Information About Filing For Bankruptcy In Mesa Arizona

The Chapters of Bankruptcy

Chapter 7 Bankruptcy

One piece of information about filing for bankruptcy in Mesa Arizona is a chapter 7 bankruptcy. Known as a liquidation proceeding, it was created to help people get out from under their debt and start fresh. If a person cannot afford to payback their debts, they could file for chapter 7 bankruptcy, for that reason. The debtor would turn over all non-exempt property to their bankruptcy trustee who then converts it into cash for distribution to the creditors. Please note that a debtor is allowed to keep certain exempt property.

Chapter 13 Bankruptcy

A chapter 13 bankruptcy is also known as a reorganization bankruptcy. A Mesa chapter 13 bankruptcy is where a debtor would pay off their debts over three to five years. This type of bankruptcy was created for individuals who want to keep their non-exempt personal property.

What can I expect during the bankruptcy process?

• You will need to meet with a bankruptcy attorney to complete a means test to make sure you qualify for bankruptcy.  Is your existing monthly income greater than the median income? If the answer is yes then you’ll need to file a chapter 13 bankruptcy. If your answer is no then you will need to file a chapter 7 bankruptcy.
• Your bankruptcy attorney in Mesa Arizona will give you a list of documents he or she will need in order to prepare your bankruptcy for filing. A few examples are:  paystubs, bank statements, credit report, tax returns, list of debts and creditors, list of personal property, list of monthly expenses etc.
• You will also need to complete a pre-filing consumer credit counseling class through a provider approved by the court. This class will need to be completed before you can file your bankruptcy.
• Once you have completed your pre-filing counseling class and your bankruptcy lawyer has reviewed all your financial documents, the lawyer can then file your bankruptcy.
• About 7-10 days after your bankruptcy has been filed, your court appointed bankruptcy trustee will send you a request for documentation. The trustee will probably ask for the same documents your attorney requested. For example, paystubs, bank statements, credit report, tax returns, list of debts and creditors, list of personal property, list of monthly expenses etc. You must provide the requested documents to the trustee by the deadline given. You can also contact your bankruptcy attorney if you need help with this step.
• Once your bankruptcy has been filed, the bankruptcy court will schedule a meeting of creditors hearing within 45-90 days. During the hearing, your court appointed bankruptcy trustee will interview you for about 10-15 minutes and ask you a few general questions. This is a mandatory hearing and you must bring current picture identification and your social security card. The meeting of creditors hearing also gives the creditors a chance to appear and ask you questions if needed. Your bankruptcy attorney should attend the meeting of creditors hearing with you.
• The next step is to complete the post-filing consumer credit counseling class. You will need to complete this class before you can get a discharge from your bankruptcy.
• The court allows the bankruptcy trustee and your creditors to file an objection within 60 days from the meeting of creditors hearing. Objections are rare but in some cases they do occur. If the trustee and/or creditors do not file an objection, the court will discharge your bankruptcy within 60-90 days of the meeting of creditors hearing.
• If you filed a chapter 13 bankruptcy, you would receive your bankruptcy discharge once you have finished repaying your debts. This process usually takes three to five years.

Additional Information About Mesa Arizona Bankruptcy

Bankruptcy court locations in Arizona:  http://www.azb.uscourts.gov/

Information about bankruptcy filing fees in Arizona:   http://www.azb.uscourts.gov/

List of credit counseling providers approved by the bankruptcy court:  http://www.justice.gov/

Please feel free to contact our Mesa Arizona bankruptcy lawyer with any additional questions or concerns you may have.