Although there is a lot of stigma surrounding bankruptcy, it’s not always as scary as people think. Bankruptcy, according to the U.S. Government, exists to help individuals who cannot pay their debts. Bankruptcy allows the individual to either liquidate all their assets and use that money to pay off their debts at a reduced rate or to create a repayment plan that functions over three to five years which enables the individual filing for bankruptcy to regain their financial footing without losing their assets and livelihood.
There are six different ways to file bankruptcy in the U.S. and three of those methods are applicable to an individual seeking to file. Chapter 7, Chapter 13, and Chapter 11 Bankruptcy can be solutions for those who can’t repay their debt.
Once bankruptcy has been filed, an immediate and automatic stay is put into effect, protecting the individual filing from debt-collectors, foreclosure, and other harassments by their creditors. The court assumes legal control of the individual’s debts and their non-exempt property. Then a trustee is appointed to the case by the court, in order to ensure that the creditors are paid as much as possible. This trustee is responsible to review paperwork, any assets in the filer’s possession, and the exemptions they wish to claim.
What Does it Cost to File Bankruptcy?
Filing for bankruptcy incurs a fee of about $300. In addition to that, the cost of an attorney can range anywhere from $500 to $3500, based on the quality of the attorney and their levels of success and experience.
Although it may seem intimidating to face legal fees on top of dealing with other financial difficulties, filing for bankruptcy without the assistance of an attorney or other legal counsel can mean that you don’t receive the full assistance available to you from a bankruptcy ruling. Not only can an attorney fill out and check over all of your paperwork, but they will also advise you about which Chapter to file and how to gather the specific information needed to successfully plead your case, and then they will represent you before the court.
What are the Requirements to File Bankruptcy?
Before filing, individual debtors are required to participate in credit counseling within six months of filing and then they are required to undergo a financial management course after filing. In Arizona, each individual seeking to file bankruptcy will be evaluated based on the Arizona Bankruptcy Means Test. This calculates if the individual qualifies to file Chapter 7 or if they must file under a different Chapter.
If an individual desires to file Chapter 13 bankruptcy, they must submit a proposed repayment plan along with their filing. This means that once monthly living expenses have been calculated, the extra money, which is labeled disposable income, will be paid into the plan for at least three and up to five years to reduce their debt.
How To File For Bankruptcy?
If you are trying to find a bankruptcy attorney or struggling to form a financial plan to resolve your debts, we are here to help you. Our services include:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Chapter 11 Bankruptcy
- Asset Protection
- Debt Relief
- Medical Bankruptcy
- And more…
We specialize in providing our clients with the best plan for their financial security, including counsel about whether or not filing bankruptcy is the best route for your situation. And we don’t limit ourselves to whatever is the simplest or the least amount of work for us, we advise and assist with the plan that will most benefit you.
Barski Law is based in Maricopa County, Arizona, with our main office in Scottsdale. We remain one of Arizona’s top bankruptcy attorneys because, at Barski Law, our clients are important to us. We’re here to help you find the best solution for your debt reduction, whether it is working to maximize your exemptions, out-of-court debt negotiation, or advising you on how best to file bankruptcy, we are experienced in helping our clients to straighten out their finances and reclaim their quality of life.
If you live in Tempe, AZ and are in need a bankruptcy attorney or financial counseling, reach out to us at Barski Law. You can find us online at www.barskilaw.com, or give us a call at (602) 441-4700.
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