If you’ve been keeping up with the news lately, you probably don’t have the highest hopes for our country’s current economic climate. Mass layoffs have put thousands of federal employees out of work, tariffs are raising prices at home and causing boycotts of American products abroad, and eggs are still expensive. If your debt balance is creeping up and your credit score is dropping down, you might anticipate a bankruptcy filing at some point during this period of economic instability. You can start preparing for your case now so you can get the most out of everything bankruptcy has to offer. To learn more about preparing for bankruptcy in Arizona, schedule your free consultation with Atlas Bankruptcy Lawyers at 602-649-4949. 

Bankruptcy consultation with Atlas Law Arizona

Informing Creditors Of Your Bankruptcy Attorney Retainer

Many bankruptcy debtors have long stopped answering their phones to unknown numbers, aware that it is more likely to be a creditor attempting to collect a debt than someone they know whose number they forgot to save. It probably goes without saying that creditors must stop calling you about your debts once you have filed bankruptcy to discharge them. But you can enjoy peace from creditor phone calls long before your bankruptcy petition is filed in court. Your creditors are required to stop calling you to attempt to collect debts once you have informed them that you have retained a bankruptcy firm. Creditors who fail to comply with this rule can be penalized through sanctions. Stopping creditor calls while you prepare for bankruptcy can reduce your stress so you can focus on gathering documents and taking other steps to ready yourself for your filing. Keep in mind that because the retainer process is more informal than a court filing, creditors aren’t automatically notified- you must alert the creditor the next time they contact you. 

Timing Your Bankruptcy Filing Precisely

You don’t have to file your bankruptcy petition once you’ve finished creating it- you should hold on to it until the most strategic moment to file if this option is available to you. There are a few things you should have ready once you’re sure you are going to file bankruptcy, so that if you need to file for bankruptcy at the last moment, you are prepared. We recommend knowing where your forms of identification are when filing your bankruptcy petition. If the trustee requires that you verify your identification, your bankruptcy case could be delayed by your request for a new copy. 

Another task to complete while in the bankruptcy preparation phase is your first credit counseling class. Every bankruptcy debtor is required to take two of these classes. The first course completion certificate must be attached when the bankruptcy petition is filed. The second course completion certificate must be filed within 60 days of the 341 Meeting of Creditors. It takes most debtors about 1 to 2 hours to complete these courses, which can be done online. The first course certificate is valid if taken no more than 180 days before filing. So if you are simply waiting for the right moment to file for bankruptcy, you can take your first course in advance to make that day easier when the time comes. 

You may be wondering why you would hold off on filing for bankruptcy if you know that filing eventually is inevitable. There are several factors that can affect when would be best to file your bankruptcy petition, including: 

  • Whether or not you have received and spent your tax refund for the year
  • If you have previously declared bankruptcy, if you have met the applicable waiting period to file a chapter 7 or chapter 13 bankruptcy case
  • Which day you receive any checks or direct deposits that might not be protected by bankruptcy exemptions
  • If the circumstances that caused the bankruptcy are over, like divorce or a period of unemployment
  • If you made luxury purchases and cash advances on your credit cards, if you have met the minimum waiting requirements for them to be dischargeable when you file
  • If you have tax debts, whether they will switch from priority status to non-priority status in the near future

Which Bills To Keep Paying If You Know You’re Filing For Bankruptcy

If bankruptcy is no longer a matter of “if” but a matter of “when,” there are certain expenses you should prioritize in the weeks or months leading up to your filing. Unpaid medical bills should be among the lowest of your priorities. Medical creditors face much stricter rules for collection efforts than standard creditors, and there is no secured asset that can be repossessed if you stop making payments. Your credit cards are another bill that can be pushed lower on your priorities list- while they may carry a higher interest rate than other debts, that should all be cleared if you will be filing for bankruptcy soon anyway. 

You’ll want to keep up with regular expenses while preparing for your bankruptcy filing. Ignoring your housing costs during this stage is just kicking the can down the road, as your landlord can evict or your lender can foreclose after a chapter 7 case has been discharged. The automatic stay can stall a car repossession, but your auto lender can repossess after your case if you don’t stay current or modify your loan through bankruptcy. If you pay court-ordered child support, this is another expense on which you shouldn’t fall behind. 

Which bills you should prioritize while preparing from bankruptcy will vary from case to case. Our experienced Arizona bankruptcy team can help you determine what is best for your situation. Make your debt relief plan today by calling 602-649-4949. 

Affordable Payment Options For Bankruptcy Representation In Arizona

How you pay your bankruptcy attorney in Arizona will partially depend on which chapter of bankruptcy you file. When you file for chapter 13 bankruptcy, some of your legal fees can be worked into your payment plan, which begins upon filing. This option is not available for chapter 7 bankruptcy debtors. Because all debts- including attorney’s fees- are cleared when a debtor files for chapter 7 bankruptcy, most attorneys will require payment for these cases up front. Most advertised payment plans are actually just an opportunity for the debtor to pay for their bankruptcy in chunks before the case is filed. This allows the debtor to enjoy the benefits of retaining an attorney- i.e., stopping creditor harassment– but not from the benefits of filing for bankruptcy, like activating the automatic stay. If you plan on spending several months preparing for bankruptcy, making small installment payments during that time might not be a big deal. But if you need bankruptcy’s protections quickly, paying for your bankruptcy over time could bring about your filing too late. 

For chapter 7 bankruptcy debtors who can’t pay their legal fees before filing for bankruptcy, some firms have alternative options available. At My AZ Lawyers, eligible clients can utilize our Zero Down option to file for bankruptcy now and pay for it later. Your balance is payable over 12 months and comes with a 0% interest rate. Learn more with your free consultation at 602-649-4949.