Chapter 7 Bankruptcy Lawyers in Glendale, AZ

Let Us Help You Find Financial Freedom!

Bankruptcy is considered a four-letter word by many people who don’t understand it. When someone becomes utterly crushed by their financial burdens, it can become impossible to get back on top. When your monthly payments are barely covering the interest, financial difficulties become all but guaranteed.

At Resolvere Law PLLC, our clients expect results, and our Glendale bankruptcy lawyers can help improve your financial future. Chapter 7 bankruptcy is a complex legal process that requires a deep understanding of Arizona’s bankruptcy laws. Our bankruptcy attorneys have the experience and knowledge to help you reach a brighter future.

Call our Glendale office at 480-586-1327 and ask for your FREE consultation. This is the first step to understanding your options and achieving a better financial future.

What is Bankruptcy?

This legal process is designed to help individuals and businesses who are suffering from overwhelming debt. When your payments become impossible to keep up with, and the collection calls never seem to stop, filing for Chapter 7 bankruptcy can give you the room to breathe and eventually get your payments under control.

This process isn’t without its downsides, though. That is why working with a Glendale bankruptcy lawyer is so important. Our expertise will help you understand the pros and cons and how they impact your specific situation because everyone has different financial difficulties.

Simply filing bankruptcy is enough to stop wage garnishments, avoid repossessions, and prevent the foreclosure of your home. Chapter 7 bankruptcy allows individuals who meet the requirements to discharge most unsecured debts owed.

Bankruptcy attorneys help their clients understand the requirements for filing bankruptcy, the limitations of filing, and how to maintain financial health after their bankruptcy is successfully filed. Attempting the process alone can result in mistakes, delays, and denials, all while your interest continues to stack up.

What Are Arizona’s Specific Bankruptcy Exemptions?

Most states have specific laws that dictate how assets are protected, who qualifies for bankruptcy, and what exemptions apply. Some states allow filers to choose between federal and state exemptions, but Arizona is not one of them. You will be required to follow Arizona’s exemptions when filing for bankruptcy in Arizona.

Arizona’s exemptions include the following:

Homestead Exemptions

These exemptions protect up to $400,000 in home equity for a primary residence, including houses, condos, and mobile homes. Rental properties, investment properties, and vacation homes are not covered by this exemption.

Vehicle Exemption

This protects up to $15,000 in equity for motor vehicles. This exemption increases to $25,000 if you have a disability.

Personal Property Exemptions 

Arizona law protects various household items up to a certain limit. Furniture, appliances, and household goods are protected up to $6,000 in value, and clothing is protected up to $500 in value. Pets and domestic animals worth up to $800 are protected.

Wage and Income Exemptions 

Up to 75% of your disposable income or 30 times the federal minimum wage are protected. This protects a majority of your income from wage garnishment. This also protects your earned but unpaid wages for your work done before filing for bankruptcy.

Retirement and Pension 

Most qualified retirement accounts are fully protected from creditors, including 401(k2)s, IRAs and Roth IRAs, government pensions, and social security benefits.

Tools of the Trade

Up to $5,000 in work-related tools and equipment are protected, including vehicles used for business purposes.

In order to find out what property is exempt and what isn’t covered by exemptions will require you to speak with a Glendale bankruptcy attorney. Call 480-568-1327 to schedule your FREE consultation with Resolvere Law PLLC.

What Happens to Non-Exempt Property? 

When an asset is not covered by Arizona’s exemptions, the bankruptcy trustee may sell it to pay creditors. In many cases, you will be able to keep all of your property because all of your assets will be protected by the exemption laws.

It is crucial to understand Arizona’s exemption laws when filing for Chapter 7 bankruptcy. Understanding these exemptions will help protect your essential assets while eliminating financial burdens. You will need guidance throughout the bankruptcy process. You will need Resolvere Law PLLC.

Who Qualifies for Chapter 7 Bankruptcy in Glendale?

There are strict guidelines that govern who is eligible for this type of debt relief and who is not. Chapter 7 is intended for individuals who cannot reasonably pay for or afford their debts, so Arizona law imposes strict income limits when determining eligibility. This ensures that only those who are in true financial distress can file.

To be eligible for Chapter 7 bankruptcy, you must meet the following criteria:

The Means Test

The Arizona means test is a key factor for determining who qualifies for Chapter 7 bankruptcy. This test compares your household income to Arizona’s median income levels for a household of similar size.

Arizona median income limits:

• 1-Person Household: $68,887
• 2-Person Household: $83,027
• 3-Person Household: $99,961
• 4-Person Household: $110,040

If your income is below these limits, you automatically qualify for Chapter 7 bankruptcy. If your income exceeds these limits, you may still qualify by deducting certain expenses such as mortgage payments, car payments, childcare costs, and medical bills.

Repeat Filers 

You must wait at least 8 years to file bankruptcy if you have already successfully filed Chapter 7 before. If you have successfully filed Chapter 13 bankruptcy, you will have to wait at least 6 years unless you have paid at least 70% of your unsecured debt in a Chapter 13 repayment plan.

Arizona Resident 

Arizona’s bankruptcy exemptions are intended for Arizona residents. You live in Arizona for a minimum of two years before filing for bankruptcy in Glendale. If you recently moved to Arizona, the bankruptcy court may apply the exemption laws from your previous state.

If you are unsure which state’s exemptions you should expect, it is important to speak with a bankruptcy attorney.

No Fraud

All of your financial transactions leading up to the date you filed will be reviewed by the Bankruptcy court. If you transferred assets, took out a large cash advance, or made frivolous purchases shortly before filing, you may be flagged for fraudulent activity. If you are planning on filing bankruptcy, avoid making large financial transactions. Your bankruptcy may be denied if the court suspects fraud.

Are you nervous about your financial history? Call 480-568-1327 to speak with an experienced Arizona bankruptcy attorney.

Which Debts are Covered by Chapter 7?

Not all debts are dischargeable through Chapter 7 bankruptcy, and unsecured debt is the majority of the debt covered.

Debts that can be discharged by Chapter 7 include the following:

Credit card debt: Outstanding balances, late fees, and interest charges on credit cards can be completely wiped out.

Medical bills: All medical expenses, from hospital bills to surgeries, can be discharged.

Personal loans: Unsecured loans from banks, credit unions, payday lenders, and private parties are eligible for discharge.

Lease obligations and utility bills: Past-due balances for electricity, water, gas, phones, and so on can be discharged. The same is true for back rent and penalties incurred by breaking a lease.

Business debts: If you are personally responsible for business-related debts, you may be able to have them discharged via bankruptcy.

Judgments from Lawsuits: If creditors sue you and obtain a judgment, forcing you to make payments, the resulting debt can be eliminated unless it involves fraud or intentional misconduct.

In order to understand whether or not bankruptcy is right for your particular situation, you will need to sit and talk with a bankruptcy attorney who will be able to examine your debts and determine whether or not they will be discharged. Resolvere Law PLLC can help you further understand exemptions and which debts will and will not be discharged.

What Happens to Your Home or Vehicles?

Things like your home mortgage, car loans, and other collateral loans are treated differently when filing Chapter 7. If you wish to keep your home or vehicles, you will need to continue making payments on them. You also have the option to surrender the property and have the debt discharged. You can reaffirm the debt by signing a new agreement and continue making affordable payments, or you can make a lump sum payment and redeem the property.

Which Debts are Not Dischargeable

Chapter 7 eliminates many types of debts, but certain financial obligations cannot be discharged under federal law. Even if you successfully file bankruptcy, you will still be required to pay these debts.

Child Support and Spousal Support

If you are obligated to make child support or alimony payments, you will still be required to make those payments. Your obligation will continue as outlined by your family court order. If you have fallen behind on your payments, you may be able to work out a repayment plan under Chapter 13 bankruptcy, but you will not be able to eliminate these debts.

Tax Debts

Your recent federal and income tax debts are generally not dischargeable. Older tax debts may be eliminated if they are at least three years old, your tax returns were properly filed on time, and the IRS has not placed a lien on the debt.

If you have burdensome tax debt, it is in your best interest to act fast. A bankruptcy attorney can help you determine whether you can eliminate your tax debt.

 Student Loans

One of the most difficult debts to discharge is student loan debt. It can only be eliminated if you are able to prove you are facing undue hardship because of the debt using the Brunner Test. The Brunner Test requires you to prove that you cannot maintain a minimal standard of living while also repaying the loan. You will need to prove that the financial hardship will likely continue for a significant portion of the repayment period and that you have made good-faith efforts to repay the loan.

Fraud Misrepresentation and Criminal Restitutions

Fines, penalties, and restitution ordered in a court hearing as part of a criminal sentence are not dischargeable.

The same is true for fraudulent activity or as a result of misrepresenting your information. If a creditor is able to prove you lied on a credit or loan application or that you purposefully ran up large credit card debts right before filing bankruptcy, the sum may not be dischargeable, or worse; your bankruptcy may be outright denied.

Even if your debts largely consist of the above-named items, you may still be able to benefit from filing for bankruptcy or other debt-relief options. If you are unsure of what kind of debt you have, call 480-568-1327 and ask for a FREE consultation. You deserve a fresh start, and we want to help.

What Does Life After Filing Chapter 7 Bankruptcy Look Like?

Filing bankruptcy offers a fresh start, but you should be aware of some of the negative lasting effects. While your debts may have been discharged, you will find that you will face certain hurdles, and being prepared for them can help you out in the long run.

Access to Loans and Lines of Credit

While bankruptcy will stop creditor harassment, it will make it more difficult to obtain a line of credit or loan after filing. You may be able to secure auto or personal loans, but you can expect higher interest rates. Some lenders will refuse to work with someone who has recently filed for bankruptcy.

You Will Need to Rebuild Your Credit

Your credit score will have a large impact after filing for Chapter 7 bankruptcy, and the bankruptcy will remain on your credit report for 10 years.

Credit counseling can help you rebuild your credit in a safe way that doesn’t result in financial turmoil. You can utilize things like secured credit cards and avoid borrowing more than you can afford.

Bankruptcy May Impact Your Personal and Professional Life

When looking for rental options, landlords may choose to deny your application if you have a recent bankruptcy. You may be able to counter this issue with a larger security deposit, a cosigner, or by proving you have a steady income and a great rental history.

Bankruptcy can impact your ability to get hired for certain jobs, primarily law enforcement, finance, and executive roles.

Are You Ready to Speak with Our Glendale Bankruptcy Lawyers?

As you can see, bankruptcy is a delicate process requiring attention to detail and a deep understanding of both federal and state laws. Call 480-568-1327 to find out why our clients expect real results. Resolvere Law PLLC can help you understand if you are eligible for Chapter 7 and other debt relief. We can find out how your student loans and other unsecured debt can be handled.

Don’t wait and let the debt pile up; call today and ask for a FREE consultation. Your fresh start is a phone call away.