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Tucson Bankruptcy Lawyer

Bankruptcy is a legal procedure that provides relief and protection to individuals and businesses struggling with debt. There are several chapters of bankruptcy available based on who is filing, their income, debts, and more. It’s vital that your petition is filed under the correct chapter so that you can fully enjoy the benefits of bankruptcy.

Once your petition is filed, you will be protected by what is known as the “Automatic Stay.” This stops your creditors from garnishing your wages, repossessing your vehicle, and foreclosing your home. However, your creditor mailing matrix must be completed fully and correctly so creditors are aware of the Automatic Stay.

What our Tucson Bankruptcy Law Firm can do for you when declaring BK in Tucson.

It’s important that when your bankruptcy petition is filed, it’s filed correctly. Otherwise, your case could be dismissed, ending the protections of the Automatic Stay. You could also have assets seized, or be required to remit extra payments to your trustee. Our attorneys will guide you through the bankruptcy process, helping you avoid these types of obstacles. To learn more about the benefits of filing bankruptcy with an attorney, call today to schedule your free initial case evaluation.

Types of Bankruptcy in Tucson, Arizona

Most consumer bankruptcies are filed under two chapters: Chapter 7 and Chapter 13. You may qualify for just one, or you may qualify for both and choose the chapter that works better for your situation.

Chapter 7 provides debt relief to qualified individuals in only 4-6 months. Because debts are discharged without repayment by the debtor, that debtor must meet strict income limits. To qualify for Chapter 7, you must either make less than your state’s median income based on your family size, or pass the Means Test. Your assets must also be protected by applicable bankruptcy exemptions, or else the trustee may sell them to pay your creditors.

COMMON QUESTIONS ABOUT BANKRUPTCY 

Frequently Asked Questions Answered by Our TUCSON Bankruptcy Lawyers

What is Chapter 7 Bankruptcy in Tucson?

Chapter 7 bankruptcy discharges almost all unsecured debts. The process is fairly short- typically between 4 and 6 months. It is only available to those under certain income limits. A trustee is assigned to the case, and the debtor is protected from creditors by the Automatic Stay while the bankruptcy is active. The debtor must complete credit counseling courses and attend a 341 Meeting of Creditors before becoming eligible for discharge.

What is Chapter 13 Bankruptcy in Tucson, AZ?

Chapter 13 bankruptcy reorganizes your debts into a payment plan that lasts either 3 or 5 years. Your payments will be based on your total debts, as well as your disposable monthly income. Like Chapter 7, you will need to attend a 341 Meeting of Creditors and complete credit counseling, and you will be protected from creditors throughout your bankruptcy by the Automatic Stay. You will also need to attend a plan confirmation with your attorney and trustee.

Who will know if I filed bankruptcy?

Bankruptcy filings are a matter of public record, but only a few people will be notified when your petition is filed. Any creditor listed on your creditor mailing matrix will receive notification of your bankruptcy. Cosigners will also be notified, as your bankruptcy filing affects them. Your employer will need to learn of your bankruptcy filing if your wages are being garnished.

Can I get rid of Medical Debt if I declare bankruptcy in Arizona?

Medical debts are unsecured debts, so they can be discharged in both Chapter 7 and Chapter 13 bankruptcy in Arizona. In Chapter 7, medical debts are discharged without any repayment by the debtor. However, your doctor may decline to continue treating you if you discharge their bills in bankruptcy. In Chapter 13, your medical bills will be included in your payment plan. They will be paid along with other unsecured debts, so they may be discharged at the end of your payment plan despite not being paid in full.

Are Student Loans able to be wiped out through Filing Bankruptcy?

It is rare and difficult to discharge student loans in bankruptcy. However, if you pass the Brunner Test, you may be able to discharge your student loans. To pass the Brunner Test, you must prove that: (1) you can’t maintain a minimal standard of living if you are required to repay the loan; (2) your current financial situation is unlikely to change; and (3) you made good faith efforts to repay the loan.

Can I keep my home and my car if I file bankruptcy?

This depends on the Chapter you file, and the value of your assets. In Chapter 13, the full balance of any secured assets besides your home must be paid off in your plan. You must remain current on a mortgage, if applicable, and pay any arrearages balance in full in your payment plan. In Chapter 7, you can only keep assets that are protected by bankruptcy exemptions. For example, the homestead exemption in Tucson is $150,000, meaning you can have that much equity in your home if you file Chapter 7.

Do I need a Tucson Bankruptcy Attorney to file bankruptcy in Pima County?

There is no statutory requirement for you to file bankruptcy with an attorney. However, those who file bankruptcy with an attorney see a much higher success rate than pro se, or unrepresented, filers. About ⅓ of pro se Chapter 7 cases are dismissed, and about 99% of pro se Chapter 13 cases are dismissed.

How will filing bankruptcy affect my credit?

Bankruptcy may cause a sharp reduction in your credit score, or it may have a miniscule effect, if any. This usually depends on your score before filing, but Chapter 13 usually has a less pronounced effect than Chapter 7. Your credit may even slightly improve after filing if you previously had a low score. Most of our clients who take proper steps to improve their credit see a considerable increase in their score in the year after bankruptcy discharge.

What are the benefits of an “Emergency Bankruptcy?”

Emergency bankruptcy, also known as a skeleton filing, allows you to file a “bare bones” petition to activate the protections of the Automatic Stay while you prepare the rest of your petition. You will only need to provide basic identification and income information to prepare a skeleton petition. This method is often used when the debtor is facing an imminent wage garnishment, foreclosure, or repossession.

How will hiring our Tucson Bankruptcy Office help you with your BK filing?

Our Tucson Bankruptcy office will help you with every step of the filing process, from consultation to advice after discharge. We will ensure your petition and creditor mailing matrix are completed correctly, as well as the rest of your case filings. We will attend your 341 Meeting of Creditors, and field all of your creditor calls from the moment you retain. To learn more about the benefits of declaring bankruptcy with our firm, call (520) 231-2822.

Reasons Why People File Bankruptcy in Tucson

Every case is unique, and most people file bankruptcy due to a variety of factors. One of the top causes of bankruptcy is medical bills. Even with health insurance coverage, out of pocket costs and time away from work can cause debts to skyrocket.

One debt that is commonly incurred during periods of injury, unemployment, etc., is credit card debt. Credit card companies charge predatory interest rates so a small debt can quickly become an impossible situation to escape. Bankruptcy provides relief from credit card debt, whether you file Chapter 7 or Chapter 13.

After a foreclosure or repossession, your property is auctioned off to pay the balance of your loan. Often, the amount the property sells for isn’t sufficient to pay the balance, as well as any legal and interest fees. The amount left over after a foreclosure or repossession sale is known as a deficiency balance. Your lender will continue to pursue you for a deficiency balance until you pay it in full or file bankruptcy.

You don’t need to wait until after a foreclosure or repossession to file bankruptcy. Filing before the collection occurs will enact the Automatic Stay, and prevent your lenders from repossessing your assets. It will also stop wage garnishments and bank levies.

Causes of Bankruptcy in Tucson

Several life events can cause someone to fall into debt and eventually file bankruptcy. Divorce means spending thousands on legal and attorney’s fees, adjusting to a new lifestyle, and possibly making support payments. Our clients often come to us for bankruptcy after a divorce, and have an easier time qualifying for Chapter 7 now that they’re single.

Some emergencies are more unexpected. Natural disasters and similar emergencies can cost you thousands, and your insurance provider may avoid paying out due to an “act of God.” These types of circumstances, which are generally out of people’s control, can eventually lead to bankruptcy.

Zero Down Bankruptcy in Tucson, AZ  (File with no $$ Down)

One issue many people considering bankruptcy face is the cost of filing. The filing fee for a Chapter 7 bankruptcy is $338, and for a Chapter 13 is $313. These are only your court costs, and don’t include your attorney’s fees or credit counseling course fees. Paying all of these up front, especially if there is a wage garnishment, can be infeasible for those struggling with debt.

Many attorneys advertise their payment plans, only to disclose during the consultation that they merely accept installment payments, and still require payment in full before filing. Our attorneys understand just how hard it can be to save up the funds for bankruptcy before enjoying the benefits of filing, and therefore offer a Zero Down payment plan for eligible clients in Tucson.

When you file Zero Down bankruptcy with our Tucson bankruptcy lawyers, you pay no money down for your case to be filed. Your balance will be paid in affordable payments up to 12 months after your bankruptcy. You can choose the date payments are run, and their frequency. Your payments include 0% interest, and are credit reported to help improve your credit score after discharge. To learn more, schedule your free consultation today.

When you need quality legal representation with payment options that fit your budget, our Tucson Bankruptcy lawyers are the choice for you. Our dedicated staff and attorneys have years of experience filing bankruptcies for clients just like you. We also offer free consultations so that you can be confident that we are the firm for you. To get started with your free consultation, call (520) 231-2822.

Tucson bankruptcy attorneys | Helping clients in Pima County Eliminate Debt Through Bankruptcy.

Our Tucson Bankruptcy Lawyers in Arizona help clients in Pima County get control of their debt and attain financial freedom.  Also, our firm offers affordable legal help for Arizona.  Tucson Bankruptcy Attorneys provide free consultations for persons in Tucson, Arizona.  By all means, call to schedule an appointment to speak with an experienced Arizona Bankruptcy attorney today.

Additionally, our staff and bankruptcy lawyers dedicate themselves to working through the tough financial issues that you may be facing.  In fact, many of our clients face repossessions, wage garnishments, and foreclosure.  With our first-class legal representation, we successfully navigate our clients through the entire bankruptcy process.

Tucson, Arizona residents file for both Chapter 7 and Chapter 13 bankruptcy protection.  In any case, an attorney can help you to decide which one is right for you.  If you struggle to keep up with debts and spend your life worrying about money, seek the assistance of a Tucson debt relief expert.

Getting help with your unmanageable debts is less stressful if you know the facts and have information.  An experienced and knowledgable bankruptcy lawyer can help you to make significant decisions about your finances that will affect your future.  You deserve a fresh start  — a clean slate.  Contact our Tucson Bankruptcy Lawyers and find out how to start the process.

FREE CONSULTS as soon as TODAY – Schedule an appointment with an experienced Arizona bankruptcy law attorney

Either in Office or by Phone –  CALL (520) 307-0020