Yuma Chapter 7 Bankruptcy Attorney Helps Consumers Discharge Debt
Accomplished lawyer fights to give you a clean slate
Chapter 7 is the most common form of bankruptcy filed in Arizona. It is also typically the fastest and least expensive type of bankruptcy to file. At the Law Offices of Phil Hineman, P.C., we draw on more than 25 years of experience when advising you on bankruptcy matters. We can help you determine whether you qualify for Chapter 7 debt relief and then provide the reliable legal counsel you need to successfully complete the bankruptcy process, often in six months or less.
What is Chapter 7 bankruptcy?
Chapter 7 is known as clean slate bankruptcy because it allows you to discharge certain types of debt immediately. However, it is also called liquidation bankruptcy, because you may have to sell certain assets to partially repay your creditors before the court discharges your remaining debt. Fortunately, the law contains many exemptions that allow you to keep a certain amount of property in several categories, such as:
- Homestead — You may exempt up to $150,000 in real property.
- Household furnishings — You may hold furnishings worth up to $6,000 at fair market value.
- Vehicle — You may exempt the equity in one car up to $6,000, or $12,000 if you are physically disabled.
Other exemptions are available for fuel, food, clothing, musical instruments, pets and domesticated animals, engagement and wedding rings, books, a watch, a computer, a pistol, a prosthesis, and a wheelchair.
Although Chapter 7 is the quickest way to discharge unsecured debt, such as credit card balances and medical bills, there are certain debts you cannot discharge through bankruptcy, including past due alimony and child support, student loans, and most taxes.
How do you qualify for Chapter 7 bankruptcy?
To qualify for Chapter 7 bankruptcy in Arizona, you must pass a means test by showing you earn less than the median income in the state for a household of your size. Disabled veterans may be exempt from the means test. If your income is too great to qualify for Chapter 7, you may still be able to file under Chapter 13.
Chapter 7 bankruptcy stops creditor harassment in Yuma and Payson, AZ
When you file bankruptcy, federal law prohibits creditors from contacting you immediately upon filing. This is known as the automatic stay. This stay temporarily stops creditor calls and collection efforts. Once a Chapter 7 bankruptcy is under way, it can also stop:
- Wage garnishment
- Creditor harassment
Of course, you don’t simply want to stop these actions. You want to keep your car and your house. As long as your payments are current on these, or you are able to catch up by the time of filing, you will, most likely, be able to keep those items.
Contact our Yuma law firm for a free Chapter 7 bankruptcy consultation
The Law Offices of Phil Hineman, P.C. has been assisting residents to resolve debt through bankruptcy in Yuma, Payson and the Phoenix metro area for more than 25 years. Call 928-257-1155 or contact us online to discuss your options with an experienced bankruptcy lawyer. We offer flexible appointments, even in the evening and on weekends, as well as free phone consultations for our bankruptcy clients.