THE BANKRUPTCY PROCESS IN ARIZONA

The First Step – Sitting Down With Us. The bankruptcy process begins at your initial consultation with one of our experienced attorneys.

After discussing and evaluating your specific situation, we will make a recommendation concerning which type of bankruptcy will be the best for you. Our recommendation will not only be based on the bankruptcy laws, but also on your goals. Rest assured we will not file a bankruptcy for someone unless it will make their life better! Once you have hired us, we will begin working for you immediately. We will stop the harassing telephone calls and begin gathering the information necessary to file your bankruptcy.

The Second Step – Credit Counseling. One of the requirements necessary to file a Chapter 7 or Chapter 13 bankruptcy is that you must take a credit counseling class prior to filing your case. There are several United State Trustee approved credit counseling agencies. Many of these agencies offer classes on-line to accommodate busy people. This class must be taken within 180 days prior to the filing of your bankruptcy. Once completed, you will receive a certificate of course completion. That certificate will be filed with your bankruptcy case. We are happy to assist our clients in finding an approved agency to take this class.

Filing Your Bankruptcy – The Hard Part Is Over

After you have completed your credit counseling class, we will have you come in to our office to review and sign your bankruptcy papers with one of our attorneys. We will then file your case with the Bankruptcy Court. Once your bankruptcy is filed, the Automatic Stay is imposed. The Automatic Stay stops anyone from continuing or starting any collection efforts against you without the Bankruptcy Court’s permission, including law suits, repossessions, garnishments, and foreclosures.

When your bankruptcy is filed, a Trustee is appointed. In a Chapter 7 Bankruptcy, the Trustee’s main job is to review your Bankruptcy Petition and to sell any non-exempt property you have. Don’t worry! Most people don’t lose anything. We will let you know before your bankruptcy is filed if you are in danger of losing any property.

In a Chapter 13 Bankruptcy the Trustee’s job is different. The Chapter 13 Trustee reviews your Bankruptcy Petition and Chapter 13 Plan to make sure your plan to re-pay your bills will work. The Chapter 13 Trustee also collects payments from you each month. The money collected by the Chapter 13 Trustee is then distributed to your creditors according to your Chapter 13 Plan. The amount of money you will have to pay to the Chapter 13 Trustee and the length of your plan depends on a variety of factors, such as your monthly income, expenses, and the type of bills you have. Our experienced attorneys will sit down with you and formulate a plan that suits your budget.

Your “Court” Date – The Section 341 Meeting

It’s not really court. It is a meeting with the Bankruptcy Trustee assigned to your case, otherwise known as a Section 341 Meeting of Creditors. This usually takes place approximately 30 days after your bankruptcy has been filed. We will be there with you and prepare you for the meeting beforehand. Even though it’s called a Meeting of Creditors, creditors rarely show up. The meeting typically takes only 10 minutes and is generally pretty simple. The Bankruptcy Trustee will ask you questions, under oath, based on the information contained in your Bankruptcy Petition.

One Last Class To Take

In order to receive your bankruptcy discharge (which is what you are shooting for) you are required to take a Debtor Education Course. This course is very informative and our clients have told us that it has helped them identify financial issues to work on in the future. Like the Credit Counseling Class, the Debtor Education course can be taken on-line and we can assist you in registering for this class. This course typically takes a little over an hour. Once completed, you will receive a Certificate of Completion which we will file with the bankruptcy court.

Discharge – You’re All Done!

In a Chapter 7 Bankruptcy, you will receive your discharge approximately 75 days after your Section 341 Meeting of Creditors. In a Chapter 13 bankruptcy, you will receive your discharge once you have successfully completed your Chapter 13 Plan. The Discharge is the document issued by the Bankruptcy Court which officially relieves you of your dischargeable debt. Please note that some debts cannot be discharged in a bankruptcy. Examples of non-dischargeable debts include most student loans, most taxes and other debts owed to the government, child support obligations, and debts that were not included in a Chapter 13 plan. Our experienced attorneys will advise you concerning which of your debts will be discharged and which debts will not.

To ensure that your bankruptcy process goes smoothly and that all of your eligible debt is successfully discharged, we highly recommend you contact our office to have a qualified Chicago bankruptcy lawyer handle your bankruptcy for you.

CONTACT US today for a Free Consultation!