Checklist for Filing Chapter 7 Bankruptcy in Arizona
As we’ve mentioned in previous blog entries, there are two types of individual bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is relatively quick and involves liquidating assets to pay off the debt – all the while keeping creditors at bay. Chapter 13 bankruptcy involves restructuring your debt so that you can pay it off in monthly installments. In this article, we’ll talk about how to prepare for filing for Chapter 7 bankruptcy in Arizona.
Before You File for Chapter 7
The first step you should take before actually filing for Chapter 7 bankruptcy is to get a bird’s eye view of your situation. Ask yourself – or a financial adviser – if filing is indeed your best course of action for eliminating your debt. You also need to determine what assets or possessions you’re willing to part with or keep and what lifestyle changes you can make to improve your situation. It’s also recommended that you attempt to negotiate with your creditors for a new repayment plan, lower interest rate or lower minimum payment.
Complete Mandated Credit Counseling
In order to qualify for Chapter 7 bankruptcy, you must complete credit counseling from an approved agency within six (6) months before you actually file. A personal financial management class will also be included. A list of approved credit counseling agencies in Arizona can be found here.
There are a few forms that must be completed to file for bankruptcy in Arizona – including a bankruptcy petition and detailed information about your finances. One of the things that you will have to do is a means test – a comparison of your income to the median income for a household your size in the Grand Canyon State. If your income is less than the median, you’re eligible for Chapter 7.
Let The Oswalt Law Group Help in Your Bankruptcy Decision
We know that facing the possibility of bankruptcy is a daunting task. But it’s important to make sure that you are doing things properly so that you can make the decision and get on with your life. Since no two situations are alike, we urge you to take advantage of our expertise in bankruptcy procedure and law by calling us at the Oswalt Law Group at 602) 225-2222 for a free consultation.