Arizona Bankruptcy Guide
On August 18, 2003, the Administrative Office of the U.S. Courts issued a press release declaring "Bankruptcy
cases continue to break federal court caseload records - total bankruptcy filings and non-business filings hit
highs." In Arizona bankruptcy proceedings, the rate of increase in individuals who file grew at a record pace -
16.1% over 2002 - which is significantly above the national average of +9.6%. Chapter 7 and Chapter 13 cases
filed by individuals accounted for 97.6% of all Arizona bankruptcy filings in 2003. The state rate for filing is
the 12th highest in the country.
Current Arizona bankruptcy laws still allow for the full & final discharge of debts in Chapter 7. Chapter 13 combines past
due amounts into one monthly payment, at reduced interest, for up to five years. Additionally, partial payments
are available which discharge remaining balances at the end of the plan term. The maximum payment in Chapter 13
is determined based on net income after paying living expenses. In ether chapter, all Arizona bankruptcy cases are subject to court review.
Also be aware that Arizona bankruptcy courts may set a hearing if an objection
is filed by a trustee, creditor, party in interest, or upon their motion. After all objections are resolved to
the satisfaction of the court, discharge of debts or confirmation of the plan is mandatory. Conversely, if objections are not
resolved, cases are usually dismissed. Most often, the success of each case is determined by careful planning
before selecting chapter, options and filing date.
Arizona Bankruptcy Questions
New bankruptcy laws are expected to limit the value of the homestead exemptions. Also, new
Ch. 7 restrictions will prevent anyone earning over the state median income from filing, Ch. 13 payments
will be increased, and judges will lose judicial discretion imposing mandatory sanctions upon debtors in many new
circumstances. These new laws narrowly missed passage each year since 2001, and may become effective at any
time. Now, more than ever, timing and planning are critical.
Most Arizona bankruptcy attorneys who special in consumer/debtor cases offer free initial consultations.
Virtually all private attorneys welcome opportunities to meet
qualified potential clients. After debtors become familiar with current requirements,
initial consultations offer an excellent opportunity to explore options and receive free legal advice, before deciding upon
any course of action. If you have considered filing, make a detailed list of questions. Meet with several lawyers. By comparing costs, benefits
and options without obligation, your most profitable path will become clear.
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