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Types of Bankruptcy

Personal and Business Bankruptcy in Tucson, AZ

Bankruptcy is a court-based process designed to get your life back on a positive financial track. The United States Bankruptcy Code provides these choices and others for personal bankruptcy or business bankruptcy.


Chapter 7

If you find yourself facing personal bankruptcy in Tucson, then Chapter 7 is the part of the U.S. Bankruptcy Code that you will want to learn more about. Chapter 7 is nicknamed a “fresh start” bankruptcy. In other words, it cancels some of your debts while liquidating some of your property for the benefit of your creditors. Chapter 7 can be an effective solution for individuals with overwhelming financial troubles, but everyone isn’t eligible. Two specific hurdles can make it hard to file Chapter 7 in Tucson, AZ:


  • a previous bankruptcy discharge in the last six to eight years; and
  • income, expenses, and debt burden that raise you above the median income for a family of your size.


If the calculations put you above the median level allowed for Chapter 7, then take a look at:

Chapter 11 Bankruptcy

Chapter 11 generally provides for “reorganization” of a corporation or partnership, although individuals with businesses also may file. A debtor who is filing Chapter 11 bankruptcy usually proposes a plan of reorganization to keep its business alive and pay creditors over time. In most instances the court provides oversight and jurisdiction while the debtor remains in control of its business operations.


Chapter 13

Chapter 13, like Chapter 7, is designed for personal bankruptcy. The primary difference is the amount of money you have on hand to repay your debts according to a scheduled plan over time. Chapter 13 is also known as the “wage earner’s or “consolidation” alternative. If home foreclosure and auto repossession are on your horizon, this may be the bankruptcy choice for you, because it allows you to more easily stay in your home and keep your car while avoiding complete liquidation of your property.

Other advantages of filing Chapter 13 bankruptcy in Tucson include:


  • A rescheduling of your secured debts that extends payments over the life of the Chapter 13 period; and
  • The elimination of interaction with creditors. The law forbids creditors to begin or continue collection efforts under Chapter 13 protection.


If you have any questions or need bankruptcy help, contact a law firm in Tucson who understands business and personal bankruptcy. For an initial consultation, please call Jeffrey P. Judge at 520-745-1500 or submit our email form .