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Helping Clients Rebuild Financial Stability
Some people just need a clean slate to get their life back on track. It doesn’t matter what got you here, whether it be medical bills, credit card debt, job loss, or any other circumstance that resulted in things getting away from you. Once bills start mounting up, it can get hard to slow things down and regain control. When interest rates start adding more to your debts than your minimum payment can cover, things tend to snowball out of control.
Bankruptcy is an option that can help wipe the slate clean and give you a chance to get your feet underneath you again. The bankruptcy process is a complex legal process that requires you to jump through hoops in order to see some or all of your debt wiped away.
Working with our team can be the difference between a successful, beneficial bankruptcy and a waste of time and money. Resolvere Law PLLC has a knowledgeable team that will work with you from step one to step done. Bankruptcy is not something you should attempt alone, as there are strict laws around these debt relief options. When working with Resolvere Law PLLC, expect results. Call 480-568-1327 and ask for a FREE consultation today. Don’t let the interest keep piling up while wondering if Chapter 7 bankruptcy is right for you.
What is Bankruptcy?
Bankruptcy is a legal process designed to help individuals and businesses with overwhelming debt. It offers respite from the crushing payments that keep you up at night and allows you to gain some form of financial freedom. Bankruptcy is a structured way to eliminate or restructure debts, providing you with a fresh start. You can expect less creditor harassment, a way to deal with bills that are piling up, and a reduction in the chance of foreclosure and vehicle repossessions.
Simply filing for bankruptcy is enough to halt wage garnishments, stop repossessions, and prevent the foreclosure of your home. Chapter 7 bankruptcy allows eligible individuals to discharge most unsecured debts. It differs from Chapter 13 bankruptcy, which offers a repayment plan that allows individuals to catch up on missed payments.
With the right legal guidance, you get the opportunity to rebuild your financial wealth without the mounting debt. This powerful tool allows you to secure a more stable future, and Resolvere Law PLLC is the law firm that can help you achieve a brighter future free from financial burdens. Your FREE consultation is only a phone call away.
What are Arizona’s Specific Bankruptcy Regulations and Exemptions?
Each state has different laws and regulations that govern bankruptcy, and understanding Arizona-specific laws is imperative.
Some states allow bankruptcy filers to choose between federal and state exemptions, but Arizona does not have that option. In Arizona, bankruptcy proceedings are expected to follow Arizona’s state-specific exemptions. Understanding these exemptions is an important step when filing for bankruptcy.
Key Arizona bankruptcy exemptions include the following:
Homestead Exemption
This protects up to $400,000 of equity in your primary residence but does not cover rental or investment properties.
Vehicle Exemption
This protects up to $15,000 in vehicle equity or $25,000 if you have a disability.
Personal Property Exemptions
It protects household goods, clothing, appliances, and furniture with a total value cap.
Wages and Income Exemptions
Chapter 7 bankruptcy protects up to 75% of disposable wages or 30 times the federal minimum wage, whichever is greater.
Retirement and Pensions
Most 401(k)s and other retirement plans are fully exempt.
Tools of the Trade
Up to $5,000 worth of tools and equipment necessary for work is exempt.
Who Qualifies for Chapter 7 Bankruptcy in Arizona?
Not everyone is eligible for Chapter 7 bankruptcy in Arizona, as it is designed to give individuals who genuinely cannot afford their debts the chance to stabilize, free from financial burdens. To qualify, Arizona residents must meet the specific requirements outlined below.
Pass the Means Test
The Arizona means test compares your household income with the state’s median income for a household of similar size. If your income is below the median, you automatically qualify. If your income exceeds the median, you may have to deduct certain allowable expenses to show you have little disposable income for debt settlement.
Income Limits
Below are the approximate median income levels for Arizona households. These figures are subject to change. Consulting a bankruptcy attorney is recommended:
1-person household: $68,887
2-person household: $83,027
3-person household: $99,961
4-person household: $110,040
Typically speaking, if your household income is below these amounts, you qualify for Chapter 7 bankruptcy.
Prior Bankruptcy Filings
If you have a prior bankruptcy filing, you must wait eight years before being eligible to file again. If you filed for Chapter 13 bankruptcy, the waiting period is six years unless you have paid at least 70% of your unsecured debt in your repayment plan.
Fraud
Bankruptcy courts examine your recent financial transactions to monitor fraud. Large purchases, cash advances and payday loans, and large asset transfers just before filing may be considered fraudulent and could make you ineligible to file bankruptcy.
Do you meet these requirements? Are you still unsure about your eligibility to file Chapter 7 bankruptcy? If you feel like you are ineligible for Chapter 7, is Chapter 13 bankruptcy perhaps the better option? Resolvere Law PLLC can help you answer all of these questions and more, and it all starts with your free consultation, call 480-568-1327. Our clients expect results!
Are All Debts Covered by Chapter 7?
Chapter 7 bankruptcy provides significant debt relief by eliminating many unsecured debts, but some financial obligations can not be discharged.
Student Loan Debt
Student loans are usually not dischargeable using Chapter 7 bankruptcy. If you can prove undue hardship using the Brunner test, a legal standard used in bankruptcy cases to determine if a borrower can discharge their student loans, you may be eligible.
Child Support and Spousal Support
Court-ordered child support and spousal support, also called alimony, can not be eliminated. You must continue making these payments during and after the bankruptcy.
Most Tax Debt
Income tax debt incurred within the last three years is typically not dischargeable. Older tax debts may be eliminated if they meet strict conditions, such as being at least three years old and properly filed on time. Payroll taxes and liens cannot be discharged.
Secured Debt
Your mortgage and car loans are considered secured debts that are tied to collateral. Chapter 7 can eliminate your personal liability, but you may lose your home or vehicle if you stop making payments on them. If you want to keep the secured property, you may have to reaffirm the debt. This legal agreement allows you to continue making payments on property that could have been discharged via bankruptcy. Court approval is required for this type of agreement.
Fraudulent and Misconduct Debts
Suppose a creditor can prove you obtained the debt through fraudulent activity, misrepresentation, or willful misconduct; that debt may not be discharged. This includes debts incurred immediately before filing bankruptcy, like maxing out your credit cards without the intent to repay.
Certain financial obligations persist even after a successful bankruptcy filing. This may surprise people who don’t enlist the help of an experienced attorney familiar with bankruptcy law. Call 480-568-1327 to get professional advice from our Mesa bankruptcy lawyers.
What Can a Mesa Bankruptcy Attorney Do for You?
This complex legal process requires careful attention to financial details, eligibility requirements, and court procedures. We help our clients achieve a smooth and successful case by helping them with the following.
Assessing Your Eligibility
Our lawyers will evaluate your financial situation to determine whether or not you qualify to file Chapter 7 bankruptcy. We will conduct a means test analysis to compare your income against Arizona’s median income limits. If you don’t qualify based on your financial situation, we can help you explore alternative options such as Chapter 13 bankruptcy and debt settlement.
Asset Protection Under Arizona Arizona Exemptions
Arizona’s specific bankruptcy exemptions allow you to protect your property, like your home, car, and personal belongings. We will ensure you maximize these exemptions so you don’t lose valuable assets you could have otherwise kept.
Let Us Handle the Paperwork and Filing
Filing bankruptcy requires extensive financial disclosures and accurate documentation. We will prepare and submit all of the required forms to the U.S. Bankruptcy Court, ensuring accuracy and compliance with Arizona bankruptcy laws.
Errors in this paperwork can lead to delays, dismissal, or even accusations of fraud. Resolvere Law PLLC will help you prevent these issues from happening.
Court and Creditor Meetings
Once you file, you must attend a 341 Meeting of Creditors, where a bankruptcy trustee will ask you questions about your finances. We will help you prepare for this meeting and represent you to ensure creditors do not overstep their legal boundaries. If a creditor challenges your case, we will defend you during court hearings and fight for your rights.
Stop Creditor Harassment and Collections
As soon as you file for bankruptcy, an automatic stay takes effect, stopping wage garnishment, foreclosure, and creditor harassment. We ensure creditors comply with this stay and prevent them from illegally contacting you.
Guide You Through Debt Discharge
We will ensure all eligible debts are properly discharged, providing you with a fresh start and financial freedom. With aftercare from Resolvere Law PLLC, you can rebuild your credit and avoid financial pitfalls in the future.
Are There Alternatives to Bankruptcy?
Bankruptcy is a powerful tool for debt relief, but it may not be the best option for everyone. Depending on your financial situation, there may be alternatives that are better suited to your unique situation, allowing you to obtain debt relief without the long-term impact of filing for bankruptcy. Our knowledgeable bankruptcy attorneys will assess your situation and help you with the best options for you, which may include one or more of the following.
Debt Settlement
This involves negotiating with creditors to reduce the total amount you owe them. It often works best for unsecured debts, like credit card debt and medical bills. While you may suffer a negative impact on your credit score, it is less severe than filing for bankruptcy.
Debt Consolidation
Debt consolidation allows you to combine multiple debts into a single loan with a lower interest rate. This helps you manage payments and may provide you with low monthly payments. You must have good credit to qualify for favorable loan terms.
Credit Counseling and Debt Management Plans
There are nonprofit credit counseling agencies that can help you create a structured repayment plan. Credit counselors may negotiate a lower interest rate and may even be able to have some fees waived with creditors. A Debt Management Plan (DMP) does not discharge debt but instead offers more manageable payments.
Loan Modification and Forbearance
If you are a homeowner and you are struggling with mortgage payments, you may qualify for a loan modification to lower your monthly costs. Some lenders may offer forbearance plans, which temporarily reduce or pause payments. This can help avoid forbearance and give you a breather, allowing you to get back on your feet.
Bankruptcy isn’t right for everyone. There are options you may be able to use before filing bankruptcy that you were unaware of. By working with our best bankruptcy lawyers, you can find what options you have. If bankruptcy is the best way to get your financial freedom, then Resolvere Law PLLC will help you through the process.
How Does Bankruptcy Affect Your Future?
While filing for Chapter 7 can provide you with much-needed financial relief, it does come with some long-lasting effects that you should carefully consider. While you may benefit from eliminating overwhelming debt, your credit score will suffer, your financial opportunities may become limited, and your future planning may be impacted.
When filing, you may face the following effects in the future.
Your Credit Score Will Drop
Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date, and your credit score will drop. The extent of the damage to your credit score will depend on your starting score and financial history.
While there will be an immediate impact on your creditworthiness, many people actually see credit score improvements within a few years of filing by managing their finances responsibly.
Loans and Credit
It will probably be difficult to qualify for lines of credit, auto loans, and mortgages after filing. You may be able to qualify for a secured credit card, which can help you rebuild credit.
Employment
While most employers don’t check credit reports, some industries, such as finance and government employment, may disqualify you because of your bankruptcy. You should be ready to explain your situation just in case a potential employer asks.
Rental Issues
Most landlords will review your credit, and they may hesitate to rent to you if you have a bankruptcy in your credit history. Some landlords may overlook bankruptcy if you are able to prove you have a stable income and a great rental history.
Resolvere Law PLLC will work with you from the first step to the last, including understanding the issues you may face in the future. With our help, you can rest assured that the good will far outweigh the bad.
When Should You Contact a Bankruptcy Attorney?
We want to help you move forward with your life. Whether it is Chapter 7 or Chapter 13 bankruptcy, debt settlement, or any other form of debt relief, you can count on Resolvere Law PLLC to find the best option for you. Our approach isn’t one-size-fits-all; we understand that each case is different.
The best time to call our law firm is now. Waiting can result in more expenses, more stress, and delays. Call 480-568-1327 now for your FREE consultation. At Resolvere Law PLLC, our clients expect results, and we deliver!
