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AZ Bankruptcy Attorneys, Lawyers in Mesa Arizona
The Mesa Arizona bankruptcy attorneys at Bankruptcy Lawyers Mesa are experienced bankruptcy professionals and have years of experience evaluating personal and business bankruptcy options in Arizona. Our $0 Down Bankruptcy filings allows you to file for Ch. 7 Bankruptcy with no money down. Stop a garnishment! FREE case evaluation and initial debt consultation to all new customers.
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Bankruptcy in AZ – Lawyers Chapter 7 Overview
If filing for bankruptcy in Arizona is an opportunity for a debtor to emerge out of a financial crisis and start afresh, then Chapter 7 of the Bankruptcy Code is the way to achieve this end relatively faster. Chapter 7 is the type of bankruptcy that virtually wipes the slate clean of unsecured debt (credit cards, medical debt, non-secured personal loans and lines of credit, amounts owed on leases, amounts owed after vehicle repossessions and more). An individual or couple must qualify for Ch. 7 to get Ch. 7 relief. Our bankruptcy attorneys in Arizona are experienced professionals who will determine, not only if you are a candidate for chapter 7 debt relief, but also, given your current state of affairs, how it would impact you.
Garnishments and Levies
A Chapter 7 is one of the most effective ways to immediately stop garnishments. Garnishments can diminish your hard-earned income making it almost impossible for you to afford life’s basic necessities. By filing a Chapter 7 and stopping the garnishment, you will be able to use your income for more important necessities and start saving for your family’s future.
The Impact on Your Credit Score
Chapter 7 is one way for you to begin reestablishing your credit by reducing your debt to income ratio. With little or no remaining debt, lenders may feel that you will be better able to repay your debts in the future. Many people who file Ch. 7 buy homes within one year, or finance cars after discharge. Many discharged debtors receive solicitations for unsecured credit within a few months, so be careful. Bankruptcy will remain on your credit score for 10 years, but many find that they are back into an excellent credit score within 1 to 2 years time, after filing. Consult with a bankruptcy attorney in Arizona for more information.
Arizona Bankruptcy Attorney
Bankruptcy Lawyers Mesa, AZ has the bankruptcy attorneys Arizona residents and businesses have depended on for years, for assistance with Chapter 7 Bankruptcy throughout AZ including Mesa, Gilbert, Phoenix, and Chandler. Call us now and speak with a bankruptcy lawyer in Arizona or schedule a free consultation. (480) 800-0033.
CHAPTER 7 BANKRUPTCY FAQs
ANSWER: A Chapter 7 discharges most of your unsecured debts. Medical bills, credit cards, personal loans, and registration loans are among the debts that can be discharged in a Chapter 7. Some debts such as student loans and domestic obligations can’t be discharged. If you owe back taxes, they can be discharged if they meet certain requirements.
To complete a Chapter 7 Bankruptcy, there are a few steps you will have to complete. Either you or your attorney will need to draft and file your petition. You will need to take a credit counseling course online before your case is filed. After your case is filed, you will receive a letter from your trustee informing you of your court date and requesting additional documents. You must supply those documents and later attend your 341 Meeting of Creditors. You must take a second credit counseling course within 60 days of your 341 Hearing. If all those steps are completed, your case will be eligible for discharge 60 days after your hearing.
ANSWER: There are two ways to qualify for a Chapter 7 Bankruptcy: through your income level or by passing the means test. To see if you qualify based on your income level, the first thing you need to do is determine your family size. You will include your spouse and any minor children (exceptions apply) and include your spouse’s income as well. If the total income is below your state’s median for your family size, you automatically qualify for a Chapter 7. The median income level for a family size of one in Arizona is %51,388. It increases to $64,543, $70,428, and $85,403 for each family member you add. If you are above the median income, you may still qualify for a Chapter 7 through the Means Test.
ANSWER: The means test analyzes your income and expenses to determine if you should have spare income left at the end of each month to pay towards your debts. The court will average your last six month’s income to determine your currently monthly income. Mandatory deductions will be subtracted from your income, and other expenses deemed necessary and reasonable by the court. If the number you reach is low enough, you can still file a Chapter 7. Otherwise, you may be eligible for a Chapter 13 bankruptcy instead.
ANSWER: In a Chapter 7 bankruptcy, once you attend your 341 Meeting of Creditors, you simply wait 60 days until your case is eligible for discharge. In a Chapter 13, your debt will be reorganized into a monthly payment plan lasting 3-5 years. You aren’t required to repay your debt in a Chapter 7 except for in cases of fraud.
ANSWER: You will be able to keep your home in a Chapter 7 Bankruptcy if you don’t have more equity in the home than your state allows. In Arizona, the exemption limit for a house is $150,000. This doesn’t mean you will lose your home if it is worth more than $150,000. If you subtract the balance of your mortgage from the value of your home and it is less than $150,000, (in Arizona) your house will be exempt.
ANSWER: This depends on how your credit score is before your case is filed. If you have a medium to high score before you file, you may see a temporary dip in your score once you file. If you have a lower score, it may stay the same or even slightly increase upon filing. There are steps you can take to rebuild your credit score once your case is filed. If your attorney offers a $0 down payment plan, they may credit report those payments. Financing a new vehicle or opening a new credit card and making payments will increase your score. If you are unable to obtain a new credit card, you can opened a secured line of credit through your bank until your score improves enough to get a traditional credit card.
ANSWER: A Chapter 7 Bankruptcy will remain on your credit for 10 years. However, it will only be 2 years after your bankruptcy until you are eligible for a home loan. You should receive offers for new lines of credit (i.e., credit cards) once your case is discharged. You may be able to finance a new vehicle as soon as the day after you file your bankruptcy.