Maricopa County Bankruptcy Attorney
Speak with a Maricopa County bankruptcy lawyer if you are struggling with outstanding debt. Call (602) 466-9631 now.
Bankruptcy Lawyer Helps Maricopa County Residents Eliminate Debt
Maricopa County offers many fun things to do, like visiting the OdySea Aquarium in Scottsdale or taking a stroll through Jane Askew Memorial Park in Maricopa. But struggling with your bills can make it difficult to enjoy these activities. If you’re in such a situation, contact Hilltop Law Firm.
For over 10 years, bankruptcy attorney Cy Hainey has been helping people in Maricopa County achieve financial relief. Cy can provide legal assistance and advise you on the best strategies for eliminating debt, including Chapter 7 and Chapter 13 bankruptcy.
Call (602) 466-9631 to schedule a FREE consultation with our Maricopa County bankruptcy lawyer today. We offer easy Zoom consultations and are happy to assist with setting up your computer, tablet, cell phone or other device.
What Is Bankruptcy?
Bankruptcy is a legal process that provides individuals and businesses facing insurmountable debt with a way to eliminate or repay their obligations under the protection of the federal bankruptcy court. Essentially, it offers a fresh start for those overwhelmed by financial difficulties.
The two types of bankruptcy for you to choose from are Chapter 7 and Chapter 13:
- Chapter 7 Bankruptcy: Often referred to as liquidation bankruptcy, Chapter 7 involves the sale of non-exempt assets to repay creditors. It's typically suited for individuals with limited income and significant unsecured debt, like credit card bills and medical expenses. After the liquidation and distribution process, most remaining debts are discharged.
- Chapter 13 Bankruptcy: Also known as reorganization bankruptcy, Chapter 13 allows debtors to create a repayment plan to pay off debts over three to five years. This is ideal for people with a regular income who can manage to pay back some portion of their debts while keeping their assets.
Steps to Filing for Bankruptcy in Maricopa County
The first step in filing for bankruptcy is gathering all necessary financial documents, including income statements, tax returns, and a list of debts and assets. The next step is meeting with an experienced bankruptcy lawyer, who will review your options, including debt settlement, loan modification, Chapter 7, and Chapter 13 bankruptcy. If you choose bankruptcy, your attorney will file all the necessary forms with the U.S. Bankruptcy Court for the District of Arizona.
As soon as you file for bankruptcy, an automatic stay goes into effect, halting most collection activities against you. This can provide immediate relief from annoying phone calls, collection letters, wage garnishments, tax liens, and foreclosures. A trustee will be appointed to assist you through the bankruptcy process and report to the court on how you are meeting your obligations.
Key documents for a bankruptcy filing in Maricopa County include:
- Income Statements: This includes pay stubs, profit and loss statements for self-employed individuals, and any other sources of income.
- Tax Returns: Provide copies of your federal and state tax returns for the past two years.
- List of Assets and Liabilities: Detail all your assets, such as property, vehicles, and bank accounts, along with all debts, including credit card balances and loans.
- Monthly Living Expenses: Itemize your monthly expenses like rent, utilities, groceries, and transportation to demonstrate your financial situation accurately.
- Recent Financial Transactions: Include bank statements and records of any significant financial transactions over the last few months.
- Credit Counseling Certificate: Proof that you completed the mandatory pre-filing credit counseling course.
The Bankruptcy Abuse Prevention and Consumer Protection Act
The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) is a federal law aimed to prevent abuse of the bankruptcy system. It ensures that people filing for bankruptcy genuinely need financial relief.
One of the key provisions is the means test, which evaluates a debtor's income relative to the median income of their state. If a debtor's income exceeds the median, they may be required to file under Chapter 13 instead of Chapter 7.
BAPCPA also mandates credit counseling and debtor education courses, which must be completed before filing and before debts can be discharged. Additionally, the law imposes stricter documentation requirements, including proof of income, tax returns, and living expenses.
Understanding Liens and Levies
Liens and levies are legal claims used by creditors to collect debts. Understanding these mechanisms is crucial when dealing with financial difficulties. A lien is a legal claim against your property as security for a debt. Common types include mortgage liens, tax liens, and judgment liens. An example is if you fail to pay your mortgage. The lender can place a lien on your home, which gives them the right to foreclose if the debt remains unpaid. Another example is judgment liens that result from lawsuits where the court grants a creditor the right to take your property to satisfy a debt.
A levy allows creditors to seize your assets directly. This can include garnishing wages, withdrawing funds from your bank account, or taking possession of personal property. For example, the IRS frequently uses levies to collect unpaid taxes.
Settling Judgments and Debts
Settling judgments and debts outside the bankruptcy process can be a viable alternative for some debtors. Debt settlement involves negotiating with creditors to pay a reduced amount (typically less than the full balance owed). This can be done through a lump-sum payment or structured installments.
Creditors may be willing to settle for less to recoup some of their losses, especially if they believe the debtor might otherwise file for bankruptcy. Settlements can also be negotiated for judgments, potentially removing liens or halting wage garnishments.
A debt solution lawyer can negotiate with creditors, ensuring that settlements are legally sound and beneficial for your financial situation.
Meet with Our Experienced Bankruptcy Attorney in Maricopa County
At Hilltop Law Firm, we have all the right tools to help you settle your debt and get your life back on track financially. Lead attorney Cy Hainey has almost a decade of legal experience and two years of banking experience, so he can guide you through some of the most difficult challenges facing you and your family.
Call our Maricopa County bankruptcy attorney at (602) 466-9631 to learn more today. We will be happy to meet with you whenever you're ready.