What Property Can I Keep in an Arizona Bankruptcy?
The concept of filing for bankruptcy can feel overwhelming without having a bankruptcy lawyer Phoenix, AZ depends on by your side. Filing for bankruptcy and getting a fresh start does not always mean that you have to turn all your property over to the court to be distributed among your creditors. That’s because in Arizona, much like other states, certain property may be exempt when you file for bankruptcy. It pays to be knowledgeable about this property in advance so that you can separate what you’ll be able to keep. Talking to an experienced bankruptcy lawyer Phoenix, AZ deserves from Kamper Estrada, LLP may also be beneficial if you would like more specific information as it pertains to your situation.
If you choose to file for Chapter 7 bankruptcy in Arizona, it is strongly recommended that you retain the services of an experienced bankruptcy lawyer Phoenix, AZ residents turn to during their time of need. It can be an overwhelming process to think about filing for bankruptcy but the right bankruptcy lawyer in Phoenix, AZ may help you navigate this complex process and understand your rights and responsibilities as you move forward.
All property in a Chapter 7 bankruptcy case that is classified as exempt under the law means that you can keep it. There are several things you need to keep in mind in determining whether or not certain property is exempt. First of all, the value of the property is what the property is worth currently, not what you paid for it. You also need to consider your equity directly in any property. In a Chapter 13 case, you may be eligible to keep all of your property so long as your plan meets the requirements of bankruptcy law.
Arizona exemptions include a homestead exemption of a mobile home, apartment, or real estate property that you intend to occupy worth up to $150,000. Your personal property includes items such as a living room chair, two beds, one dresser, bedding for each bed, a couch, three lamps, four chairs, family portraits, radios, stereos, alarm clocks, and other items up to $4000 total. The homestead declaration must be recorded prior to the attempted sale of home if you intend to make use of this.
You are also eligible to keep fuel and food up to six months, books up to $250, bank deposits up to $150 in one account, group life insurance proceeds or policies, disability, health and accident benefits, and life insurance cash value of up to $1000 per dependent.
What are the benefits of filing for bankruptcy?
While bankruptcy can affect your finances for a while, it still has its upsides. If you file for bankruptcy with the help of a bankruptcy lawyer Phoenix, AZ respects, you may experience the following benefits:
- Financial fresh start: Bankruptcy allows you to discharge most of your unsecured debts, so you can start over financially. You will not have to stay awake at night anymore worrying about how much money you owe. With all the stress off your back, you can concentrate on putting more savings away and improving your credit.
- No more calls from creditors: Perhaps one of the most stressful parts of being in debt is receiving constant calls from creditors. Some of these creditors may even harass you and threaten to come after your assets if you don’t pay up. If you file for bankruptcy, creditors won’t be allowed to contact you anymore. If they do still try to call you, let your bankruptcy lawyer in Phoenix, AZ know right away.
- No one has to know: Many people shy away from bankruptcy because they’re embarrassed that somebody might found out. However, you can keep this information private, as a bankruptcy lawyer Phoenix, AZ trusts can attest. Your family and friends do not have to know that you filed for bankruptcy if you don’t want them to.
- It may improve your credit: It is true that bankruptcy can lower your credit score for a while, but you can actually improve your credit rating over time. You can start applying for new credit cards and loans and get your credit rating back up.
How long does bankruptcy take?
If you are thinking about filing for bankruptcy, you are probably wondering how long the process will take. If you are filing for Chapter 7, your case can typically be resolved in three to six months, as a bankruptcy lawyer Phoenix, AZ relies on may explain. On the other hand, if you file for Chapter 13, the process will take three to five years.
What should I expect during an initial consultation with a bankruptcy lawyer?
During your first meeting with a Phoenix bankruptcy lawyer, your lawyer may ask to discuss your assets, debts, and income in detail. They may also want to see pay stubs, copies of bills, tax returns, and other financial documents. All of this may help your lawyer determine if bankruptcy is the right solution for you. If it’s not the right choice for you, your lawyer may review your other options with you.
When a bankruptcy lawyer Phoenix, AZ offers asks you these questions, make sure to be as detailed as possible in your answers. You should not feel embarrassed to tell a bankruptcy lawyer Phoenix, AZ counts on about your financial situation. Even though bankruptcy may be a sensitive topic, your lawyer is not there to judge you.
Contact Kamper Estrada, LLP Today
It is important to retain a bankruptcy lawyer Phoenix, AZ community members turn to regarding bankruptcy as soon as possible if you have additional questions. Our firm offers free consultations and we’re happy to discuss your case with you in person.
The right Phoenix bankruptcy lawyer can have a significant impact on the outcome of your case. To find out more information, call our firm today at 602-730-7988. Don’t wait to schedule a consultation with a bankruptcy lawyer Phoenix, AZ trusts when you need a fresh start.