What Can You Include in Bankruptcy in Arizona?

what can you include in bankruptcyWhen filing for bankruptcy in the state of Arizona, it is important to understand what debts can and cannot be considered in proceedings. When filing a Chapter 7 bankruptcy, you would still be required to pay after other debts are discharged. In Chapter 13, the debts can be included in the payment plan, but the full payments must be made. Secured debts will also have to be paid if planning to keep the properties that are secured by the debt. Examples include houses and cars.

Debts that Cannot Be Discharged

The United States and Arizona bankruptcy courts do not allow for certain debts to be included in a bankruptcy. While proceedings are ongoing, the debtor will get a reprieve from the debt until the bankruptcy is over. When it is over, the debtor must begin paying the creditor as per the original terms of responsibility.

  • Family Obligations
    • These include back child support, alimony, or any other court-appointed obligations
  • Debts incurred for personal injury or death caused by driving under the influence
  • Student loans
    • These could still be discharged if it is proven that it would cause undue hardship to repay
  • Fines or penalties for breaking the law
    • The debts that fall into this category include traffic tickets and criminal restitutions
  • Income tax debts
    • This includes recent tax debts within the last three years and all other tax debts the debtor may have incurred
  • Debts that were forgotten on the bankruptcy paperwork. This is unless the creditor learns of the bankruptcy case.

Click here for an article on what bankruptcy can and cannot do.

Debts that Could be Declared Non-Dischargeable

If the creditor, trustee, or judge challenges a debt that you try to claim for discharge on a Chapter 7 bankruptcy, they may fall under these categories:

  • Debts that were incurred due to fraudulent acts
  • Purchases on credit cards in excess of $1,150 or more for items to be considered for luxury purposes made within 60 days of filing the bankruptcy
  • Any loans or cash advances of $1,150 or more within 60 days of filing the bankruptcy
  • Any debts incurred through embezzlement, breach of trust, or larceny
  • Debts that were incurred from willingly or maliciously injuring another person’s or property
  • Debts covered by a divorce decree or settlement
    • Unless after the bankruptcy, you would still be unable to pay the obligation or the benefit of discharging it outweighs any detriment to your ex-spouse who would be required to pay them with your discharge.

Arizona Bankruptcy Lawyers

When working with an Arizona bankruptcy lawyer, they will be able to advise you which debts you can list on your bankruptcy. It can increase the time it takes to file if you are listing things that are not allowed to be discharged. Let an experienced Arizona bankruptcy lawyer assist you in your bankruptcy filing procedures.

Bankruptcy can be a very complicated process, and no one should be doing it on their own. Bankruptcy lawyers know what it takes to get your bankruptcy completed as quickly as possible and correctly. Allow them to help you navigate the bankruptcy court system. Call an Arizona bankruptcy lawyer for help today.

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