Arizona Bankruptcy Myths and Facts
If you are considering filing for bankruptcy in Arizona, you will need the help of our competent, qualified bankruptcy lawyers. We are here 24 hours a day, seven days a week to answer your questions and to assist you with your bankruptcy matter. Here, we will discuss some truths and lies that have proliferated regarding filing bankruptcy in Arizona.
Filing Bankruptcy is Easy in Arizona
This is a false assumption. Filing bankruptcy is never easy, regardless of the state in which you file. Our legal system is a complex labyrinth of rules, regulations and laws that can be confusing and difficult for laypersons to understand. Creditors have already hired their own aggressive attorneys to represent their interests. Who do you have working on your side?
In order to be successful in your bankruptcy filing, you should have the best Arizona bankruptcy lawyers working for you to help to guide you through the intricate legal system. Most clients who try to represent themselves when filing bankruptcy in Arizona do not successfully make it through the process. Contact our bankruptcy attorneys today to see how we can help you.
After I File Bankruptcy in Arizona, a Court Representative Will Be Sent to My Home
This is also a false statement. No one from the court will usually be appointed to come to your house and go through your possessions when you file bankruptcy in Arizona. You must simply list your possessions and their value on your bankruptcy schedules. This must be done honestly, as you are under oath when doing so.
I Will Lose My House and My Car After Filing Bankruptcy in Arizona
Most people who file bankruptcy in Arizona do not lose their house or their car. (This might change after January 1, 2022, when HB2617 goes into effect and the homestead exemption changes). As of 2021, you are allowed an exemption of up to $150,000 of equity in your house and up to $5000 of equity in one car or $10,000 for two cars (in the case of a married couple filing bankruptcy). (After January 1, 2022, the exemption increases to $250,000, but creditors can place a lien on your homestead as well as on any equity you obtain through refinancing your mortgage).
Generally, if you keep current on monthly payments, you can keep your assets of house and car if you file Chapter 7 bankruptcy in Arizona. If you file Chapter 13 bankruptcy in Arizona, your auto loan is usually paid through the plan, as are mortgage arrearages.
I Can Never Finance a Car Again or Get Credit Cards if I File Bankruptcy in Arizona
These statements are not true. Many who file bankruptcy in Arizona find it easier to be approved for financing a car after their bankruptcy has been discharged. Their debt-to-income ratio has improved, and the lender is secure in knowing that you cannot file bankruptcy again in Arizona for at least six years.
Likewise, after a discharge of bankruptcy in Arizona has occurred, you may receive many new credit card offers by mail. You can often obtain a secured credit card, too, to help you to rebuild your credit.
All of My Debts Will Be Erased When I File Bankruptcy in Arizona
This statement is not true. You must keep paying on secured debt for things that you want to keep, like your car or house. Also, student loans, criminal or civil penalties you may be paying, and child support obligations must also be paid. Some types of taxes also remain to be paid by you after filing bankruptcy in Arizona.
As you can see, filing bankruptcy in Arizona is not as easy as you might think. You need bankruptcy lawyers on your side to help you through the process and make sure that your interests are protected. Contact our bankruptcy attorneys in Arizona today to know more about Arizona Bankruptcy Myths and Facts.