A Chapter 7 bankruptcy is a way for people who are overwhelmed with debt to get a fresh start. It is a process where the debts are liquidated (discharged) which relieves the debtor of some or all their debts. The debtor must meet the qualifications in order to file for a Chapter 7 bankruptcy (this includes satisfying the means test). During the Chapter 7 process, the qualified debtor’s non-exempt assets may be collected by the bankruptcy trustee who may sell the assets with the net proceeds then distributed to the creditors. As a Chapter 7 Bankruptcy Attorney with offices in Tucson and Oro Valley, Deana can help to take the stress off of you by helping you to become debt-free.
Most debtors in Chapter 7 cases have large credit card debt and other unsecured debts with few assets. For most of these cases, working with a Chapter 7 bankruptcy attorney is the best way to eliminate these debts. However, certain debts, such as alimony, child support, student loans, fraudulent debts, taxes and other certain items cannot be discharged in a Chapter 7 bankruptcy (see Arizona Non-Dischargeable Debts).
Once the Chapter 7 is filed with the court, an automatic stay will be put into effect. This means that your creditors will be notified that they must immediately stop contacting you regarding your debt. The automatic stay immediately stops most civil lawsuits filed against you and most collection actions by creditors, collection agencies, or government entities.
The automatic stay is a legal protection that immediately stops most actions against your property, and lawsuits filed against you. The automatic stay immediately stops creditor calls, evictions, wage garnishments, utility disconnections, and foreclosures.
Call Deana, your local Chapter 7 Bankruptcy Attorney today for your free consultation.
Arizona law allows residents to claim certain property and/or a certain amount of equity in property (such as in a home and vehicle) to be exempted from being liquidated as part of their bankruptcy. This means that you will be able to keep this exempted property after you file bankruptcy. To be eligible for the Arizona exemptions, you must have lived in Arizona for all of the two years before the bankruptcy filing.
An individual with primarily consumer debts (debt incurred primarily for personal, family, or household purposes) must satisfy a “means test” in order to file for Chapter 7. (There is an exception for disabled veterans - if you are a disabled veteran and your debts were incurred primarily while you were on active duty or performing a homeland defense activity, you are not required to complete the means test to qualify for Chapter 7 bankruptcy.)
The first part of the means test requires you to determine whether your annualized current monthly income is more than the Arizona state median monthly income for a family of your size. If your current monthly income (which is averaged using your last six months actual income from all sources) is below the state’s median income level, then you satisfy the means test.
Even if your income exceeds the state’s median income, you may still pass the means test.
Deana is a Chapter 7 Bankruptcy Attorney in Tucson.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. See Title 11 Bankruptcy Relief (11 U.S.C. §528(a)(3).
Chapter 7 Bankruptcy Attorney Serving all of Pima County,
including Tucson, Marana, Oro Valley,
and Catalina, as well as Saddlebrook (Pinal County)
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