Category: Bankruptcy

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…

The Arizona homestead exemption bankruptcy filers rely on protects a large slice of home equity from creditors. It’s one of the biggest reasons most Chapter 7 filers in the state keep their house. Under A.R.S. § 33-1101, the exemption starts at $400,000 in equity and adjusts upward each year for inflation. What the Arizona homestead…

The Arizona bankruptcy means test decides who qualifies for Chapter 7 and who gets routed toward Chapter 13 instead. Under 11 U.S.C. § 707(b), the test compares a filer’s income against the state’s median for a household of the same size. Passing it isn’t automatic. But for most Arizona filers, it’s more straightforward than the…

Chapter 7 vs Chapter 13 bankruptcy in Arizona comes down to one core question. Does the filer need to sell nonexempt assets to wipe out debt? Or can they keep those assets and repay creditors over time instead? Both chapters live under Title 11 of the U.S. Code, and both can eliminate debt. However, they…