wantafreshstartyavapaicounty

Apr 10

Whether you live in Phoenix, Mesa, Glendale, Peoria, or Buckeye, your bankruptcy will be filed in the Federal Bankruptcy Court in downtown Phoenix, Arizona. If you live in another county, your bankruptcy may be filed in a different location. For example, in Prescott, your bankruptcy will still be filed in the Phoenix bankruptcy court, but your creditor’s meeting will be held in Prescott. If you live south of the Maricopa county line, in Casa Grande or anywhere in Pinal county, your creditors’ meeting will be held in Florence. If you live in Pima county, your bankruptcy petition and case will be filed in Tucson and your creditors’ meeting will also be in Tucson.

When Can I File Bankruptcy in Phoenix or Arizona? 

Do you feel like you are barely making the minimum payments on your debt? You are not alone. According to marketwatch.com, 4.4% of credit card debt became newly delinquent in the second quarter of 2017. Americans have more debt per capita than ever before in history. CNBC and the Federal Reserve estimate it at over a trillion dollars. So what is the best way to get out of debt? How much debt do I need to file bankruptcy?

Everyone who finds themselves struggling to pay bills or to pay down debt should consider bankruptcy. Even Donald Trump has declared bankruptcy, four times! Bankruptcy should not be a last resort. Bankruptcy should be a strategic decision when it makes sense with your finances.

How Much Debt Do I Need to Qualify for Phoenix Bankruptcy?

Even an average amount of debt qualifies for bankruptcy discharge in Arizona. For example, let’s say you have an average amount of credit card debt according to fool.com. If everyone in America carried balances on their cards, the average balance would be about $5500. But only 38 percent of Americans carry balances. This makes the average balance over $16,000 for people who carry credit card balances. The minimum payments on those credit card balances is astonishing. It would be $500 a month or more. 

Let’s weigh and balance the alternatives for getting out of the average amount of debt. Let’s say you pay the minimum payment of $500 per month for a year, which is a lot for the Phoenix/Mesa metro area. You have now paid $6000, and you still owe the original amount. Let’s say you find a way to pay $750 per month for a year. You have now paid $9000, and you have paid less than a sixth of the balance on the credit card. There is a lot of hard work and dedication to paying a lot of money to get nowhere. There is an easier way, and it comes from a surprising place. 

What Is Bankruptcy?

The federal government, almost from inception, has provided a way to get rid of debt without working your whole life just to pay interest to a bank. It was obvious, even to our founding fathers, that people who were disenfranchised by little hope of ever paying their debt would become desperate. Desperate people do desperate things. In an attempt to establish justice and insure domestic tranquility, a way was provided to deal with overwhelming debt. They called it bankruptcy, but that word has taken on such a negative connotation. It should be called anything else. Would it sound as negative if it was called Reasonable Debt Solution?

You Can File Bankruptcy in Phoenix/Mesa, Even If You Have Assets and Income

The only requirement for bankruptcy is that you want to make use of a federal program to help with your debt. You can have income and assets and still use the bankruptcy system in Arizona. In Phoenix, most assets are exempt from the bankruptcy process. That means that you keep the assets regardless of how much you owe creditors. The bankruptcy exemptions in Arizona will protect your home and your car, as well as most other assets. 

How Does Arizona Bankruptcy Work?

The most difficult part of bankruptcy is realizing that you need one. There is no reason to understand the thousands of pages of laws that make up the bankruptcy filing process. There are bankruptcy lawyers in Phoenix and all of Arizona who know and understand the law. Filing for bankruptcy in Phoenix/Mesa is very affordable. These experienced bankruptcy professionals will take small monthly payments. This is much easier and safer than trying to learn the entire bankruptcy law.

To file the bankruptcy petition, you will need to gather a bunch of documents. These include paystubs or proof of income for the last full six months before filing. You will need to provide copies of your Arizona car title or your real estate deed filed with the Maricopa county or other county recorder. You will want a copy of your recent tax returns and bank statements. If you have not filed taxes, you will need to file them soon after filing the bankruptcy petition. 

After your bankruptcy attorney files the petition, you will have to go to a creditors’ meeting–also called a 341 meeting–about six weeks later. If you live in Maricopa county, your meeting will be held in downtown Phoenix. Most counties have places to hold the creditors’ meeting in their county. Bankruptcy filings in Yavapai county hold their 341 meeting in Prescott. Pima county bankruptcy filings will go to creditors’ meetings in Tucson, and Pinal county bankruptcy goes to Florence. You will receive notice of the 341 meeting or meeting of creditors shortly after filing your bankruptcy petition.

After attending your creditors’ meeting, many things could go wrong. The creditors’ meeting is conducted by a trustee that is appointed by the court. If the trustee finds reason to question your bankruptcy filing, the bankruptcy trustee could schedule further inquiry. This could take many forms. The bankruptcy trustee could ask for a deposition, known as a 2004 exam. This is sworn testimony from the debtor (you) to clarify things on the bankruptcy petition. The trustee could move to dismiss the case or disallow exemptions. There are many things that can go wrong. That is why the money spent for a bankruptcy attorney in Phoenix is worth every penny. To schedule a free consultation with an experienced Phoenix bankruptcy attorney today, contact us online or call us at (602) 265-3822.

CONTACT:
Want A Fresh Start, LLC
10090 W. 26th Ave.
Lakewood, CO 80215
Ph: (303) 578-7931
Website: https://wantafreshstart.com/jefferson-county-bankruptcy-attorney/
Blog URL: https://wantafreshstart.com/file-bankruptcy-phoenix-arizona-2/

Mar 15

Exemptions are a basic part of the bankruptcy system. People in debt owe money, but the federal government and state credit laws state that individuals looking to get out from under debt cannot be unduly punished through loss of basic property and necessities. This includes essentials like transportation, housing, professional tools, or other personal belongings.

What exemptions mean for you depends on the type of bankruptcy you file. Chapter 7 bankruptcy uses exemptions to determine what you keep and what becomes part of your settlement with your creditors. Chapter 13 bankruptcy uses exemptions to determine how much you will pay for nonpriority and unsecured credit that falls under the bankruptcy agreement.

You must understand how exemptions work before determining what kind of bankruptcy to file. It’s important to know how state law affects what property can be declared as exempt

EXEMPTION SYSTEMS

Each state has different exemptions for bankruptcy. There are also federal bankruptcy exemption guidelines, with 17 states giving you a choice between state and federal guidelines. California even provides two separate state exemption guidelines. So, if you file in Denver, CO or Las Vegas, NV you have to follow Colorado or Nevada state guidelines only. But each state will have its own guidelines.

If given a choice, you must pick one guideline system and adhere to it for the duration of the bankruptcy. You can, however, also include federal nonbankruptcy exemptions where applicable. Check out the list of Federal Nonbankruptcy Exemptions here.

Follow this link and click on your state link to determine if your state follows federal exemption laws alongside the state’s laws. This will also layout how much you can exempt for specific pieces of private property.

HOW DO EXEMPTIONS WORK?

If the value of all your property in a specific category comes out to less than or equal to the exemption amount available for your state, then you are eligible to keep that property.

Example: Arizona has a vehicle exemption law of up to $6000 dollars, and you own a car worth $4000. If you file Chapter 7 bankruptcy, then you can keep the car. If your car was worth more than the $6000, then a bankruptcy trustee would sell the care to pay off creditor and/or a car loan. However, in this case you would be paid the $6000 for the car exemption, with the remainder used for creditor payments.

Exemption also considers the cost of selling the item. If your property is close to the cost of the total exemptions allowed, and the cost incurred by selling the item exceeds the remaining amount after the exemption, then a trustee will not sell your item. This is falls under Property Abandonment law (see our page on Property Abandonment).

Also, be sure to read our page on property and exemption: What Property is Exempt in Bankruptcy?

WHAT EXEMPTION RULES SHOULD I FOLLOW?

There are two approaches to deciding what state’s rules you should follow:

  1. If you have lived in your current state of residence for the past two years (and your permanent resident in listed as in this state) then you use that state’s (or applicable federal alternatives) exemption rules for your bankruptcy filing.
  2. If you have recently moved (within the past two years), then read our page on “Bankruptcy Exemptions: Which State Exemption System Can You Use?” page to figure out the details.

Homestead Exemption Rules

Homestead exemptions work slightly differently than other exemptions. If you purchased your home (or other real property) within 40 months of filing within the state where you currently live, your exemption is capped according to that state’s exemption law. For example, Nevada state guidelines cap Homestead exemptions up to $550,000. But, and this is important, this cap isn’t applicable for property purchased from the proceeds of selling another home in the same state. See Chapter 7 Homestead Exemption in Bankruptcy to learn more.

BANKRUPTCY EXEMPTIONS SPECIFIC TO YOUR FILING

No matter what happens, you need to make a detailed list to inventory your property and exemptions. If you are filing Chapter 7, this will help you get the bigger picture on what property you will be able to retain, and what property could possibly end up in the hands of your trustee for sale. Make sure that you understand the options for exemptions in your state, and that you understand the best set of regulations that allow you to keep as much property as possible. Remember that just because you are in debt, that doesn’t mean you have to give up your valuables or family possessions at the demand of a creditor. This is your opportunity to take your life back, so make sure that you do it on the best terms available.

Contact:
Want A Fresh Start, LLC
343 W Roosevelt St #100
Phoenix, AZ 85003
Phone: 602-468-3328
Web: https://wantafreshstart.com/phoenix/
Blog URL: https://wantafreshstart.com/bankruptcy-exemptions-can-keep-exemptions-determine-keep-becomes-capital-debt-payment/

Mar 15

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