Bankruptcy in Mesa, AZ

Bankruptcy can seem like failure to residents in Mesa. But it can actually be a viable strategy to fend off creditors and keep your business afloat. If you are facing financial distress in Mesa, bankruptcy may be the path forward for you. And it may be in your best interest to have an experienced Mesa attorney help guide you through the process.

Types of Bankruptcy in Mesa, Arizona

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Mesa, AZ to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

U.S. District Courts have jurisdiction when it comes to bankruptcy law. If you are filing for bankruptcy you will have to file with the U.S. Court for the District of Arizona.

`Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Mesa  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

A Means Test is required before Mesa residents can file chapter 7. This test establishes that your income does not exceed the median for the state and therefore keeps you in a certain filing bracket. In addition, you will also have to complete credit counseling as part of your bankruptcy process. The U.S. Department of Justice posts an approved list of entities that allow you to complete your counseling.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

According to the U.S District Bankruptcy Court of Arizona, there are several forms that must be completed and filed before you can receive protection under Chapter 11. These include

  • Chapter 11 Plan Forms
  • Chapter 11 Operating Reports
  • Chapter 11 Disclosure Statements

All of these forms are designed to help you establish your timeline for proceeding under Chapter 11.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Mesa, AZ after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

The U.S. District of Arizona confirms that Mesa residents are able to file for Chapter 13 bankruptcy, however, they will be required to file a Chapter 13 plan with the court. This plan must be fully approved by the court before Chapter 13 can move forward. This plan must contain details of how you plan to pay back your creditors in payments. Remember, under Chapter 13, a Mesa resident only has 3 to 5 years to pay what is owed.

The Bankruptcy Process in Mesa, Arizona

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Mesa to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

The Arizona State Legislature lays out detailed information about bankruptcy exemptions for those living in Mesa. For example, there is a homestead exemption of up to $250,000 for those filing bankruptcy if the home is your primary residence. There are also exemptions for jewelry, domestic pets, and food and fuel for up to 6 months.

If you find yourself facing bankruptcy in Mesa, it may be your best option to contact an experienced attorney to help you navigate this process.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Mesa, Arizona Lawyer

Hiring a local Arizona bankruptcy lawyer during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Arizona attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Mesa can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Arizona state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

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