How Is Bankruptcy Different in Arizona?

Bankruptcy laws vary from state to state. While the bulk of bankruptcy law is based on federal statutes, known collectively as the “bankruptcy code,” each state also adds its own individual requirements and regulations. For example, states have the option of choosing the federal exemption scheme or adopting their own. Arizona is one state that has chosen to create its own exemption scheme. Exemptions and other differences make Arizona bankruptcies unique, so you should rely on an Arizona bankruptcy attorney for help when filing here. The attorneys at the Oswalt Law Group in Phoenix are ready to help you with all your Arizona bankruptcy needs.

Arizona Bankruptcy Rules

There are a number of unique rules that apply to Arizona bankruptcies, including:

• Arizona filers must participate in credit counseling. In order to qualify for Chapter 7 or Chapter 13 bankruptcy, debtors must show that they have received credit counseling from an approved agency within six months prior to filing. Debtors are also required to take a personal financial management course prior to discharge.
• Arizona exemption laws are unique. Homestead exemption, vehicle exemption and personal property exemptions are different in Arizona than elsewhere. It is important for filers to understand the bankruptcy exemption allowances and to take full advantage of them when filing a Chapter 7 or Chapter 13. A bankruptcy attorney can provide invaluable advice in this regard.
• Arizona filers must complete the means test for Chapter 7. There is a lengthy form known as the “means test” that must be completed by anyone filing for Chapter 7 bankruptcy. The purpose of this test is to determine if you have enough income to file a Chapter 13 and pay back some of your unsecured debt to your creditors. Those who do not pass the means test can still file a Chapter 13 bankruptcy.
• Arizona has only one judicial district. Because Arizona has a single judicial district, the rules are the same for filing anywhere in the state. The court has courtrooms in Phoenix, Flagstaff, Tucson, Prescott and Yuma. Offices are located in Phoenix, Yuma and Tucson.

For those who are interested in learning more about how bankruptcy may be able to help them take control of their finances, the bankruptcy attorneys at the Oswalt Law Group in Phoenix can help. Contact us today for a consultation to discuss your case and learn more about how we can assist you.