The Bankruptcy Process in Arizona

When considering filing for bankruptcy, there are two types to consider. In Arizona, you may qualify for either Chapter 7 or Chapter 13 bankruptcy. Working with an experienced legal team will help you determine which type of bankruptcy filing is right for you.

What are the Two Types of Bankruptcy in Arizona?

  • Chapter 7
  • Chapter 13

Defined: Chapter 7 Bankruptcy

Chapter 7 is the most common type of bankruptcy, wherein the individual filing has debt greater than their available assets. In this case, assets can be sold off to pay your debt, either wholly or partially. By filing Chapter 7 bankruptcy, you would completely eliminate your debt. Upon filing:

  • An automatic stay will be placed on your accounts, keeping creditors from pursuing you any further.

In Arizona, there are potential exemptions to this filing that may protect your most important assets, like your home. After filing this type of bankruptcy, you would have to wait eight years to file another Chapter 7 bankruptcy. You may, however, be able to file for Chapter 13 bankruptcy within the eight year waiting period.

Defined: Chapter 13 Bankruptcy

Chapter 13 bankruptcy, on the other hand, is a form of bankruptcy that allows you to reorganize your debt rather than liquidate (having to sale your assets) it. Also known as the wage earner’s plan, this type of bankruptcy filing may be right for you if you make a substantial income. Chapter 13 allows you to pay some of your debts back, after paying for your regular bills, by setting up a system of payments to be made towards your debt. In Arizona, Chapter 13 can allow you to keep non-exempt property that would otherwise be liquidated under Chapter 7. Filing this type of bankruptcy would:

  1. Stop any pending foreclosure processes or wage garnishments
  2. Keep creditors from harassing you.

In Arizona, determining which type of bankruptcy filing is right for you will require consideration of a number of factors.

Next Steps?

Unsure which selection is right for you? Call or email our team today for a free bankruptcy consultation and we will help you make an educated decision about which path is right for you (or maybe bankruptcy isn't the option - we can help you determine that as well)!

Give our experienced legal team a call today to help guide you through the process.