Jonathan Frutkin Bankruptcy Law Blog on Lawyers.com

Filing Bankruptcy in Phoenix Arizona

Thursday, February 4, 2010 by Jonathan Frutkin

When filing for bankruptcy in Phoenix, you will have to decide which type of bankruptcy is most appropriate based on your personal financial situation and eligibility. If you are facing an increasingly insecure financial situation exploring bankruptcy may be the best way to relieve the burden of your debt.

There are several steps that must be taken in order to file a bankruptcy in Phoenix:

Credit counseling: according to Bankruptcy Abuse Prevention and Consumer Protection Act, individuals must participate in credit counseling within 180 days prior to filing for bankruptcy. The credit counseling service must be on the U.S. Trustee Department’s list of approved providers
Filing fee: applicants must pay a filing fee. The amount for the fee varies according to the type of bankruptcy being filed. The fee for Chapter 7, for example, is $299. People who cannot afford to pay installments may request a waiver. If you are unable to pay a filing fee, contact an experienced bankruptcy lawyer in Phoenix for assistance.
Bankruptcy paperwork: filing for bankruptcy requires a lot of paperwork and forms. The forms for bankruptcy include a variety of questions addressing your financial situation:
- Your debts, assets, and number of creditors
- Your real and personal property and estimated values
- Your financial history, including income and expenses
- Your current income and means test calculation (for Chapter 7); the means test determines whether you are eligible for Chapter 7 based on your income in relation to Arizona’s median income.
- Your intentions about assets, such as whether to surrender or keep property

After your bankruptcy petition has been filed, you will be required to attend a meeting with a trustee and possibly creditors—a “341” hearing—during which you may be asked questions under oath about your debts. If the creditors choose not to challenge you within 60 days of the hearing, you debts will be discharged.

Posted at 11:09 AM

Topic: Bankruptcy