Bankruptcy: Common Questions

Arizona Bankruptcy Lawyer

There are certain questions that we are asked that are briefly answered below. For your specific questions about your personal financial situation, filing bankruptcy and bankruptcy alternatives, it is important that you contact an Arizona bankruptcy lawyer from Price Law Group.

How do I find out if I qualify for bankruptcy?

This is done through taking the "means test". This will determine eligibility for Chapter 7 or Chapter 13.

What are the different types of bankruptcy?

Bankruptcies are called by their "chapter" in the federal bankruptcy code.  Chapter 7 is liquidation bankruptcy and is for those who are suffering under extreme financial stress, and have no way to pay their bills. In this form of bankruptcy, your consumer debt is discharged.  Chapter 11 bankruptcy is used by corporations, businesses and partnerships. This form of bankruptcy allows the business to pay off outstanding debt, including IRS debt in many cases, over a period of years.  Chapter 13 bankruptcy can be used for individuals who don't wish to file Chapter 7, are employed and making a steady income (either as an employee or self employed).  The individual has the opportunity to pay off back debt over a period of 3 - 5 years. Determining which form of bankruptcy is right for you is an important matter, and the sooner you move forward, the more quickly you will experience the relief from the anxiety of overwhelming debt.

What if I am being harassed by creditors? Can anything be done?

Creditors, if they overstep the bounds of law, can have a civil action filed against them. We can evaluate your situation and advise you if you have a case against a creditor and if they have violated the law and committed creditor abuse.

Will my credit card debt be eliminated in bankruptcy?

Consumer debt is discharged in Chapter 7 bankruptcy. One common bankruptcy myth that should be noted is that if you are filing bankruptcy, it is okay to run up your credit cards. In fact, it is only the debt that was incurred 90 days prior to filing that will be discharged. Never get your information about bankruptcy from friends, associates or other sources - talk to a legal professional from our firm for accurate information in your case.

Will I lose my home?

In most cases when our legal team acts quickly, our clients do not lose their homes if they wish to keep them. Many recent home purchases took place at the top of the market, and the home is now finances far above its current market value.  It may be necessary to find out if you have a right to legally contest the lender's action in a foreclosure defense, loan modification or resolve the matter in the bankruptcy process, with the potential of stripping the second mortgage if the value of the home has radically reduced.  We must evaluate each case individually in order to advise you how to manage the matter of your home.

Contact an Arizona Bankruptcy Attorney and get your specific financial situation evaluated and your questions answered.