A Chapter 7 Bankruptcy is a liquidation bankruptcy in which the individual debtor seeks to discharge as much of their debt as possible and obtain a fresh start. McDonald Law Offices has helped thousands on people get their fresh start. Call Today to get your fresh start.
If the income for your household does not exceed the state median income for a household of your size, it will not be presumed an abuse for you to file Chapter 7. For qualification purposes, your income is determined by using your average monthly gross income over the 6 month period leading up to when you file your case. Learn who is eligible to file for Chapter 7 Bankruptcy ->
In Chapter 7 you can discharge most debts, including credit card debt, payday loan debt, medical debt, certain tax debt, and judgments resulting from lawsuits and deficiency judgments from repossessed cars or foreclosed upon homes. Some debts will not be discharged. The filing of a chapter 7 will require that you complete certain schedules and statements that must be filed with the court. It is important that you pick the best bankruptcy attorney to properly prepare these documents for you. The Glendale bankruptcy attorney at McDonald Law Offices has been successfully preparing and filing these documents for over 25 years. Certain information must be provided in every case that is filed and the Glendale bankruptcy lawyer will review the requirements with you.
If you have a secured debt such as a mortgage, you have the option of surrendering the house and discharging the debt through the Chapter 7, or if you are current on the payments and the house is exempt, you can keep the house as long as you continue to make the payments. The mortgage will not be reaffirmed in the bankruptcy. Instead, you will simply continue to make the payments directly to the lender. Any of our attorneys including our Peoria bankruptcy attorney can explain how this works.
If you have other secured debt such as a vehicle loan or an appliance or electronics purchase, you have the option of surrendering the vehicle or other collateral, and having the debt discharged through the Chapter 7, or if you would like to retain the collateral you can reaffirm the debt or enter into a redemption agreement. A reaffirmation agreement is an agreement with a creditor that is entered after the filing of the Chapter 7 Bankruptcy. If you intend to retain the property that is collateral for a debt (other that a debt secured by real property), you MUST either enter into the Reaffirmation Agreement within 45 days after the date of the Meeting of Creditors or redeem such property (pay the agreed upon value of the collateral in full). Failure to timely enter into the Reaffirmation Agreement or redeem the debt will result in the bankruptcy stay being lifted and will give the creditor the right to repossess the collateral. If you enter into a Reaffirmation Agreement, you will have waived your right to have the debt discharged in the Chapter 7 Bankruptcy. This means that the debt will survive the discharge. In the event that you default on the loan in the future, the creditor can repossess the collateral, and collect any deficiency following the sale of the collateral from you. If you have any questions regarding the reaffirmation or redemption process give us a call and either our Mesa bankruptcy attorney or one of our other attorneys will answer all of your questions.
Prior to the filing of the bankruptcy you will be required to go through a very simple credit counseling briefing. This is a mandatory requirement to file bankruptcy. We have a list of providers and most of the providers allow you to go through the process online or over the telephone. Upon completion of the briefing you will be provided with a Certificate of Counseling that you will need to provide to your attorney for filing with the court. Learn more about the Pre-Bankruptcy Credit Counseling ->
The court will appoint a chapter 7 Trustee to take possession of, and sell, non-exempt assets. The court appointed trustee will attempt to get as much money as possible from your non-exempt property. Since a chapter 7 is a liquidation bankruptcy it is the trustee's job to do this. The trustee gets paid a percentage of the money he is able to get for your creditors, so you can expect that the trustee will take the job seriously.
Whether the trustee will take property from you to sell it is governed by the trustee's judgment as to whether sufficient money will be realized from the property to cover his expenses and pay for his time. We have found in our cases that sometimes the trustees do not take any property unless they can expect to realize around $1,000 or more from all of the property taken from a single estate. Learn more about what property is Exempt ->
You will be required to attend a Meeting of Creditors approximately thirty to forty five days after your case is filed. The location of the meeting will be based on the county that you live in. Pursuant to federal law, you will need to bring both a Photo ID such as a driver's license, state issued photo ID, a passport or legal alien card, and your social security card (The actual card, and not a copy). Learn more about the Meeting of Creditors ->
Within forty five days after the date of the meeting of creditors you will be required to complete an instructional course on financial management. This is a course that takes two hours and can be done online or on the telephone. During this course, the approved credit counseling agency will review household budget with you. Upon completion of the counseling, you will be provided with a Certificate of Debtor Education that you will need to provide to your attorney for filing with the court. Learn more about the Post-Bankruptcy Certificate ->
At the end of the Chapter 7 proceeding, the court enters a discharge which cancels most debts.
More Information About Filing Chapter 7 Bankruptcy Chapter 7 Bankruptcy Overview
Chapter 7 Videos
Who is Eligible
Do's and Dont's
Meeting of Creditors
Pre-Bankruptcy Credit Counseling
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Please call McDonald Law Offices to schedule a time to talk to one of our experienced Arizona bankruptcy attorneys. If you call during our business hours it is likely that one of our bankruptcy lawyers will be available to talk to you when you call.
The attorney will be able to go over how you can stop foreclosure, stop garnishment, and eliminate other debts through the filing of bankruptcy. During the call our lawyers will be able to determine if you qualify, how much it will cost to declare bankruptcy, what debts your bankruptcy will cover, and how long it takes to file.
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