Know How The Filing For Chapter 7 Bankruptcy Process Works
When you do not have the means to repay your debts anymore
, the only option left is to file for bankruptcy. The simplest form is under Chapter 7 bankruptcy. You are sure to come across differing opinions about this process. It is essential to discuss the details with a bankruptcy attorney for handling the case.
Apart from the federal directives, Arizona has certain rules and regulations pertaining to this legal process, also called "liquidation". Here is a brief overview.
Eligibility Chapter 7 bankruptcy filing is acceptable from individuals, spouses, partnerships, and corporations. However, as per the federal laws, you need to go through a means test that helps determine whether your income is lower than the median income of the state.
The Arizona family median income was $51,009 in 2008 (as per Bureau of Labor Statistics). You become eligible for filing bankruptcy if your income is lesser than that.
Credit Counseling There are a number of certified credit counseling organizations located in Arizona. All you need to do is find one that has certification to provide pre-bankruptcy credit counseling in Flagstaff.
The issues for discussion must center on your financial situation, a budget and if possible, planning for alternatives to bankruptcy. You can go though this session in person, over the telephone or via online. Your bankruptcy attorney can arrange for a fee waiver if you do not have the capability to pay for it.
Filing The actual filing involves submission of the official petition, a statement of financial affairs and schedules at the bankruptcy court. Certain details are necessary in the bankruptcy forms. These are as follows:
List of creditors (along with type of claim and claim amount)
The details of your income and expenses
List of your properties
The fees for filing case filing fee $299, $15 trustee surcharge and $39 administrative fee (miscellaneous).
"341" Meeting This is the first meeting between the court-appointed trustee and the creditors. Your presence is also necessary. This takes place between 20-40 days of filing. If the creditors feel that you are filing for bankruptcy to avoid repayment, they have 60 days to convince the court about this after this meeting.
Exemptions Like all US States, Arizona has exemptions in place regarding what the trustee may or may not sell off to recover debts. Your
Flagstaff bankruptcy attorney can help you understand what you can keep even after filing for Chapter 7 bankruptcy. Some of these are personal items (of specific value), retirement funds, books and documents (up to $250), engagement/wedding rings (up to $1,000), and so on.
There are very few online lawyer resources that can provide genuine information on Allentown based lawyers or law firms. 800 Allentown
Lawyer directory is one among those resources having the details of all the reputed lawyers based in Allentown.
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