The Bankruptcy Process: How does it Work?

Arizona Bankruptcy Lawyer

How does the bankruptcy process work? In 2005, the federal government amended the bankruptcy law in order to restrict those who had too many assets from filing Chapter 7, or discharge of debt. Under current law, you are required to prove your eligibility by taking the "means test". This test evaluates your financial position for the past 6 months, and with a formula, will determine if you qualify for Chapter 7. If you have filed for bankruptcy within the past 8 years, you are not eligible to file again until the time elapses. You are now required to have credit counseling before filing for bankruptcy, through an agency accredited by the federal government. In many cases, the credit counselor also advises bankruptcy as there are few other options for many people and businesses in this country today.  An Arizona bankruptcy attorney from Price Law Group can assist you with the means test, as well as provide you with the list of potential credit counselors to get that requirement out of the way.

Filing for Bankruptcy in Arizona

It will be determined whether you are eligible for Chapter 7 or Chapter 13. If you have too many assets, you will not be eligible for "discharge of debt", but can file Chapter 13, which will allow you to pay off your outstanding obligations in one payment over a 3 - 5 year period. At the end of the payment period, your debt is discharged. In most cases, only a percentage of what you originally owed is finally paid. You will not longer owe any more at the end of the process.

The bankruptcy process takes approximately 4 - 6 months to complete. There are several appearances you will need to make and these are usually fairly quick. When we represent a client, we are there with them throughout the process and represent them at the meeting of creditors and through all the steps of bankruptcy. We take pride in our accomplishments for our clients, and our long term assistance to our clients over the years has led us to having extensive knowledge about every aspect of the bankruptcy process, whether for an individual, a family or for a business owner. We are trusted throughout the court system, and our cases usually move quickly through the system. We invite you to contact us as soon as possible to get started.

Contact an Arizona Bankruptcy Lawyer from our firm to get your bankruptcy filing into motion.