If you are considering filing bankruptcy in Arizona you may be able to file either Chapter 7 or Chapter 13 Bankruptcy. To file Chapter 7 Bankruptcy your income level must pass a “means tests”. The means test will determine if your annual income is below the median income level given your family size in the state of Arizona. The Census Bureau provides income data for various size families in each state. You can also contact an Arizona Bankruptcy Attorney who can perform the means test for you. If your income does not pass the means test there may be certain other financial exclusions which may allow your family to file Chapter 7 Bankruptcy. It is best to discuss your bankruptcy options with an Arizona Bankruptcy Attorney.
If you are unable to file Chapter 7 Bankruptcy you may be able to file Chapter 13 Bankruptcy. Arizona bankruptcy state laws will follow the federal rules for bankruptcy. To file Chapter 13 Bankruptcy in Arizona you will need to have a steady income with a certain amount of disposable income to use to repay your creditors under a debt repayment schedule. To file Chapter 13 Bankruptcy you must have no more than $922,975 in secured debt and no more than $307,675 in unsecured debt. The amount of unsecured and secured debt allowed may be adjusted periodically.
Filing Chapter 13 Bankruptcy
To file Chapter 13 Bankruptcy in Arizona you may want to contact an Arizona Bankruptcy Attorney. The Arizona Bankruptcy Lawyer will help you file your petition in the Federal Bankruptcy court. Bankruptcy Attorneys can also help you develop a list of all creditors, file your Statement of Financial Affairs and determine your current income and expenses. Hiring a Bankruptcy Attorney may be beneficial to ensure all documents are completed correctly. Failure to list debts or assets could result in the debts not being discharged after the bankruptcy repayment schedule is complete. Intentionally excluding assets on documents could result in bankruptcy fraud charges.
Chapter 13 Bankruptcy will vary from Chapter 7 Bankruptcy because there will not be an immediate discharge of debts. Chapter 13 Bankruptcy in Arizona will allow you to develop a bankruptcy repayment schedule which will outline the method of payment for debts over a 3 to 5 year period. An Arizona Bankruptcy Attorney will help you develop this plan.
Finally, if you file Chapter 13 Bankruptcy in Arizona, a bankruptcy attorney will help determine a trustee who will be appointed by the federal Bankruptcy Court. The trustee will gather funds from the debtor and ensure the funds are distributed to the appropriate creditors. At the end of the bankruptcy repayment period, if the funds have been paid appropriately, the debts will be discharged.
Certain debts will not be discharged by filing Chapter 13 Bankruptcy in Arizona. These debts may include:
- Alimony or spousal support
- Child support payments
- Back taxes owed
- Certain types of student loans
- Debt incurred fraudulently
- Certain types of cash advances
- Certain large types of purchases made for luxury goods
Filing Chapter 13 Bankruptcy is an important decision and should not be made with out consulting an Arizona Bankruptcy Attorney. Under certain financial conditions, filing bankruptcy may be your best option. If you are paying the minimum amount for debt, facing home foreclosure, wage garnishment, high medical bills or you have lost your job Chapter 13 Bankruptcy may help you get a fresh financial start.
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Tags: 13 Bankruptcy, Arizona, Chapter 13, Chapter 13 Bankruptcy
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