There are a lot of FAQ regarding bankruptcy. Before deciding if bankruptcy is the right type of Tucson debt relief, you may have questions that you would like answered. Below are some of the most common questions and answers to those questions. If you have additional questions, do not hesitate to contact our bankruptcy lawyer in Tucson.
(FAQ) My creditors call me constantly. What should I do? Am I required to respond to their calls?
A: Filing a bankruptcy petition immediately stops all creditors from contacting you in any way regarding your debt. In fact, alll collection efforts to collect on a debt you owe must end. If you are struggling with making monthly payments and overwhelming debt, contact our experienced Tucson bankruptcy attorneys to take a look at your debt situation.
(FAQ) What is a bankruptcy discharge?
A: A debt discharge, issued by the bankruptcy court, is the debt that you are no longer obligated to repay. Some debt may not be discharged in bankruptcy. For example, child support, student loans, certain tax debt, and spousal support. Our bankruptcy team can assess your debt and devise the best plan to eliminate your debt.
(FAQ) Will bankruptcy stop my wages from being garnished?
A: Yes. Chapter 7 bankruptcy protection offers the advantage of the automatic stay. As soon as you file bankruptcy, the automatic stay stops all creditors from collecting a debt. This also includes wage garnishment.
(FAQ) What will happen if my employer finds out I file bankruptcy. Can I be fired?
A: No. You may not be fired from your job because of a bankruptcy filing. Federal laws prevent an individual from being fired due to discrimination because of filing for bankruptcy in Arizona.
Can I keep my pets if I file for bankruptcy?
A: You should be able to keep your pets, even though you are filing for bankruptcy. Also, you will most likely be able to exempt your pets from your bankruptcy petition. In any case, you should report animals of any value on your bankruptcy paperwork (pedigree dogs, cats, horses, etc…) but the truth is you are more likely to lose a pet in a custody battle or divorce than in a bankruptcy case.
Will I have to go to court?
A: Yes. The court requires you to attend a Meeting of Creditors, or a 341 hearing. No worries, our attorneys will prepare you for this hearing and accompany you to the bankruptcy court. It is a standard proceeding in which the trustee confirms information about your bankruptcy case, assets, and may ask questions about the petition. Typically, this would be the only court appearance that is required. Also, our Tucson Bankruptcy Lawyer will be with you through this step and all the way through the bankruptcy process.
Am I eligible for bankruptcy in Arizona?
A: The most typical bankruptcy cases filed in Arizona are Chapter 7 and Chapter 13. In order to determine if you qualify for Chapter 7 bankruptcy, you must take a means test. In particular, the means test takes into account income, expenses, and your ability to pay back debt. For example, to qualify for Chapter 13, you must prove a regular source of income and the ability to pay debt through a Chapter 13 repayment plan. Your qualified AZ bankruptcy lawyer will help you with a Ch 13 repayment plan that you can afford.
Specifically, our attorney will be able to assess your debt situation and determine which chapter of debt relief is best for you, and assist you in finding out for which you qualify. Other options to consider are Zero Down bankruptcy, Bankruptcy by phone, and Bankruptcy from home.
Can I keep my house in a Chapter 7 Bankruptcy filing in Tucson, Arizona?
A: Yes, if you remain current on your payments you are able to keep your home. You will only be in jeopardy of losing your home in a Chapter 7 bankruptcy if you are behind on your payments or if there is too much equity in your home. You should consult with an experienced Tucson bankruptcy attorney to determine how much equity is in your home.
What is a bankruptcy reaffirmation agreement, and am I required to sign one?
A: A reaffirmation agreement is a new agreement that you enter into with the creditor of a secured debt after the filing of your bankruptcy petition. In most cases if you are current on your payments and remain current, the lender will not require a reaffirmation agreement. However, some lenders will stop reporting your payments to the credit bureaus without one. Consult with your bankruptcy attorney to see if it is in your best interest to sign a reaffirmation agreement.
Is there a debt limit when filing for a Chapter 7 bankruptcy in Tucson?
A: No, there is not a limit to how much debt you can discharge in a Chapter 7. There is also not a minimum requirement of how much debt you must have in order to declare bankruptcy in Tucson, AZ. There are several factors to consider when deciding to file for bankruptcy. How is your debt to income ratio? How high are your interest rates? Do you have the ability to repay the debt and maintain a reasonable quality of life? Most experienced Tucson bankruptcy attorneys will offer a free consultation to determine if bankruptcy is the right choice for you.
If someone cosigned on a debt with me and I file for bankruptcy, will they still have to pay the debt?
A: If you file for Chapter 7, then yes, more than likely your cosigner will be held liable for the debt. If you file a Chapter 13 and are able to pay the debt during the length of your plan then your cosigner will not be held responsible for the balance.
What is a secured debt and are secured debts dischargeable in a Tucson bankruptcy?
A: A secured debt is a debt in which there is collateral for the debt, such as a home or car. If you decide to surrender the collateral in your bankruptcy filing then the debt becomes dis-chargeable. If you wish to keep the collateral you must continue to pay on the debt.
Will filing for bankruptcy in Tucson stop my wage garnishment?
A: Once a bankruptcy petition is filed the “Automatic Stay” goes into effect. The Automatic Stay will stop all foreclosures and wage garnishments. It is important to know that your petition must be filed prior to your payroll cut off, NOT your pay date in order to stop the garnishment from coming out of your current pay check.