Chapter 7 Bankruptcy Lawyer in Phoenix, Arizona
Helping Clients Get a Fresh Start
If you feel overwhelmed by the amount of debt you’re in, you’re not alone. Arizona offers Chapter 7 bankruptcy, also known as the “fresh start” bankruptcy, to help provide relief to those in need. If you have credit card debt, medical debt, or other kinds of debt after a job loss, divorce, or illness, you may be eligible for Chapter 7 bankruptcy.
Bankruptcy is an excellent option for honest, hard-working people who wish to keep their homes and retirement savings intact. Resolvere Law PLLC can help you navigate the bankruptcy process and determine eligibility before you begin. If you are interested in filing for bankruptcy, please don’t feel like you must go through it alone. Call 480-702-2272 today for a legal consultation.
Who Can File Chapter 7 Bankruptcy in Arizona?
Unfortunately, not all individuals are eligible to file for Chapter 7 bankruptcy. You must be under a certain income threshold before you can apply. In Arizona, the median income for a single individual in a household is $52,319 per year. The median income increases incrementally for every member of your household.
If your income exceeds this threshold, you must take a Means Test to prove that you don’t have enough income to pay your debts in a timely manner. A Means Test is calculated using the past six months of your income before filing a bankruptcy case. This calculation does not include certain types of income, like Social Security benefits. In general, if your average gross income is below the median income in Arizona, you will be eligible to file for bankruptcy.
How Do You File Chapter 7 Bankruptcy in Arizona?
Before filing for bankruptcy, your attorney will determine if you qualify for Chapter 7 bankruptcy. Your attorney will then review your financial status to ensure that bankruptcy makes practical sense for you. Once those details have been confirmed, your attorney will prepare your petition and file it with the bankruptcy court.
Once your bankruptcy petition is filed, an automatic stay will go into effect. This stay requires all creditor collections to cease, including calls, home foreclosure actions, letters, and repossessions. Any creditor who wishes to get ahold of you must now go through your attorney.
What is the First Meeting of Creditors?
Around 15 days after filing for bankruptcy, you will receive notice of a bankruptcy trustee who has been assigned to your case. You may also receive a request for additional documents, which you must provide as soon as possible.
Around 40 days after filing for bankruptcy, you must attend the First Meeting of Creditors, also called the 341 Meeting of Creditors. During this meeting, the bankruptcy trustee and any creditors who attend will ask you questions about your financial situation. Your attorney will help you navigate these questions and answer them to the best of your ability.
After the First Meeting of Creditors, you will be required to complete a credit counseling course within 60 days. Your attorney will file your completion of the course with the court as proof. Once you have completed the course, you will receive a discharge letter from the court granting your Chapter 7 bankruptcy status. You will then have a fresh financial start and can begin taking steps toward rebuilding your credit.
How Can a Chapter 7 Bankruptcy Lawyer Help Me?
Chapter 7 bankruptcy is a valid option for those who are in unmanageable amounts of debt with no resolution in sight. Chapter 7 bankruptcy often allows individuals to retain their homes and their retirement assets while gaining a fresh start. If you are struggling with creditor collections, foreclosure actions, or repossessions, Chapter 7 bankruptcy may be an option for you.
Resolvere Law PLLC can assist you by walking you through the Chapter 7 bankruptcy process every step of the way. An attorney on our team will help you determine your eligibility, file your petition with the court, answer questions from creditors and trustees, and complete your credit counseling course. You can get a fresh start and work on rebuilding your credit in no time. To learn more about Chapter 7 bankruptcy, call 480-702-2272 today.