Explaining Your Bankruptcy Options in the Phoenix Area
If you are trying to decide between chapter 7 vs. chapter 13 bankruptcy, or looking for a chapter 13 bankruptcy lawyer in Phoenix, you should know about your options for bankruptcy in the Phoenix area. Some aspects of bankruptcy law are specific to Arizona, and an experienced chapter 13 bankruptcy lawyer in Phoenix will know about these factors better than an out- of -state lawyer would.
Chapter 7 vs. Chapter 13 Bankruptcy in Phoenix
Chapter 7 bankruptcy is the type that many people think of when they think about bankruptcy. Chapter 7 bankruptcy wipes out nearly every kind of debt. However, your non-exempt property and possibly tax refunds, will be liquidated in order to do so.
Chapter 7 bankruptcy also involves a means test. In order to file for chapter 7 bankruptcy, you must have an income which is less than the median in Arizona, or rebut/disprove the presumption that even though your income exceeds the median family income, you nevertheless cannot file a chapter 13 as your disposable income is too low. This also affects chapter 13 bankruptcy applications, as those with a lesser income may be eligible for a shorter repayment plan period. Your chapter 13 bankruptcy lawyer in Phoenix can help you with this Arizona-specific calculation.
Phoenix Bankruptcy Exemptions
A chapter 13 bankruptcy lawyer in Phoenix may wish to discuss Arizona bankruptcy exemptions that include Phoenix bankruptcies. With few exceptions, including the amount of time you have been a resident of this state, You may only use state laws for exemptions, including doubling exemption amounts for some items if you are filing a joint bankruptcy with your spouse. Other exemptions include a portion of home or property, some personal property including animals, musical instruments, clothing, and wedding and engagement rings.
There is a long list of possible Arizona bankruptcy exemptions covering Phoenix claimants, so it is a good idea to talk about your specific situation with your chapter 13 bankruptcy lawyer in Phoenix.
Should you file a chapter 13 bankruptcy in Phoenix?
As there is one judicial district for all of Arizona, your chapter 13 bankruptcy lawyer from Phoenix can file anywhere in Arizona.
There is a bankruptcy court right in Phoenix, so you are sure to find a chapter 13 bankruptcy lawyer in Phoenix who has gone through that specific court system in the past.
Ask friends or family who have filed for bankruptcy if they have a recommendation for a chapter 13 bankruptcy lawyer.
If you’re not sure whether you should file chapter 7 vs. chapter 13 bankruptcy, contact a lawyer who can explain which type of bankruptcy would be more beneficial for your situation.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.