Jeffrey Paul Judge Bankruptcy Law Blog on Lawyers.com

Is it harder to file for bankruptcy in Tucson, AZ?

Wednesday, October 14, 2009 by Jeffrey Paul Judge

Yes, in 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted, which made filing bankruptcy a more rigorous process. The biggest change for most people is the time and cost it takes to prepare the petition and to reaffirm their car loans.  Going into more detail, the process and law of filing bankruptcy in Tucson changed in the following ways:

  •  A new “Means Test” determines whether a debtor is eligible for Chapter 7 (fresh start) or must file under Chapter 13 (wage-earner repayment plan).

  • Requiring a Credit Counseling Class before filing for Bankruptcy.  This Class must be completed by a company certified by the U.S. Trustee’s office. 

  • Requiring a Financial Management Class after filing Bankruptcy.  This class must also be completed by a company certified by the U.S. Trustees Office.

  • Requiring a more difficult reaffirmation process in order to keep a vehicle with a secured loan.

  • Random audits and targeted audits determine whether a Chapter 7 debtor’s bankruptcy documents are accurate.

These audits mean that a person can be accused of filing bankruptcy in bad faith, i.e., by not telling the whole story or not fulfilling a duty they know they have under a bankruptcy ruling. Because of this risk, knowledgeable bankruptcy attorneys will guide their clients in providing the full disclosure as required. 

For debt solution assistance contact the Tucson bankruptcy attorneys at The Judge Law Firm, 1647 N. Alvernon Way, Suite 1 Tucson, AZ, 85712-3361

Posted at 15:36 PM
Topic: Bankruptcy
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