You may choose from different types of bankruptcy to file for depending on your financial situation. For individuals who are under mounting debt and are unable to pay them off, they may opt to file for a Chapter 7 bankruptcy. Non-exempt assets are liquidated and used to pay the debt incurred. Most unsecured debt is discharged giving the debtor the opportunity for a fresh financial start.
Generally, a Chapter 7 bankruptcy is relatively straightforward. Most time will be spent filling out forms and completing paperwork. It would be highly beneficial if you seek out the expertise of a bankruptcy lawyer since this could prove to be a daunting task to some people.You will then be required to take an
Arizona means test to qualify to file for a Chapter 7 bankruptcy. Some of the steps you would need to go through in the Chapter 7 filing process are listed below:
- Undergo credit counseling. Six months before filing your petition, you are required to go through credit counseling sessions with an agency that has been approved by the US Trustees office. This is mandatory and the court will dismiss your case if you have not met this requirement.
- File petition. Bankruptcy petition, a number of schedules listing financial information, and a form on which you list your income and expenses, indicating that you can pass the means test are some of the documents and forms you would need to fill out.
- A trustee is appointed. The trustee chosen by the court would then take over. He or she would review your paperwork and would take your non-exempt assets for distribution to the creditors involved.
- Creditors gather for a meeting. In the meeting, you are placed under oath to answer some questions from your creditors and trustee. These meetings are typically short.
- Confirmation of your Chapter 7 eligibility. After the trustee gathers all pertinent information and documents, the court will then decide if you may take the protection provided by Chapter 7. You may file for a Chapter 13 bankruptcy instead if the court decides against your case for some reason.
- Any non-exempt assets are handled. The trustee looks over your properties which are not exempt from selling.
- Secured debts that cannot be discharged are sorted out. The debt which are secured and cannot be discharged will be addressed through immediate payment, giving back to the creditor or agreeing to pay for it in the future.
- Complete a debtors education course for financial management.
Receive the discharge. Within three to six months, the court will send the bankruptcy discharge through mail. Most of your unsecured debt will be eliminated or reduced in the discharge and the case will be declared closed.
You should be prepared for a series of steps when filing for
Arizona Bankruptcy.Having a lawyer by your side who is experienced with the whole filing process may prevent mistakes that could cost you the confirmation and approval in court.
