If you’re considering filing bankruptcy in Gilbert, AZ, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Gilbert, Arizona, like in the rest of the United States, involves meeting certain eligibility criteria and navigating specific legal processes. Bankruptcy is a legal option designed to provide financial relief to individuals and businesses overwhelmed by debt. In Gilbert, just as in the rest of Arizona, the primary types of bankruptcy available to individuals are Chapter 7 and Chapter 13. Each chapter has its own set of eligibility requirements, and the qualification process can be complex. Here, we will discuss the key factors that determine eligibility for both Chapter 7 and Chapter 13 bankruptcy in Gilbert, AZ.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed to discharge unsecured debts such as credit card debt, medical bills, and personal loans. To qualify for Chapter 7 bankruptcy in Gilbert, AZ, you must meet the following criteria:

1. Means Test: One of the primary eligibility factors for Chapter 7 bankruptcy is the means test. This test compares your income to the median income in Arizona for a household of your size. If your income is below the median, you automatically qualify for Chapter 7. However, if your income exceeds the median, you may still be eligible based on your disposable income and expenses.
2. No Recent Chapter 7 Discharge: If you’ve received a Chapter 7 discharge within the past eight years, you are generally ineligible to file for Chapter 7 bankruptcy again.
3. Not Filed for Chapter 7 in the Past 180 Days: You cannot file for Chapter 7 if you have already initiated the process and had your case dismissed within the past 180 days.
4. Pass a Credit Counseling Course: Before filing for Chapter 7, you must complete a credit counseling course from an approved agency.
5. No Fraudulent Activities: If you’ve engaged in fraudulent financial activities, such as hiding assets or providing false information on your bankruptcy paperwork, you may be disqualified.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy is often referred to as “reorganization bankruptcy” because it involves creating a repayment plan to pay off some or all of your debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Gilbert, AZ, you must meet the following criteria:

1. Steady Income: Unlike Chapter 7, Chapter 13 requires a regular source of income to create a repayment plan. This plan should show that you can meet your essential living expenses while making payments towards your debts.
2. Debt Limits: There are debt limits for Chapter 13 bankruptcy. These limits may change over time, so it’s essential to consult with a bankruptcy attorney for the most up-to-date information.
3. Completing a Credit Counseling Course: Similar to Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
4. Not Disqualified by Prior Bankruptcy: If you’ve previously filed for Chapter 13 bankruptcy and your case was dismissed within the past 180 days, you may face restrictions on re-filing.
5. Good Faith Effort: You must file your Chapter 13 bankruptcy petition in good faith, meaning you are genuinely attempting to repay your debts through the proposed repayment plan.

It’s important to note that bankruptcy laws can change, and eligibility criteria may vary. Consulting with an experienced bankruptcy attorney in Gilbert, AZ, is crucial to determine your eligibility accurately and navigate the bankruptcy process successfully. An attorney can also help you understand the most recent income thresholds and legal requirements.

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Do You Need a Lawyer to File For Bankruptcy in Gilbert, AZ?

While it is not legally required to hire a lawyer to file for bankruptcy in Gilbert, Arizona, it is highly advisable to do so. Bankruptcy is a complex legal process with potential long-term financial and legal consequences, and having an experienced bankruptcy attorney can significantly improve your chances of a successful outcome.

Here are some reasons why you should consider hiring a lawyer when filing for bankruptcy in Gilbert:

1. Navigating Complex Laws: Bankruptcy laws are intricate and subject to change. An attorney who specializes in bankruptcy law is well-versed in the intricacies of the legal system and can ensure that you understand your rights and responsibilities throughout the process.
2. Determining the Right Chapter: There are different chapters of bankruptcy, such as Chapter 7 and Chapter 13, each with its own eligibility requirements and benefits. A lawyer can assess your financial situation and help you determine which chapter is most appropriate for your specific circumstances.
3. Maximizing Exemptions: Bankruptcy law provides exemptions that allow you to protect certain assets from liquidation. An attorney can help you identify and utilize these exemptions to retain as many of your assets as possible.
4. Avoiding Costly Mistakes: Filing for bankruptcy involves extensive paperwork and strict deadlines. A small mistake or omission can lead to delays, dismissal of your case, or even allegations of fraud. An attorney can ensure that all paperwork is accurate and submitted on time.
5. Protection from Creditors: Once you file for bankruptcy, an automatic stay goes into effect, preventing creditors from pursuing collection efforts. If creditors violate this stay, an attorney can take legal action on your behalf to hold them accountable.
6. Creating a Feasible Repayment Plan: In Chapter 13 bankruptcy, you’ll need to create a repayment plan that outlines how you’ll pay off your debts over several years. An attorney can help you develop a plan that is reasonable and acceptable to the bankruptcy court.
7. Dealing with Complex Cases: If your bankruptcy case involves complications like high-income levels, business ownership, or disputes with creditors, an attorney can provide the expertise needed to handle these complexities effectively.
8. Legal Advocacy: If disputes or challenges arise during the bankruptcy process, an attorney can advocate for your interests and defend your rights in court.
9. Peace of Mind: Bankruptcy can be emotionally taxing, and the guidance of a knowledgeable attorney can provide you with peace of mind, knowing that your case is in capable hands.
10. Long-term Financial Planning: A bankruptcy attorney can also help you with long-term financial planning after your bankruptcy is complete, including rebuilding your credit and managing your finances more responsibly.

While hiring an attorney involves legal fees, these costs are often outweighed by the potential benefits and savings. Attempting to file for bankruptcy without legal representation can be risky, as you may miss opportunities to protect your assets, make mistakes that jeopardize your case, or fail to fully understand the implications of your decisions.

In some cases, individuals may qualify for pro bono or low-cost legal assistance through legal aid organizations, depending on their financial situation. It’s advisable to explore such options if you are concerned about the cost of hiring an attorney.

Cost to File Chapter 7 Bankruptcy in Gilbert, AZ

The cost to file Chapter 7 bankruptcy in Gilbert, Arizona, involves several fees and expenses, including court filing fees, credit counseling fees, and attorney fees if you choose to hire an attorney. It’s essential to understand these costs before initiating the bankruptcy process.

Here’s a breakdown of the typical expenses associated with filing Chapter 7 bankruptcy in Gilbert:

1. Court Filing Fee: The filing fee for Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Arizona is $380. This fee may be subject to change, so it’s crucial to check the most up-to-date fee schedule on the court’s website or by contacting the court directly.
2. Credit Counseling and Debtor Education Fees: Before filing for Chapter 7 bankruptcy, you are required to complete two mandatory credit counseling courses. These courses typically cost around $58 to $120 each, depending on the service provider you choose. Some credit counseling agencies offer fee waivers or reduced fees based on your income.
3. Attorney Fees: While you can file for Chapter 7 bankruptcy pro se (without an attorney), it is highly recommended to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees can vary widely, depending on the complexity of your case and your location. In Gilbert, AZ, Chapter 7 bankruptcy attorney fees should be discussed with potential attorneys during initial consultations and inquire about payment plans if necessary.
4. Mandatory Financial Management Course: After filing for Chapter 7 bankruptcy, you must complete a mandatory financial management course. The cost of this course can vary, but it’s typically in the range of $60 to $115.
5. Other Possible Costs: Depending on your specific circumstances, there may be additional costs associated with your bankruptcy case. For example, if you need to obtain credit reports, request copies of financial documents, or address special circumstances in your case, there could be extra expenses.

Filing for Chapter 7 bankruptcy in Gilbert, AZ, involves various costs, including court filing fees, credit counseling fees, attorney fees (if applicable), and mandatory financial management course fees. It’s essential to budget for these expenses and explore your options for fee waivers or payment plans if needed to ensure a smooth bankruptcy process. Consulting with a bankruptcy attorney can also help you understand the full scope of costs associated with your case.

Cost to File Chapter 11 Bankruptcy in Gilbert, AZ

The cost to file Chapter 11 bankruptcy in Gilbert, Arizona, can be significantly higher compared to other bankruptcy chapters due to the complexity and nature of Chapter 11 cases. Chapter 11 is typically utilized by businesses, including corporations, partnerships, and individuals with substantial debts, who are looking to reorganize their finances and continue their operations. Here’s a breakdown of the main expenses associated with filing for Chapter 11 bankruptcy:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Arizona is substantial. Please note that bankruptcy fees can change over time, so it’s essential to check the most current fee schedule on the court’s website or by contacting the court directly.
2. Attorney Fees: Chapter 11 cases are highly complex and require the expertise of experienced bankruptcy attorneys. Attorney fees for Chapter 11 bankruptcy can vary significantly based on the complexity of the case, the size of the business or individual estate, and the level of legal work required. Chapter 11 attorney fees can range from tens of thousands of dollars to hundreds of thousands of dollars or more. These fees often include legal consultations, document preparation, negotiations with creditors, and representation in court.
3. Creditors’ Committee Fees: In Chapter 11 cases, a creditors’ committee may be formed to represent the interests of unsecured creditors. The costs associated with the operation of this committee, including professional fees, are typically paid by the debtor’s estate.
4. U.S. Trustee Fees: The U.S. Trustee oversees Chapter 11 cases and may charge quarterly fees based on the debtor’s disbursements. These fees can vary depending on the size of the debtor’s disbursements and the specific circumstances of the case.
5. Other Professional Fees: Chapter 11 cases often involve the hiring of various professionals, such as accountants, appraisers, and financial advisors, to assist with the reorganization process. These professionals charge fees for their services, and these costs are typically borne by the debtor’s estate.
6. Operational Costs: During the Chapter 11 process, the debtor continues its business operations, which may incur ongoing expenses such as rent, utilities, and employee salaries. These operational costs are part of the overall financial restructuring plan.

It’s important to emphasize that Chapter 11 bankruptcy is a highly customized process, and the costs can vary widely depending on the specific circumstances of the case. The complexity of Chapter 11 cases, along with the need for professional expertise, makes it imperative for businesses and individuals considering Chapter 11 to consult with experienced bankruptcy attorneys to assess their situation and develop a realistic budget for the bankruptcy process.

Cost to File Chapter 13 Bankruptcy in Gilbert, AZ

The cost to file Chapter 13 bankruptcy in Gilbert, Arizona, includes several fees and expenses that individuals must consider when seeking debt relief through this specific bankruptcy chapter. Chapter 13 bankruptcy is often referred to as “reorganization bankruptcy” because it involves creating a structured repayment plan to pay off some or all of your debts over a period of three to five years. Here is a breakdown of the main costs associated with filing for Chapter 13 bankruptcy:

1. Court Filing Fee: The filing fee for a Chapter 13 bankruptcy case in the United States Bankruptcy Court for the District of Arizona is $365. This fee is subject to change, so it’s essential to verify the most current fee schedule on the court’s website or by contacting the court directly.
2. Attorney Fees: While individuals can file for Chapter 13 bankruptcy without an attorney (pro se), it is highly recommended to hire an experienced bankruptcy attorney. Attorney fees for Chapter 13 cases can vary depending on the complexity of your financial situation, the jurisdiction, and the attorney’s rates. On average, attorney fees for a Chapter 13 case typically range from $2,890 to $4,700, although they can be higher or lower depending on your specific circumstances.
3. Credit Counseling and Debtor Education Fees: Before filing for Chapter 13 bankruptcy, you are required to complete two mandatory credit counseling courses. These courses generally cost between $57 and $118 each, but some agencies may offer reduced fees based on your income.
4. Mandatory Financial Management Course: After filing for Chapter 13 bankruptcy, you must complete a mandatory financial management course. This course typically costs between $67 and $120.
5. Chapter 13 Trustee Fees: In a Chapter 13 case, you make payments to a Chapter 13 trustee, who then distributes these payments to your creditors according to your approved repayment plan. The trustee typically charges a percentage fee for administering your case, which is included in your monthly payment. The trustee’s fee is typically around 10% of your monthly plan payment.
6. Plan Payments: As part of your Chapter 13 bankruptcy, you will be required to make monthly plan payments to the Chapter 13 trustee. These payments go toward paying off your debts according to the terms of your court-approved repayment plan.
7. Other Possible Costs: Depending on your specific circumstances, there may be additional expenses related to your Chapter 13 case. These could include costs associated with obtaining credit reports, copies of financial documents, or addressing any special circumstances.

It’s essential to budget for these expenses when considering Chapter 13 bankruptcy, and consulting with a bankruptcy attorney is highly recommended. An attorney can help you navigate the process, create a feasible repayment plan, and ensure that you meet all legal requirements. Additionally, if you are unable to afford the court filing fee, you may be eligible for a fee waiver or installment plan, which can be discussed with the court.

Reliable Bankruptcy Attorneys in Gilbert, AZ

Below is a list of reputable bankruptcy attorneys in Gilbert, AZ. They can help you with both personal and business bankruptcy information.

Meyer Law, P.C.
1425 W Elliot Rd # 105, Gilbert, AZ 85233, United States

Teague Law Firm
1245 E Warner Rd Ste. 203, Gilbert, AZ 85296, United States

Andrew S. Mathers, P.C. Attorney at Law
1166 E Warner Rd #216a, Gilbert, AZ 85296, United States

Wilson-Goodman Law Group, PLLC
1760 E Pecos Rd #315, Gilbert, AZ 85295, United States

The Law Offices of Brandon White, P.L.L.C.
225 E Germann Rd Suite 101, Gilbert, AZ 85297, United States

Gilbert, AZ Zip Codes We Proudly Serve:

85142, 85204, 85206, 85209, 85212, 85225, 85233, 85234, 85249, 85286, 85295, 85296, 85297, 85298

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