Arizona Chapter 7 Attorney

The most common type of bankruptcy, chapter 7 is a pathway to financial solvency for many individuals and businesses. When you file for chapter 7 bankruptcy in Arizona, its possible to remove excessive debt from your balance sheet. While it does have its consequences, they’re not permanent.

Don’t Face the Bankruptcy Court Without A Savvy Arizona Chapter 7 Bankruptcy Attorney

Courtesy of a sluggish economy, many businesses in Arizona have turned to Chapter 7 bankruptcy for a fresh start.

Simply stated, Arizona Chapter 7 bankruptcy essentially wipes-out debts. It’s meant for businesses that have tried their best to hang on during tough financial times, but simply reached a point where they’re unable to pay all of their creditors — on time and in-full.

How Arizona Chapter 7 Bankruptcy Works

The first step in an Arizona Chapter 7 bankruptcy filing is a meeting with your lawyer who will work out a Chapter 7 plan. Once that plan is completed, your Arizona bankruptcy lawyer will submit the plan to the U.S. Bankruptcy Court. Once that is done, an automatic stay on most collection actions is put in place. When the automatic stay goes into effect, the people filing for bankruptcy can take a deep breath. The pressure is off.

Filing For Chapter 7 Bankruptcy In Arizona Usually Marks The End Of All Those Harassing Phone Calls!

As a general rule of thumb, collectors are not allowed to call anyone with an automatic stay. They cannot harass, bother or in any way try to collect on a debt owed. In most cases, creditors are forbidden to garnish a debtor’s wages, initiate or continue lawsuits or pursue you in any way. When the bankruptcy was filed with the court, all of the creditors were given notice of the filing of a bankruptcy and the automatic stay.

Arizona Chapter 7 Bankruptcy: The Creditors Meeting

Next is the Meeting of Creditors. This usually takes place within 20 to 40 days of the filing the bankruptcy petition. The U.S. Trustee gives notice to all the creditors listed on the debtor’s petition. The Trustee and creditors may ask questions of the debtors at this meeting. Some debts may be reaffirmed at this meeting of creditors, which means they’ll be removed from the bankruptcy petition. The debtor continues to pay on those debts as if there was no bankruptcy proceeding in the works. Normally, the only debts reaffirmed in a Chapter 7 Bankruptcy are those that are secured against personal property, such as a sewing machine, piano or other big ticket item.

If the debtor owes more than his or her house is worth, this means that there is no equity for the Court to collect and use toward the bankruptcy. If the mortgage payments are up to date, the Trustee may allow the debtor to keep the house. The same applies to at least one automobile that the debtors are paying on.

After the Meeting of Creditors, they have 60 days to object to their debt being discharged in the bankruptcy. If no creditors file an objection, the discharge order and final decree are issued by the Court. The bankruptcy is not considered over until the final decree has been entered.

Student loans, child and spousal support, money owed to the IRS or any agency of the government, criminal restitution and debts related to an accident involving the use of alcohol cannot be discharged from a Chapter 7 Bankruptcy.

If you are considering filing a Chapter 7 Bankruptcy, contact a bankruptcy attorney to learn all of your options. Don’t try to go it alone before the Bankruptcy Court.