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Arizona Chapter 7 Bankruptcy Attorneys

Most Consumers Filing Chapter 7 Keep Most or All of Their Possessions and Assets

Providing Protection from Creditors and Debt Relief throughout Arizona

When a family faces staggering debt and aggressive collection practices, it can affect every aspect of one’s life from providing for your family’s needs to avoiding the stress and anxiety that can lead to marital conflict. At Stone Rose Law, we understand the stress and frustration as well as the far–reaching impact of being unable to pay one’s bills when struggling to provide for your family. We have successfully employed the Chapter 7 Bankruptcy process to help individuals, families and small business owners eliminate debilitating debt and rebuild their economic lives. If you are struggling to provide for your family and facing oppressive debt enforcement tactics, an Arizona Chapter 7 bankruptcy attorney may be able to bring an immediate stop to the aggressive tactics of your creditors so you can take control of your budget and monthly finances.

While the Bankruptcy Code has several chapters that offer protection from creditors and debt relief to those throughout Arizona, Chapter 7 Bankruptcy (also known as “liquidation” or “personal bankruptcy”) is one of most effective ways to obtain financial recovery. Chapter 7 Bankruptcy is what many people understand as “bankruptcy” in the generic sense of the elimination of debt and liquidation of assets to pay creditors. However, the majority of Chapter 7 consumer bankruptcies are what is referred to as a “no asset Chapter 7 Bankruptcy”. This term essentially is an acknowledgement that in the vast majority of Chapter 7 Bankruptcy cases debtors keep most or all of their property and assets because the person seeking bankruptcy relief has few, if any, assets that are not subject to exemption from distribution to one’s creditors. The important point that many people who are considering a Chapter 7 Bankruptcy in Arizona do not understand is that most people that qualify for a Chapter 7 do not surrender any of their possessions.

What Is a Chapter 7 Bankruptcy?

Although Chapter 7 Bankruptcy is an effective solution to financial hardship for many Arizona individuals, families, and businesses, it is not necessarily the right option for everyone. Generally, Chapter 7 Bankruptcy is an appropriate option for those in Arizona who have a substantial amount of unsecured debt but lack the household income to pay this debt and afford basic living expenses. Once an Arizona bankruptcy lawyer files a Chapter 7 Bankruptcy and serves your creditors, an “automatic stay” takes effects, which requires that all debt collection efforts and enforcement procedures immediately cease. The automatic stay is designed to provide debtors an opportunity to “catch their breath” while seeking bankruptcy protection. The automatic stay can bring cessation to many debt collection and enforcement practices including:

  • Telephone calls and letters from creditors
  • Wage assignments
  • Bank Levies
  • Garnishments
  • Foreclosure proceedings
  • Lawsuits by creditors
  • Enforcement of court judgements

The basic objective of a Chapter 7 Bankruptcy is to provide a debtor with a fresh start by eliminating most types of unsecured debt. Though not everyone qualifies for a Chapter 7 Bankruptcy, those that qualify and successfully complete the bankruptcy process receive a discharge of all qualifying listed unsecured debt. This allows many individuals who file Chapter 7 Bankruptcy to emerge from the bankruptcy process free of most, if not all, unsecured debt.

What Debts Can a Chapter 7 Bankruptcy Negate?

The types of debt that generally can be discharged in bankruptcy includes:

  • Credit card debt
  • Unsecured loans and credit lines
  • Medical bills
  • Charge cards for department stores
  • Unpaid utility bills
  • Debts related to judgments obtained by creditors
  • Deficiency balances on secured debt if the security is surrendered (home, vehicles)

There are also other types of debt that may not be discharged in a Chapter 7 Bankruptcy or many only are discharged in certain circumstances. If you are struggling with financial obligations from any of these types of debt, it is imperative that you seek legal advice from a qualified Arizona Chapter 7 bankruptcy attorney. Types of debt or financial obligations that may not be subject to a Chapter 7 discharge or may be subject to such relief only under certain circumstances include:

  • Secured debts (car loan, mortgage on real property)
  • Taxes
  • Debt obtained fraudulently (i.e. credit card cash advances in contemplation of filing bankruptcy)
  • Student loans
  • Court ordered penalties, fines, fees or restitution
  • Family law obligations related to child support and spousal support

What Are Arizona’s Chapter 7 Eligibility Requirements?

Major changes were made to the Bankruptcy Code in 2005, which imposed a “means test” to qualify for a Chapter, 7 Bankruptcy discharge. The means test is designed to assess whether your income is low enough for you to be eligible to file a Chapter 7 Bankruptcy. The means test is used if your annual income exceeds the median income for your geographic area as determined by the IRS. Even if you do not qualify for Chapter 7 Bankruptcy relief, you may still be able to able to seek Chapter 13 relief, which allows you to repay some debt under bankruptcy protection over a period of years and discharge outstanding balances at the conclusion of the payment plan in some cases.

If you are unsure if you qualify for a Chapter 7 Bankruptcy in Arizona, the experienced Arizona bankruptcy attorneys at the Stone Rose Law are available to analyze your eligibility based on your individual financial circumstances. If your income is above the median income for the state, we can help you determine whether you would have enough left over, after subtracting certain expenses, to repay some of your debt. In simple terms, this is the process used to determine whether you qualify for Chapter 7 Bankruptcy relief.

Taking Steps Towards a Bright Financial Future

Stone Rose Law is available to assist those who need debt relief and protection from creditors throughout the following areas in Arizona:

A Chapter 7 Bankruptcy is a critical step to reclaiming your life and changing course on the road to prosperity. Our experienced Arizona Chapter 7 Bankruptcy lawyers offer a free initial case evaluation so we can assess your situation and determine whether a Chapter 7 Bankruptcy is an effective financial strategy for you. We understand the financial challenges faced by many individuals, families and businesses in Arizona and are here to provide practical effective solutions to your financial challenges. We are ready to answer your Chapter 7 Bankruptcy questions so contact Stone Rose Law today at 480-498-8998.