Arizona Bankruptcy Law: Facts You Need to Know


Arizona bankruptcy law is quite complex and there are a lot of facts you need to know before you file for bankruptcy. For example, do you know How often can you file bankruptcy chapter 7 or what is the difference between bankruptcy chapter 7 and chapter 11? This article has the answers to these questions and other questions you may have. If you don’t find the answers to your questions here, please review our many other articles on bankruptcy here: Bankruptcy Articles



You are not alone


More than 1.4 million people filed for bankruptcy in 2009. Over a million of those cases were filed under Chapter 7. Most bankruptcies are triggered by major changes to a person’s income or expenses, such as loss of employment or a medical event not covered by insurance.



Arizona bankruptcy law gives you a legal right to file for bankruptcy


If you owe more than you can reasonably pay within your income, allowing for standard living expenses, you have a legal right to file for bankruptcy and be free of burdensome debt.



How often can you file bankruptcy chapter 7?


You must wait 8 years from the date of a previous Chapter 7 filing before filing for Chapter 7 again. You must wait only six years after a Chapter 13 bankruptcy before filing for bankruptcy under Chapter 7.



What is the difference between bankruptcy chapter 7 and chapter 11?


Chapter 7 is liquidation bankruptcy; in Arizona bankruptcy law, Chapter 7 filers will have all assets sold and the proceeds will be dispersed to your creditors. Any remaining unsecured debts will be discharged. Chapter 7 is most commonly used by individuals. By contrast, Chapter 13 is most often used by businesses who want to maintain control of the business (as opposed to having it sold off) while reorganizing and finding a way to pay the debts.



Most likely you will NOT go before a judge


Unless someone raises an objection, it is unlikely that you will have to appear before a bankruptcy judge if you file under Chapter 7. If you file under Chapter 13 you will probably only appear before a judge during the plan confirmation meeting.



Not all debts are discharged by filing Chapter 7 bankruptcy


Only unsecured debts are discharged in a Chapter 7 bankruptcy. You can only discharge secured debts, such as a mortgage or car loan, if you are willing to return the property. Under Arizona bankruptcy law, if your secured debts are not paid in full or past payments made up by the close of your case, your creditors may proceed with foreclosure or repossession procedures.



You may only include exemptions allow by Arizona bankruptcy law


In Arizona, when calculating income and expenses to determine your eligibility for filing bankruptcy, you may only use the exemptions specifically allowed by Arizona bankruptcy law. You may not opt to use federal exemptions as allowed in some other states.



More Questions?


If you’ve not found the answer to your question here, these articles may be of help to you:
Do I Qualify for Chapter 7 bankruptcy in Arizona
Which is better Chapter 7 or chapter 13
How to file for Chapter 7 bankruptcy
How to file for chapter 13 bankruptcy
How to file bankruptcy in Arizona
Bankruptcy Chapter 7 Exemptions in Arizona
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Chapter 11 Bankruptcy


Additional articles can be found here:
Free articles on Arizona bankruptcy law

Ready to talk to someone about filing for bankruptcy? Contact us today and get a Free Consultation with attorney Jeffrey P. Judge or call us at 1-520-745-1500.