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Maricopa County Chapter 7 Bankruptcy Attorney

Q: What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is designed for people who cannot repay their debts. It allows debtors to eliminate most of their unsecured debts, such as credit card bills, medical expenses, and personal loans. The process involves selling non-exempt assets with the proceeds distributed to creditors. But many assets can be exempt under Arizona law, so you may be able to keep essential property, like your home, car, and personal belongings. Understanding the differences between Chapter 7 and Chapter 13 bankruptcy is important when choosing the debt solution that's right for you. While Chapter 7 provides a quick resolution, it may involve liquidating certain to cover outstanding debts. On the other hand, Chapter 13 bankruptcy allows you to keep more assets, but it requires a 3 to 5-year repayment plan to pay off debts.

Q: What Types of Property Are You Allowed to Keep in a Chapter 7 Bankruptcy?

Exemption limits are used to determine which assets you can retain during a Chapter 7 bankruptcy in Arizona. These limits specify the maximum value of property that can be protected under state law. For example, the homestead exemption allows you to protect up to $400,000 in equity in your primary residence. If your home equity exceeds this amount, the excess could be subject to liquidation. Other exemptions also have specific limits. For example, up to $15,600 in equity in a vehicle is protected, but any value beyond that may need to be surrendered. Personal property exemptions, such as household goods and clothing, also have valuation caps that must be adhered to.

Contact a Maricopa County bankruptcy lawyer at Hilltop Law firm at (602) 466-9631 to discuss Chapter 7 bankruptcy.

Lawyer Offers Chapter 7 Bankruptcy Assistance for a Fresh Start in Maricopa County

Maricopa County has tons of enjoyable activities for you and your family. For example, you can watch a Diamondback game at Chase Field, check out the Scottsdale Fashion Square, or visit the Chandler Museum. Unfortunately, you can reach a point where debt becomes overwhelming, and enjoyable activities are no longer enjoyable. It could feel like there's no relief in sight. However, the law fortunately offers Chapter 7 bankruptcy. This solution can make a big difference for people in Maricopa County.

For over 10 years, bankruptcy attorney Cy Hainey at Hilltop Law Firm has been helping people in Maricopa County get back on their feet financially. Cy will review your situation and go over your options. And if you choose Chapter 7 bankruptcy, Cy will make sure all your paperwork is filed correctly. He'll also take steps to help you get the best deal.

Call (602) 466-9631 to schedule a FREE consultation with Cy Hainey today. We will be happy to meet with you in our office or via a free Zoom conference using your cell phone, tablet, or computer.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is designed for people who cannot repay their debts. It allows debtors to eliminate most of their unsecured debts, such as credit card bills, medical expenses, and personal loans. The process involves selling non-exempt assets with the proceeds distributed to creditors. But many assets can be exempt under Arizona law, so you may be able to keep essential property, like your home, car, and personal belongings.

Understanding the differences between Chapter 7 and Chapter 13 bankruptcy is important when choosing the debt solution that's right for you. While Chapter 7 provides a quick resolution, it may involve liquidating certain to cover outstanding debts. On the other hand, Chapter 13 bankruptcy allows you to keep more assets, but it requires a 3 to 5-year repayment plan to pay off debts.

How To File for Chapter Bankruptcy in Maricopa County

Filing for Chapter 7 bankruptcy in Maricopa County involves the following steps. Understanding these steps can help you navigate the process more smoothly:

Consultation: Begin with a consultation with a Maricopa County bankruptcy attorney to assess your financial situation and determine eligibility.
Credit Counseling: Complete a court-approved credit counseling course within 180 days before filing.
Document Preparation: Gather all necessary financial documents, including income statements, tax returns, and a list of assets and liabilities.
File Petition: Your lawyer will help you file the bankruptcy petition and accompanying schedules with the Arizona bankruptcy court.
Automatic Stay: Once filed, an automatic stay goes into effect, halting most creditor actions.
341 Meeting: Attend the 341 meeting of creditors, where you will answer questions about your financial situation under oath.
Debt Discharge: If all requirements are met, the court will issue a discharge order, eliminating eligible debts.

What Is an Automatic Stay?

An automatic stay is a court order that goes into effect as soon as you file for Chapter 7 bankruptcy, immediately halting most collection activities. This legal provision is designed to provide debtors with temporary relief from creditors, creating breathing space while they reorganize their finances. An automatic stay can shield you from the following types of creditor activities:

Foreclosures: If you're at risk of losing your home, the automatic stay can temporarily halt foreclosure proceedings, giving you time to explore your options.
Evictions: The stay can delay eviction processes, providing you a window to find alternative housing or negotiate with your landlord.
Wage Garnishments: Automatic stays stop wage garnishments, allowing you to keep your full paycheck while you navigate the bankruptcy process.
Utility Disconnections: If you face the threat of utility shut-offs, the stay can prevent disconnections, ensuring you maintain essential services.

Dischargeable Debts in a Chapter 7 Bankruptcy

Chapter 7 bankruptcy provides the opportunity to eliminate many types of unsecured debts, offering a fresh start for individuals struggling with financial burdens. By eliminating these debts, Chapter 7 bankruptcy allows you to regain financial stability. Types of debt that may be discharged in Chapter 7 bankruptcy include:

Credit Card Debt
Medical Bills
Personal Loans
Utility Bills

Non-Dischargeable Debts in a Chapter 7 Bankruptcy

While Chapter 7 bankruptcy can eliminate many unsecured debts, certain obligations remain non-dischargeable. These debts must still be paid even after the bankruptcy process is complete. Examples of non-dischargeable debts include:

Alimony and Child Support: Family support obligations are not dischargeable, ensuring ongoing financial support for dependents.
Student Loans: Generally, student loans are not discharged unless you can prove undue hardship, which is a stringent and rarely met criterion.
Recent Taxes: Federal, state, and local taxes incurred within a few years of filing for bankruptcy typically cannot be discharged.
Legal Fines and Penalties: Fines or penalties owed to government agencies, including traffic tickets and criminal restitution, are non-dischargeable.
Debts from Fraud or Malicious Acts: Obligations arising from fraudulent activities, embezzlement, or malicious injury to another person or property are also not dischargeable.

What Types of Property Are You Allowed to Keep in a Chapter 7 Bankruptcy?

Exemption limits are used to determine which assets you can retain during a Chapter 7 bankruptcy in Arizona. These limits specify the maximum value of property that can be protected under state law. For example, the homestead exemption allows you to protect up to $400,000 in equity in your primary residence. If your home equity exceeds this amount, the excess could be subject to liquidation.

Other exemptions also have specific limits. For example, up to $15,600 in equity in a vehicle is protected, but any value beyond that may need to be surrendered. Personal property exemptions, such as household goods and clothing, also have valuation caps that must be adhered to.

Speak With a Maricopa County Chapter 7 Bankruptcy Attorney Today

A Chapter 7 bankruptcy lawyer is essential in guiding you through the bankruptcy process. Cy Hainey will represent you in court, manage communications with creditors, and negotiate on your behalf to help you achieve the best possible outcome.

You don't have to face these challenges alone—speak with our Chapter 7 bankruptcy lawyer in Maricopa County today. Call Hilltop Law Firm at (602) 466-9631 for a free consultation today.