Filing for personal bankruptcy is a slightly different experience from state to state. While there are federal standards for bankruptcy cases in place, each state has its own specific rules and procedures for debtors seeking to clear their financial obligations. If you know someone who filed for bankruptcy in a different state, you may want to take their bankruptcy advice with caution, as it might not apply in the state of Arizona. The same can be said for someone who filed in Arizona, but several years prior, as bankruptcy laws change over the years as well. If you have preconceived notions about bankruptcy, there may be a few details in Arizona’s laws that surprise you. Read on to learn more about the intricacies in Arizona bankruptcy law that can make it more complicated to discharge your debts in this state. To schedule your free case evaluation with a member of our Arizona bankruptcy team, call 602-649-4949.
Arizona’s Bankruptcy Exemptions
A state having its own bankruptcy exemptions isn’t unique, but there are a few factors about bankruptcy exemptions that can present obstacles to bankruptcy debtors in our state. One of these is that Arizona does not provide a wildcard exemption. A wildcard exemption is an exemption that can be used to protect any singular asset of the bankruptcy debtor’s choosing. Many states offer a wildcard exemption so that debtors can protect a reasonable amount of equity in an asset not specifically described by their state’s bankruptcy exemptions. The federal bankruptcy exemptions also offer a modest wildcard exemption. However, this does debtors in Arizona no good, as another unique facet of Arizona’s bankruptcy procedures is that debtors can’t opt in for the federal exemptions. Some states give debtors the flexibility of the choice between state and federal exemptions, but Arizona is not one of them.
Every jurisdiction has its own residency requirements for individuals seeking to engage in any type of legal matter in a state. A residency requirement is how long the individual must live in the state to qualify. Arizona doesn’t just have a residency requirement to qualify for filing bankruptcy, but for using state bankruptcy exemptions as well. The residency requirement to file for bankruptcy in Arizona is 180 days, or 6 months. However, the residency requirement to protect assets in bankruptcy with Arizona exemptions is 730 days, or 2 years. This makes it almost impossible for a debtor to file for bankruptcy and protect assets if they are a relatively new resident. Want to confirm that you meet the residency requirements to file for bankruptcy and use exemptions to protect your assets in Arizona? Schedule your free consultation by phone today at 602-649-4949.
The Means Test
The Means Test plays a vital role in bankruptcy, no matter in which state the case was filed. But a family with the exact same income could have different Means Test results from state to state. These test results can be used to show income eligibility for chapter 7 bankruptcy, or determine how much monthly payments should be in chapter 13 bankruptcy. A chapter 7 bankruptcy debtor only needs to take it in the first place if their household income exceeds Arizona’s median income for their household size. If not, the debtor can calculate their average household income over the past 6 months and deduct their monthly bills and expenses from that number. What are considered reasonable expenses vary from state to state. Some people move to Arizona, at least in part to enjoy a lower cost of living, but our living expenses are still higher than many other states.
Passing the means test can be a crucial part of an individual’s bankruptcy journey. A skilled attorney will know which aspects are most flexible to help you qualify for the bankruptcy chapter that will best serve your needs. Your attorney can also help guide you through any other issues that may arise throughout your bankruptcy case. If you’re seeking reputable bankruptcy representation in Phoenix or Tucson with flexible payment plan options, schedule your free consultation with Atlas Bankruptcy Lawyers today- call 602-649-4949 to get started.
Paying To File An Arizona Bankruptcy Case
Paying for bankruptcy becomes a dilemma for many debtors. It takes significant cash to pay for a bankruptcy up-front, and many debtors might not be filing if they had those funds available in the first place. The filing fee for a chapter 7 bankruptcy in Arizona is $338. For a chapter 13 bankruptcy, the filing fee in Arizona is $313. There are additional filing fees that could apply in your case, such as if you need to convert a chapter 13 bankruptcy filing to a chapter 7 filing, or if your case is dismissed and you have to re-file. These fees help the state run the bankruptcy courts and handle administrative tasks related to your and other bankruptcy cases. If you are unable to pay these filing fees, you can request a fee waiver using this form.
Attorney’s fees are separate from the filing fees associated with declaring bankruptcy. Attorney’s fees are typically higher than the court filing fees for bankruptcy cases, with chapter 13 cases generally being more expensive than chapter 7 cases. How attorney’s fees are paid depends on the chapter of bankruptcy filed. In chapter 13 bankruptcy, the attorney doesn’t necessarily have to take all of their payment up front. Because debts are being paid off in a chapter 13 plan, attorney’s fees can be worked into the plan, with most chapter 13 attorneys requiring some form of a deposit to file the case. But because debts are cleared across the board when a debtor files for chapter 7 bankruptcy, it makes post-filing payment plans more complicated. Our firm offers bifurcated payment plan options that allow you to pay for chapter 7 after your case has been filed. Eligible clients can pay for their bankruptcy in affordable installments with a 0% interest rate. Learn more with your free consultation today at 602-649-4949.
Want To Review Arizona’s Bankruptcy Laws As They Apply To Your Situation With An Experienced Professional? Contact Our Firm Today.
Bankruptcy offers massive benefits to individuals seeking to clear their debts, but it also delivers drawbacks if the case isn’t filed correctly and strategically. Navigating these issues is different from state to state, and Arizona has its own rules that make a filing here unique from elsewhere in the country. Someone seeking to file their own bankruptcy shouldn’t ever gain that experience, as debts can only be cleared through bankruptcy every several years. Our dedicated staff and attorneys make a profession out of staying on top of Arizona’s bankruptcy laws to deliver our clients the best results possible. Whether you need to file for chapter 7 or chapter 13, our team has the experience to meet your debt relief needs. We offer flexible payment options to fit your budget, including Zero Down post-filing payment plan options for eligible clients. Curious about what you have to gain by filing for bankruptcy with an experienced and reputable Arizona bankruptcy firm? Schedule your free phone consultation today at 602-649-4949.
