Arizona Bankruptcy Attorney

Bankruptcy Lawyer Serving Clients in Arizona

Are you currently struggling with significant debt and thinking about filing for personal bankruptcy? Many Arizona residents grapple with debt, whether it’s from credit cards or unexpected medical bills. Consumer bankruptcy has helped many Arizona debtors get a fresh start and a handle on their debt.  Bankruptcy law is extremely complicated, so it may be a good idea to seek legal advice before filing. If you have questions about whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be right for you, it is important to reach out to an experienced Arizona bankruptcy attorney.  Bankruptcy is not always the right answer for everyone.  If you are considering filing a bankruptcy petition, a free consultation will help you decide if bankruptcy is right for you.

Learning More About Types of Bankruptcy in Arizona

Generally speaking, consumers will file one of two different types of bankruptcy: Chapter 7 or Chapter 13 bankruptcy, according to an FAQ sheet from the United States Bankruptcy Court for the District of Arizona. If you are thinking about filing for bankruptcy as a small business, you likely will need to learn more about either Chapter 7 or Chapter 11 bankruptcy and how these types of bankruptcy can help you.

What is the difference between Chapter 7 and Chapter 13 bankruptcy? In brief, Chapter 7 bankruptcy is what is known as a “no-asset bankruptcy.” If you have any non-exempt assets, they can be sold by the bankruptcy trustee. Most debtors have few or no assets that are not exempt from the process. You can read more about exemptions here. After discharge, the debtor will get a fresh start and will, in effect, get to start over financially without owing creditors. While it can be difficult to obtain credit in the period immediately following Chapter 7 bankruptcy, a debtor who files can immediately begin rebuilding his or her credit once the bankruptcy discharge has gone through.

Chapter 13 bankruptcy is different from Chapter 7 in that it allows a debtor to repay any past due payments on a home or a car. The debtor will develop a repayment plan. This plan will clarify how much each creditor will be repaid and over what amount of time. The repayment plan will have to be approved by the bankruptcy court. Once the debtor has satisfied the terms of the repayment plan, the rest of the dischargeable debt will be discharged and he or she will have a fresh start.

How Long Will Bankruptcy Stay on My Credit Report?

Many Arizona residents want to know how long a personal bankruptcy filing will remain on their credit reports. As a fact sheet from MyFico.com clarifies, the amount of time a bankruptcy filing stays on your credit report depends on the type of bankruptcy protection you have sought:

Chapter 7 bankruptcy: Once completed (once the discharge occurs), the bankruptcy will stay on your credit report for 10 years.

Chapter 13 bankruptcy: Once the bankruptcy is completed, it will remain on your credit report for seven years.

The fact that you have a bankruptcy filing on your credit report does not mean you will be ineligible for credit. To be sure, many debtors who file for bankruptcy begin rebuilding their financial profiles shortly after a bankruptcy discharge.

Contact an Arizona Bankruptcy Attorney

Do you have questions about filing for bankruptcy? You should discuss your case with an experienced bankruptcy attorney in Arizona as soon as possible.