A General Chapter 7 Bankruptcy Process

Posted on September 6, 2012 by Staff Writer

A Chapter 7 bankruptcy is a particular kind of bankruptcy which tries to eliminate debts by selling off assets like cars, clothing and the like. Every state has different exceptions for assets which cannot be used to pay off debts, as a starting point when considering filing for a Chapter 7 bankruptcy. It will also be beneficial to know what the process of bankruptcy will entail.

The first step is to fill out a petition for bankruptcy fully and completely. You will need a clear record of all creditors owed, all expenses and incomes, including all personal assets and the exceptions appropriate to the assets you hold. This finished petition must accompany a certificate showing the completion of a debt counseling program. Essentially, this certification teaches alternatives to filing for bankruptcy. It is a requirement of the federal bankruptcy law, which allows you to file your petition for bankruptcy. Verify that the certificate you are seeking is from an authorized service, otherwise you will waste time and money.

At that point, there will be notification from the bankruptcy trustee, who is the court-appointed official overseeing your bankruptcy. This notification will ask for you to supply additional documentation such as automobile titles, bank account statements, and tax returns. There will also be a notice that will require your attendance at a 341 meeting. A 341 meeting will require you to truthfully answer questions posed by your trustee and your creditors. You will need to obtain a second certificate to verify that you received credit counseling. This certificate must be filed with the clerk’s office within 45 days of the 341 hearing.

If everything is done on time, then the petition will be filed within 3 months from the 341 meeting for your debts to be discharged . This does not finalize your filing because the trustee will have to completely analyze the bankruptcy information. At that point, the trustee will make the final determination on your case. If you have looked into your other options, but bankruptcy seems like your only option, please contact a qualified Phoenix bankruptcy attorney today.

AMR to File for Bankruptcy

Posted on June 30, 2012 by Staff Writer

AMR. Corp. (AAMRQ), parent to the third-largest U.S. airline American Airlines announced today that it would seek to extend its right to file a bankruptcy reorganization plan by three months. Efforts to secure $315 million in cost concessions have been slowed by a pilot’s union vote on the matter. The extension request may come as soon as next week according to Bloomberg BusinessWeek.

Union leaders agreed to let members vote on the cost concessions this week, but balloting will not end until Aug. 8. The union is required to take six weeks to brief members before voting on the contract. That timeline was not considered by AMR in its original petition, or in New York Bankruptcy Judge Sean Lane’s ruling that AMR void existing contracts by today.

The extension of the deadline from Sept. 28 to Dec. 27 means the company will likely miss AMR Chief Executive Officer Tom Horton’s goal of exiting bankruptcy by 2012. AMR’s plan calls for nearly half of the proposed $2 billion in annual spending cuts to come from labor costs. Judge Sean Lane has delayed ruling on whether American can reject contracts of stock clerks, flight attendants and mechanics until August 15, after the pilots vote.

The extension request will also delay a possible takeover by US Airways. While a formal merger request to AMR creditors has not yet been made, the Tempe, Arizona based airline has already secured agreements with all of American Airline’s unions that would take affect if the airlines combined. The company has also been building support for its plan, which cannot be offered until AMR’s exclusivity rights end, with AMR’s creditors.

If you or your company is considering filing for bankruptcy, you need the best legal representation possible. Contact a caring and qualified Arizona bankruptcy attorney for a consultation. They will help guide you through the legal process and get you started on the path to financial recovery.

What Is Bankruptcy?

Posted on March 14, 2012 by Staff Writer

Bankruptcy is a legal means of eliminating or repaying debts through the federal court system. Bankruptcy cases are exclusively handled in federal courts, and never take place within the state court system.

Individuals most commonly file for either Chapter 7 or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, the debtor is required to sell all or some of their assets to back pay their creditors. After this is done, they are relieved from their debts. In Chapter 13 bankruptcies the debtor arranges a payment plan through the bankruptcy court in order to pay off some of all of their debts.

Bankruptcy proceedings are initiated by filing a petition with the U.S. Bankruptcy Court. The debtor is then required to complete several forms and provide detailed documentation regarding their income and debts. For the bankruptcy to be approved, the bankruptcy court will need to determine that the debtor’s income is insufficient to pay your debts (this is called the “means test.“) You will also need to attend a credit counseling class.

Filing for bankruptcy is very complex, and even a small mistake or oversight could result in major delays or problems. If you are considering filing for bankruptcy in Arizona, it’s best to consult an experienced Glendale bankruptcy lawyer. An attorney who concentrates their practice on bankruptcy can answer your questions and guide you through the process. Although there are can be some downsides to choosing to file for bankruptcy, the impact of bankruptcy may not be as bad as you think. Bankruptcy is the best choice for many people who are drowning in debt. Don’t hesitate to contact a Glendale, Arizona, bankruptcy lawyer to discuss if it’s the right decision for you.