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.

Bankruptcy Not Only for the Average Joe

Posted on July 30, 2012 by Staff Writer

After the annual National Football League’s draft season, it is reported that an estimated 200 college athletes will secure contracts worth millions of dollars. Yet, in as little as five or ten years, these same athletes may become bankrupt.

This phenomenon is not limited to any specific group of athletes, but basketball and football players seem to file bankruptcy in the highest numbers. Sports Illustrated set forth estimated numbers (in 2009) of 78% of NFL players and 60% of NBA players were experiencing financial strain between two (NFL players) and five (NBA players) years of retiring. Exactly how does this happen?

Although there are several reasons for this occurrence, one of the contributing factors seems to be a result of unsound financial advice. The new millionaires become magnets for so called “advisors” who may not actually be experts in handing financial matters. Also, marriages and extramarital affairs contribute to huge income losses for athletes.

Athletes receive their pay early in their careers and there is a marked lack of the same cash flow after retirement or as the athlete ages. Unwise money management from the beginning can create bankruptcy in later times.

The average person who files bankruptcy may not have the same status of financial high points as these professional athletes, but they face financial mishaps in a similar manner. The Supreme Court set forth the definition that bankruptcy “gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” As such, bankruptcy is an available tool to help alleviate financial burdens and learn from past missteps to plan for a successful future. Contact a compassionate Arizona bankruptcy lawyer today to begin your new life.

The Credit Counseling Requirement in Bankruptcy

Posted on March 20, 2012 by Staff Writer

Under the new Bankruptcy Law of 2005, which became effective in October of 2005, it is now necessary for all persons filing a Chapter 7 or Chapter 13 Bankruptcy Petition to obtain what are called “Counseling Certificates”.

The specifics of the requirement are that everyone filing a Chapter 7 or Chapter 13 Bankruptcy Petition must obtain one Counseling Certificate before and one Counseling Certificate after the Bankruptcy Petition is filed.

The reason for the new law pertaining to the Counseling Certificates is to help people learn how to better budget their finances and learn more about options other than bankruptcy.

The Counseling Certificates must be obtained from an accredited counseling organization.

It usually takes about 45-90 minutes to complete the first Counseling Certificate which can be done in person, by phone, or onlne.

Normally a fee is charged for the Certificates unless the person cannot afford the cost. If a person cannot afford the cost, a waiver can be obtained.

Remember, once the approved Counseling Certificate is obtained, it is valid for 180 days. If a person fails to file a petition within the 180 of obtaining the Certificate then the Certificate will expire and a new one will have to be obtained.

It is also necessary to obtain a second Counseling Certificate within 45 days of having the creditors’s hearing or what is called the “341 Hearing”.

The 341 Hearing normally takes place about 30 days after filing the Bankruptcy Petition.

The second or Post-Petition Filing Certificate provides the person with supplemental information that was learned from the Pre-Petition Filing Certificate and takes a little more time to complete compared to the Pre-Petition Filing Certificate.

From what clients have told me, I have learned that what is learned through the Counseling courses is valuable, usable and practical information. If you have questions contact an Arizona Bankruptcy Attorney today.