How to File for Bankruptcy in Arizona
Filing for bankruptcy in Arizona works very similarly to the process of filing for bankruptcy in all other states. It is necessary to take time to learn about the federal laws and rules that must be followed. In addition, it can be very beneficial to take some time to learn about the specific requirements that apply in the state of Arizona. The decision to file for bankruptcy is a serious one that requires planning, research and preparation. It is highly recommended that anyone considering the bankruptcy option consult with a qualified bankruptcy attorney in the state of Arizona.
It is important to decide which form of bankruptcy is appropriate before taking any steps to file a formal petition with the court. Most people who file for bankruptcy around the country file for Chapter 7 bankruptcy. Chapter 7 bankruptcy is an option that allows for unpaid debts to be legally discharged through the court. People who are capable of paying back unpaid debts over time have the option to file for Chapter 13 bankruptcy. This form of bankruptcy allows for a structured payment plan to be set up through the court. There are also some other options on the table for debtors with unique circumstances. For instance, fishermen and farmers have the ability to file for Chapter 12 bankruptcy. People with high debt amounts or business-oriented debts have the option to file for Chapter 11 bankruptcy.
Important Steps in the Bankruptcy Process in Arizona
The form of bankruptcy that a person is ultimately eligible to file under is determined by something called a means test. A means test is a requirement that all debtors must complete. It will be necessary to submit detailed information regarding income, assets, liabilities and other key details when completing a means test. All of the information provided must be honest, accurate and current.
The bankruptcy process officially gets off the ground when a person submits a formal petition with the bankruptcy court in Arizona. However, one key step must be completed months before a petition can be filed. Anyone considering the option to file for bankruptcy in Arizona must complete a credit counseling course during the six months leading up to actually filing for bankruptcy. This course must be taken through a course provider that is approved in the state of Arizona. The complete list of approved providers can be accessed here. This is not the only required course that a debtor must complete. It is also necessary to complete a debtor education course during the bankruptcy process. The list of approved providers for this course can be accessed here. Another requirement during the bankruptcy process is attendance at a meeting of creditors. This meeting is something that is arranged by the court. Most debtors find that this meeting is brief and uneventful. However, the meeting does provide creditors with an opportunity to try to prove that a debtor has nonexempt assets that can be forfeited. Creditors will also have the option to contest the details of a payment plan in the case of a Chapter 13 filing.
A Closer Look at Arizona's Bankruptcy Process
The United States Bankruptcy Court for the District of Arizona has locations in Phoenix, Tucson, Yuma, Flagstaff and Bullhead City. The filing fee when filing for Chapter 7 bankruptcy in Arizona is $335. The filing fee when filing for Chapter 13 bankruptcy in Arizona is $310. A complete list of fees that can be anticipated when filing for bankruptcy of any form in the state of Arizona can be viewed here. A full roster of the forms that may be needed when filing for bankruptcy in Arizona can be accessed here.