Phoenix Chapter 7 Bankruptcy Attorney
Our Arizona Law Firm Can Help You Find Debt Relief
Are you struggling to make your loan, mortgage, or car payment? When the
financial aspects of your life become too difficult to manage, it is essential
to learn about the options available to you to regain financial stability.
Chapter 7 bankruptcy may be a great option for you if you are facing:
As soon as you file, an automatic stay is put into effect, which prevents
creditors from taking further collection actions. Known as the liquidation
form of bankruptcy, this is a process that allows you to completely clear
away your debt and keep your exempt property. You can obtain a fresh financial
start in a relatively short amount of time.
Are You Eligible for Chapter 7 Bankruptcy?
To determine your eligibility for Chapter 7, and decide if this process
is right for you, the first step you should take is to speak with a
Phoenix bankruptcy attorney. The means test is a necessary evaluation of your income level compared
with others within your area. It assesses people's true need for significant
debt relief.
Due to the nature of Chapter 7 bankruptcy, it is most often appropriate
for individuals who can no longer keep up with their debt—however,
it is not always the solution for those with a regular income or those
with a lot of assets that they would rather not lose. If you have little
to no income, you may be a perfect candidate.
To determine whether or not you qualify for Chapter 7, you should have
your financial situation evaluated by a skilled bankruptcy lawyer in Phoenix.
They will be able to see whether or not you have enough debt to justify
filing or whether it would be better for you to file Chapter 13 and repay
it over time with a repayment plan.
If you are unsure of how this process will affect you, you should discuss
your financial situation during a
free case evaluation with our law firm.
What Types of Debts Can Be Discharged?
Under Chapter 7 bankruptcy, the following debts can often be discharged:
- Credit Card Debt
- Medical Bills
- Unsecured Loans
However, the following debts usually cannot be discharged:
- Student Loans
- Child Support / Alimony
- Unpaid Taxes
- Secured Loans
Will I Lose Everything That I Own?
For most people, the scariest part of Chapter 7 is the fear they will lose
everything. While liquidation is part of Chapter 7, it does not mean everything
will be taken away.
In fact, assets such as the following are often exempt:
- One motor vehicle
- Primary place of residence
- Life insurance policies
- Personal items such as clothing
The Benefits of an Automatic Stay
After you file, you will experience some immediate relief.
An "automatic stay" will go into effect, preventing creditors
from heckling you and trying to collect your debts. For the time being,
these creditors will not be legally allowed to garnish your wages, go
after your home or car or empty your bank account. This will buy you some
time to reassess your financial situation. After all, how are you supposed
to find a new job if you don't have a car or a house?
What to Expect After You File
When you file for Chapter 7, you are technically signing over your property
and debts to the bankruptcy court. You won't be able to sell your
property or settle your debts without the court's permission. However,
you will be allowed to do what you please with the income and possessions
you obtain after you file. The court acts through bankruptcy trustees
whose primary duty is to ensure that you pay the creditors as much of
what you owe them as possible.
They will go through your paperwork to see if there is any nonexempt property
that you can sell to pay off your debts. They may also go through your
financial transactions from the past year to determine if anything can
be undone to free up some of your property to apportion to your creditors.
Chances are, most of your property will be exempt from the bankruptcy
process because of its insignificance to your creditors.
A couple of weeks after you file, you will be summoned to bankruptcy court
for a "creditors meeting." Your appointed bankruptcy trustee
will helm the meeting and question you about your bankruptcy and all the
paperwork you filed. Typically, this will be the only time you will be
required to visit the courthouse.
How to Afford a Phoenix Bankruptcy Attorney
Watch this video to get some ideas of how you can afford an attorney!
Financial Guidance from Leonard V. Sominsky, ESQ., PC
Since 2000, our firm has strived to protect our clients' rights during
the bankruptcy process and help them pursue effective results. We can
help you understand what will be needed for the process, and recommend
taking a credit counseling course with an approved agency. In addition,
we can help you successfully complete the documents.
For assistance through the process from our Chapter 7 bankruptcy attorney,
contact our Phoenix debt relief law firm at your earliest convenience!