The Arizona Chapter 7 Bankruptcy Process

If you think it may be in your best interests for file for Chapter 7 bankruptcy, you are probably curious about the process you will need to undergo. The truth is that this process is relatively simple for most filers; it is likely that you will never even need to appear in court. However, to minimize the chance of complications, you need to be familiar with your rights and obligations at each step.

This article will only review the basic steps of Chapter 7 bankruptcy. For a more complete understanding of what to expect, you will need to discuss the details of your case with an experienced Arizona Chapter 7 bankruptcy attorney. To learn more, call the Harmon Law Office, LLC at 480-829-0494.

The Steps of Chapter 7 Bankruptcy

Before you can repay your debts under Chapter 7, you will need to complete the following steps:

• Take the means test. If your average monthly income is above a certain level (based on the median income in your area), you may not be eligible.
• File the petition. This will require a number of forms describing your income, assets, debts, and recent financial activity. Once you have filed them, the automatic stay will go into effect.
• Meet your trustee. The court will appoint him or her to take over your case. He or she will review your documents to make sure they are correct and to determine which of your assets may be sold. Whatever funds are raised this way will be used to repay your secured debts.
• Meet with your creditors. The meeting will be overseen by the trustee, who will question you about your income and debts. This is your creditors’ chance to protest any debt discharges or other issues they may disagree with. It may sound intimidating, but you can bring your Arizona Chapter 7 bankruptcy lawyer to help.
• Help your trustee repay your debts. If you have any non-exempt assets (i.e., property that can be sold) of value, your trustee will sell them to raise the money. Alternately, you may choose to sell them yourself and give him or her the money. At this point, you will likely not need to contact your creditors again; your trustee will run the process of repaying them.

By following these steps, you may be able to end creditors’ calls and begin to restore your credit.

Contact Us

At the Harmon Law Office, LLC, we only hire dedicated and knowledgeable Arizona Chapter 7 bankruptcy attorneys. Contact us today at 480-829-0494 for help managing your debt and other financial issues.