How to File for Bankruptcy in Arizona
Arizona debtors must know how to file for bankruptcy in Arizona, as they have two options when it comes to filing for bankruptcy – Chapter 7 and Chapter 13 bankruptcy. The Chapter 7 procedure is a quick one that can be filed for once every seven years. Chapter 13 bankruptcy takes anywhere between three to five years. Instead of entirely giving up property, the debtor is expected to repay at least a portion of debt and maintain a strict budget for the purpose of improving their financial situation.
In order to file for either kind, a debtor will need to complete all of the required paperwork like a bankruptcy petition and other forms. These are filed with an Arizona district court.
Counseling is the First Step
Before filing for Chapter 7 or Chapter 13 bankruptcy, an Arizona resident will be required to complete a course of financial counseling. There has to be evidence of getting credit counseling from an agency that is approved by the US Trustee in Arizona.
The counseling has to be completed within six months before filing for bankruptcy. A personal financial management class is another requirement for moving forward with the procedure.
Bankruptcy Forms and Documents
Filing for bankruptcy involves the completion of a significant amount of paperwork.
For a start, you will need the state’s official bankruptcy forms that can be downloaded from the United States Bankruptcy Court District of Arizona website. If you don’t know how to navigate through all of these documents, you can benefit from the services of an experienced bankruptcy attorney. A bit of professional assistance will speed things up and reduce the risk of errors.
A median income evaluation will also be required. Individuals who have an income lower than the state’s median amount are eligible for a Chapter 7 bankruptcy. Anyone who opts for Chapter 13 bankruptcy and who has an income lower than the median will be eligible for a three-year repayment plan.
Depending on the situation and the location of the debtor, additional local forms may have to be completed. Getting in touch with the respective court’s bankruptcy filing clerk will reveal how to file for bankruptcy in Arizona and whether such additional documents will have to be submitted.
Filing with the Respective Arizona Court
Once you have completed all the calculations and you’ve filled out the required forms, you can move on to the next step.
Anyone who has lived in Arizona for at least 91 out of the past 180 days can file with the Arizona District Bankruptcy Court. Just about every interaction can be completed by mail if you can’t do the filing in person. Additional information about court addresses is available on the bankruptcy district court of Arizona website.
Keep in mind, however, that anyone filing for bankruptcy will need to meet with their bankruptcy trustee in person at least once.
How Much does it Cost?
A final question that will have to be addressed is the cost of filing for bankruptcy in Arizona.
There’s a filing fee you’ll need to take care of, as well as a couple of additional charges. The filing fee for a Chapter 7 bankruptcy is 335 dollars. Mandatory credit counseling courses are available at the lowest possible rate of 25 dollars per course.
The filing fee for a Chapter 13 bankruptcy is 310 dollars. One thing to consider when doing financial planning is that attorney fees for this type of bankruptcy tend to cost more than professional assistance for Chapter 7 bankruptcy.
Some additional charges to take in consideration include professional help for the preparation of all the required documents (anywhere between 30 and 1,800 dollars), an adversary proceeding fee of slightly over 290 dollars, a notice of appeal fee of slightly over 290 dollars, certification (11 dollars), exemplification (12 dollars) and audio recording (30 dollars). An attorney can give you the rundown on how to file for bankruptcy in Arizona, and help you prepare financially for the process.
