My office has provided bankruptcy clients with competent, compassionate representation since 1994, and we pride ourselves in providing unsurpassed quality and individual attention to every client. Each and every case and client is important.  

PRELIMINARY CONSIDERATIONS:

1. Chapter 7 is designed for individual debtors in financial difficulty who do not have the ability to repay their existing debt. Debtors whose debt is primarily consumer debt are subject to a complicated means test designed to determine whether the case should be permitted to proceed under Chapter 7 or another chapter of the Bankruptcy Code, e.g. Chapter 13. For example, if your income is greater than the median income for your state of residence and family size, creditors may have the right to file a motion requesting that your case be dismissed as an abuse of Chapter 7.

2. Under chapter 7, you may claim certain of your property as exempt under Arizona law. A trustee may have the right to take possession of and sell any property that is not exempt, and use the sale proceeds to pay your creditors. As part of your petition to be filed with the court, we will file Schedule C which lists property you are eligible to claim exempt from seizure by the bankruptcy trustee in accordance with applicable law. In the prebankruptcy planning phase, we advise and assist our clients in protecting their assets and claiming the maximum allowable exemptions.

3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. However, not all prepetition debts are eligible for discharge under chapter 7. For example, you may remain liable for certain tax debt, student loan obligations, and other debts and liabilities. Prior to filing your petition, we will have thoroughly reviewed all of your debts in light of the various dischargeability limitations under the Bankruptcy Code. It is imperative that before filing bankruptcy, you consult with a competent and experienced bankruptcy attorney to discuss the discharge requirements and limitations for each of your debts.

4. In addition, every debtor is required to attend a hearing pursuant to 11 USC § 341(a) typically called a Meeting of Creditors. Our office provides our clients with representation at this hearing, and further, provides full assistance to clients in preparing for their attendance.

5. Furthermore, all debtors must complete a postpetition instructional course on personal financial management in order to receive a discharge. Once completed, the debtor is required to file a certificate of completion with the court within a specified time period. Our office provides assistance to our clients in complying with all the requirements for successfully obtaining a discharge.

Chapter 13: Repayment of Debt for Individuals with Regular Income

1. Chapter 13 is designed for individuals with regular income who are able to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. There are also other eligibility requirements for filing chapter 13 that you should thoroughly consider and discuss with a competent bankruptcy attorney prior to filing.

2. Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect. Our office will draft an appropriate and feasible plan that takes into consideration your particular situation, especially regarding the amount and type of debt you have.

3. After completing the payments under your plan, you will be eligible to receive a discharge. However, some debts may survive the full duration of your bankruptcy plan. For example, if you have a nondischargeable student loan or domestic support obligation which is not paid in full by the plan, the balance of that loan will be due after your bankruptcy is completed. Other debts you have may have to be paid in full by your plan in order for your plan to be approved by the court. It is imperative that before filing a chapter 13 bankruptcy and plan, that you consult with a bankruptcy attorney to discuss the confirmation requirements of a chapter 13 repayment plan.

4. In addition, similar to chapter 7, a debtor in chapter 13 must complete the prepetition credit counseling requirement, attend the mandatory Meeting of Creditors, and successfully complete a postpetition instruction course on personal financial management. We gladly provide assistance to our clients in completing all the requirements for receiving a discharge of debt.

Chapter 11: Business Reorganization or Liquidation

Although chapter 11 is really designed for the reorganization of a business, it is also also available to individual consumer debtors. However, its provisions are quite complicated and it is the most expensive proceeding. Thus, any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.

Chapter 11 is available to businesses suffering severe financial difficulty but nevertheless can remain economically viable if its debt repayment can be reduced, postponed or otherwise modified. The business can be a corporation, partnership, LLC or sole proprietorship. If reorganization is not feasible or desirable, chapter 11 can be used to provide an organized liquidation of the assets of the business and pay creditors with the proceeds. In addition to reorganization or liquidation plans, chapter 11 plans can also be drafted as "hybrid" plans, which provide a flexible and effective combination of both reorganization and liquidation.

Our practice in chapter 11 is limited to representing small business clients. A small business is one which has debt totalling less than $2M. Such businesses can elect to be treated as a "small business" under chapter 11. The case is then treated differently than a regular chapter 11 case, and can potentially be put on a faster confirmation track for the chapter 11 plan. Chapter 11 proceedings are very complex and typically require the advice and assistance of a competent bankruptcy attorney.

STOP CREDITOR HARASSMENT AND COLLECTION EFFORTS

Filing a bankruptcy petition will stop creditor harassment and collections efforts. For example, it will stop lawsuits, foreclosures, repossessions, wage garnishments and seizures and levies of assets.

The filing of a bankruptcy petition constitutes what is called an "Order for Relief." Thus, in accordance with 11 USC § 362(a), all creditors of the debtor are stayed from any act, the commencement or continuation of any act, the enforcement of any lien or judgment obtained against the debtor or the property of their estate, or any court proceeding with respect to the enforcement of a lien or judgment against the debtor or property of their estate from and after the filing date of the bankruptcy petition.

If you are faced with any harassment from creditors or their collection agents, or have been sued, are having property repossessed or foreclosed upon or your wages garnished, give us a call immediately - we can help!

We are a Debt Relief Agency, and proudly help people file for debt relief under the United States Bankruptcy Code and claim their right to a fresh financial start in life.