Category: Bankruptcy

Life after bankruptcy discharge arizona filers experience rarely matches the mental picture people have going in. A Chapter 7 discharge under 11 U.S.C. § 727 wipes out personal liability for most debts in the case. It doesn’t reset a credit report to zero, though, and it doesn’t erase every kind of financial history. What actually…

Subchapter v bankruptcy arizona small business owners use looks like Chapter 11. It runs by a much shorter rulebook, though. Congress created it through the Small Business Reorganization Act to give small companies a faster, cheaper path through Chapter 11. It skips the creditors’ committee and the layered procedures that make traditional Chapter 11 so…

A chapter 13 repayment plan arizona filers propose isn’t a number they pick. It’s a formula the court runs. That formula weighs income, expenses, and how your income compares to the Arizona median for a household your size. Two people with identical debt totals can end up with very different monthly payments once 11 U.S.C.…

A reaffirmation agreement chapter 7 filers sign lets them keep a financed car. In exchange, they stay personally on the hook for that loan, even after everything else in the case gets wiped out. That trade sounds simple. It isn’t. Under 11 U.S.C. § 524(c), reaffirming a debt pulls that one obligation back out of…

Bankruptcy can stop wage garnishment in Arizona the moment you file. Arizona already caps most garnishments at 10% of disposable earnings under A.R.S. § 33-1131, thanks to 2022’s Proposition 209. But 10% of every paycheck still adds up fast when money is tight, and the state cap doesn’t touch a creditor garnishing your bank account…

The bankruptcy credit counseling requirement trips up more filers than almost any other procedural step. Under 11 U.S.C. § 109(h), anyone filing bankruptcy in Arizona must complete an approved credit counseling course before filing the case, not after. Skipping it isn’t a minor paperwork gap. It can get the case dismissed outright. The bankruptcy credit…

What debt is not dischargeable in bankruptcy comes down to a specific list under 11 U.S.C. § 523. Bankruptcy wipes out most unsecured debt. But a handful of categories survive no matter which chapter someone files. Knowing what’s on that list before filing avoids a nasty surprise after the case closes. What debt is not…

Medical debt bankruptcy Arizona filers pursue makes up a large share of Chapter 7 cases statewide. Unlike a mortgage or car loan, medical debt is unsecured. Nothing backs it beyond a promise to pay. That makes it one of the most straightforward categories of debt for Chapter 7 to discharge. Why medical debt bankruptcy Arizona…

Bankruptcy can stop an Arizona foreclosure, but the timing has to work. Filing before a trustee sale happens triggers the automatic stay under 11 U.S.C. § 362, which halts the sale immediately. File after the sale has already occurred, though, and there’s usually nothing left to stop. The property has already changed hands. Can bankruptcy…

The bankruptcy automatic stay stops most collection activity the moment a case gets filed. No court order is required. Under 11 U.S.C. § 362, it takes effect automatically the instant the petition is filed. Creditors who keep collecting after that point risk violating a federal injunction, whether or not they meant to. What the bankruptcy…