Bankruptcy

Bankruptcy as a Foreclosure DefenseBankruptcy Chapter 7 Services for California and Arizona Residents.  In some circumstances, it may be in a persons best interest to file for Chapter 7 or Chapter 13 bankruptcy.  A BK filing creates an “automatic stay” that all creditors must honor.  In some cases, borrower are seeking to “lien strip” second mortgages or rescind their loans through Bankruptcy.

The following is a general overview of the process for filing bankruptcy in the State of Arizona.  Additional steps may be required depending upon the nature of your case.  Please consult an Arizona bankruptcy attorney.

  1.  Meet with your Attorney to discuss your case.  Basically an Arizona bankruptcy lawyer will want to review all of your finances, your debts, your income, and see if you qualify for filing a chapter 7 Bankruptcy in Arizona.  This meeting will also explore other options you may want to investigate besides bankruptcy.
  2. If you make the decision to file for Chapter 7 Bankruptcy in Arizona, each party seeking to file (you may want to file jointly for bankruptcy protection) must undergo pre-filing credit counseling.   We can set you up with a course to help you get the counseling you need before the Chapter 7 bankruptcy petition is filed.
  3. Preparation of the Chapter  7 bankruptcy petition.  This involves setting forth all of your debt , income and other information that is required for the Chapter 7 BK filing.  ALL DEBTS AND ALL INCOME MUST BE FULLY DISCLOSED.  DO NOT TRY TO HIDE ANYTHING OR IT MAY COME BACK TO HAUNT YOU.  You must all list ALL of your creditors so that they can be provided with notice of your Chapter 7 BK filing in Arizona.
  4. After a review for accuracy is done, and after the credit counseling is complete,  your CHAPTER 7 BANKRUPTCY PETITION CAN BE FILED WITH THE ARIZONA BANKRUPTCY COURT.
  5. Stay of Creditors in Arizona.  After you file your bankruptcy petition, your Creditors will be notified of your pending Chapter 7 bankruptcy petition, and they will no longer be permitted to contact you.  If by chance they accidentally contact you, inform them that you are in Chapter 7 BK protection, and that they should contact your attorney to discuss (assuming of course you hired an Arizona BK ATTORNEY to handle your chapter 7 BK filing.
  6. Immediately after you file your chapter 7 BK petition, you will need to do the post-filing credit counseling (again, all parties filing for BK must pay the fee and undertake the counseling).
  7. Within roughly 30-40 days of filing your CHAPTER 7 BANKRUPTCY PETITION IN ARIZONA, YOU WILL HAVE TO ATTEND A “MEETING OF CREDITORS” WHICH IS OPEN TO ANY CREDITOR THAT MAY WISH TO APPEAR.  At the creditors hearing in Arizona BK, you will have to take an oath to tell the truth , and will have to answer questions from the Trustee.  You will need to bring with you two forms of identification (ex. Social security card, driver’s license, passport, etc.)
  8. Assuming all goes well, and no creditors object to your filing Chapter 7 Bankruptcy filing, your non-secured debts will be discharged (ex. Credit cards, medical bills, personal debts, etc.).  The discharge may happen roughly 60-120 days following the creditors hearing.

There are many different issues that may arise, and these will be discussed in other blog posts on this BKAttorneyS (BK Attorney Steve) website.

BASIC OVERVIEW OF THE CHAPTER 7 BANKRUPTCY PROCESS IN ARIZONA