Chapter 7

A Chapter 7 Bankruptcy is also referred to as a liquidation bankruptcy or a fresh financial start. I will evaluate your current financial situation, including your income, debts and assets to determine if a Chapter 7 Bankruptcy is your best choice.

Before filing, you will be required to take a “credit counseling” class, by an approved credit counseling agency. The credit counseling agency has to be approved, I can email you a list, or you can obtain the list from the United States Trustee’s website.  The class can be taken online, with your spouse, and takes an hour or less to complete.  When you have finished the course, the agency will provide you with a Certificate, which must be filed with your case.

The “automatic stay” is a protection provided to you immediately upon the filing of your bankruptcy petition with the Court. This is an order from the court prohibiting any creditor from calling you, harassing you, pursing legal action against you, foreclosing on your home, repossessing your car or other secured property. This is a strong protection that will grant you the relief (and peace and quiet) you’ve been seeking.

Once your case has been filed, a trustee will be assigned who is responsible for selling any property of value to pay your creditors. Some of your property (assets) will be considered “exempt” (which means it is protected and the trustee cannot take or sell). The exemptions you are entitled to will depend on the state you lived in 730 days (2 years) prior to filing bankruptcy. Most people want to know if their house, car and household furnishings will be protected if they file for bankruptcy. Arizona has the following exemptions for those assets: $150,000 of equity in a single family home; $5,000 (per debtor) for a vehicle; $4,000 (per debtor) for household furnishings. Some common assets that are not exempt are rental property, timeshares, and land. It’s important to be honest with me, so that I can make sure we are protecting all or most of your property, and to prepare you if something isn’t protected.

Approximately five weeks after filing the bankruptcy petition a “Meeting of Creditors” (also known as the “§341 Hearing”) is held. If you are a Maricopa County resident, your hearing will be located in downtown Phoenix. Pinal County residents attend their 341 hearing in Casa Grande.

At the hearing you will be placed under oath by the trustee, and the testimony will be recorded for the record. The assigned trustee will ask you several questions to verify that the information listed in your bankruptcy petition is truthful and accurate. Creditors may also attend this hearing and ask questions about your financial status, or your petition.  I will attend this meeting with you, keep you informed of what to expect, and answer any questions you may have before and after the hearing.

After the hearing, you will be required to take a “financial management course”. Similar to the credit counseling course, this course is required before discharge of your debts. Once you have completed the course, a certificate should be sent to me so that I can file it with the court.  You will receive your discharge 90 days after your 341 Hearing.

• most taxes
• child support
• alimony
• most student loans
• court fines and criminal restitution
• personal injury caused by driving drunk or while under the influence of drugs.

The discharge only applies to debts that arose before the date you filed. Also, if the judge finds that you received money or property by fraud, that debt may not be discharged. The judge can also deny your discharge if you do something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records, or lie, or if you disobey a court order. This is why it is important to be honest and forthcoming with me.

You can only receive a chapter 7 discharge once every eight years. Other rules apply if you previously received a discharge in a chapter 13 case.

1. Call 480-917-0340 to schedule your FREE consultation.
2. Meet with me to discuss your specific situation and all of your options.
3. Fill out documents, take your credit counseling class, and review all of these items with me at your follow-up appointment.
4. I will draft your court documents.
5. We will meet again to review and sign your petition.
6. Your case is filed with the Court.
7. I will send you an email with your court date a copy of your petition via email.
8. You will receive a letter from the trustee requesting documents such as pay stubs, bank statements and taxes.  You must comply with this request fully and promptly. (I do not receive this letter).
9. Your Meeting of Creditors will be held approximately 5 weeks after filing. You must bring photo Identification and your Social Security Card.
10. Your discharge will be mailed out by the Clerk’s office approximately 90 days after the Meeting of Creditors.