Arizona
There are many reasons people fall into financial trouble. There are three big events that often lead to financial problems and eventually filing chapter 7 bankruptcy in Arizona:
- Medical bills and health problems
- Underemployment or loss of a job
If you experience one of these events in your life, you’re not alone. There are many life events that can lead to financial trouble. No matter the cause of your financial difficulties there is always a way out.
How Chapter 7 Bankruptcy Attorneys Help With Phoenix Bankruptcy Filings
With so much at stake, your business, your property, your future, you need an experienced and qualified attorney to match your unique situation.
We can help you resolve your debt issues or give you a new financial start. The Zolman Law provides debt elimination and bankruptcy services under Chapter 7, Chapter, 11, and Chapter 13 of the U.S. Bankruptcy Code. Each chapter represents a specific type of case. Each case has certain procedures and rules.
When people suffer through a financial hardship, they often ask if their situation is so dire that they require a Phoenix bankruptcy attorney. If you’re not sure if you should file for bankruptcy, consult with an experienced Mesa Chapter 7 bankruptcy attorney to get information specific to your situation.
An experienced lawyer can provide you with information about debt relief solutions you need to make informed decisions. Here are some signs that can serve as an indication of your present financial situation and point to the need for a bankruptcy attorney.
Credit Card Debt Discharged in Chapter 7 Bankruptcy
If you carry a high credit card balance and are not in the position to pay the balance or the amount you’d need to pay seems unrealistic, that’s a sign of financial trouble. Credit card debt is often considered “unsecured debt.” This type of debt could be discharged if you file Chapter 7 bankruptcy.
Medical Bills Erased in Chapter 7 Bankruptcy
According to statistics, medical bills have overtaken credit card bills as the leading cause of bankruptcy. If you have a large amount of unsecured debt, which can include medical bills, you may consider Chapter 7 bankruptcy. This may be what you need to get a fresh financial start. If you have a large amount of medical debt, bankruptcy might offer you some peace of mind.
Borrowing From Your Retirement Account is a Bad Idea
If you’re borrowed funds from your retirement account to pay debts or are considering it, that’s a red flag that shows you’re financially overwhelmed. It’s a bad idea to pay off your dischargeable debt using your retirement money. Once you use this money it’s unlikely you’ll be able to replace it. That means you may be in deeper financial trouble when it comes time for you to retire.
Repossession and Foreclosure Before a Chapter 7 Bankruptcy
If you’re about to lose your car to repossession or your home to foreclosure, you should contact your bankruptcy lawyer to discuss the available options. Filing bankruptcy might stop a vehicle repossession or home foreclosure in its tracks. Bankruptcy may offer you the opportunity to save the valuable assets you worked hard to acquire.
Creditor Harassment with a Chapter 7 Bankruptcy
If you’re getting harassing or threatening messages and calls from creditors about your debts, you should understand that filing for bankruptcy can stop this harassment. Filing for bankruptcy can prevent creditors from communicating with you in any form, including demand letters and calls. This can help give you some peace.
Stop Wage Garnishment with a Chapter 7 Bankruptcy
If part of your paycheck is being taken through garnishment because you owe money, it’s a sign of trouble. A garnishment can take a significant amount of money from your paycheck. This could put you deeper in the hole because you won’t have money to invest or save. You’ll end up trying to make ends meet while living paycheck to paycheck. When an emergency arises you won’t have the funds to handle it.
Start to Repair Poor Credit with a Chapter 7 Bankruptcy
Many people believe bankruptcy will permanently ruin their credit. However, this is not true. Your credit rating will initially take a hard hit, however, you can immediately begin to rebuild your credit after the bankruptcy is discharged. After you’re relieved of your current debt and have a chance to reorganize your finances, your credit score will increase. When you begin to make better financial decisions, a bankruptcy filing can help improve your credit over time.
Free Phoenix Bankruptcy Filing Consultation From Professionals
If you’re not sure whether or not filing for bankruptcy is right for you, contact our office today. We’ve helped thousands of Arizona citizens get their lives back on track with compassionate assistance from our experienced professionals. Call or fill out our form to get help today.