If you’re considering filing bankruptcy in Glendale, 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 Glendale, Arizona, or anywhere else in the United States involves meeting specific criteria and navigating a complex legal process. Bankruptcy is designed to provide relief to individuals and businesses struggling with overwhelming debt, but not everyone is eligible to file.

Chapter 7 and Chapter 13 Bankruptcy

In Glendale, as in the rest of the United States, two primary types of bankruptcy are available to individuals: Chapter 7 and Chapter 13. Each chapter has its own eligibility requirements and serves different purposes.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, is designed to discharge unsecured debts, such as credit card debts and medical bills. To qualify for Chapter 7 bankruptcy in Glendale, you must meet specific income criteria established by the Means Test. The Means Test calculates whether your income is below the median income for your household size in Arizona or if you have enough disposable income to repay a portion of your debts.

If your income is below the median income, you typically qualify for Chapter 7 bankruptcy. However, if your income exceeds the median, you may still qualify if your disposable income, after deducting certain allowable expenses, does not leave you with the ability to pay a significant portion of your unsecured debts.

It’s important to note that even if you qualify for Chapter 7, not all debts may be dischargeable. Some non-dischargeable debts, such as student loans, child support, and certain tax debts, will remain your responsibility.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, also known as reorganization bankruptcy, is an option for those who do not qualify for Chapter 7 or for individuals who want to protect valuable assets, such as a home facing foreclosure. To qualify for Chapter 13 bankruptcy in Glendale, you must have a regular source of income and be able to create a feasible repayment plan to pay off a portion of your debts over a three- to five-year period.

Unlike Chapter 7, Chapter 13 does not have strict income limits. Instead, the focus is on your ability to make monthly payments to creditors under the proposed plan. If you can demonstrate that you have enough income to cover your necessary living expenses and make payments under the plan, you may be eligible for Chapter 13.

Additional Eligibility Considerations:

1. Credit Counseling: Before filing for bankruptcy, individuals in Glendale, AZ, and throughout the United States are required to complete credit counseling with an approved agency. This counseling helps assess whether bankruptcy is the right option and provides valuable financial education.
2. Prior Bankruptcy Filings: There are limitations on how often you can file for bankruptcy. If you have previously filed for bankruptcy and received a discharge, there are waiting periods before you can file again. For instance, if you received a Chapter 7 discharge, you must wait eight years before filing another Chapter 7 case. If you received a Chapter 13 discharge, you must wait two years before filing another Chapter 13 case.
3. Good Faith: When filing for bankruptcy, you must do so in good faith and not engage in fraudulent or abusive practices. Courts will scrutinize your case to ensure that you are not attempting to misuse the bankruptcy process.
4. Business Bankruptcy: Qualifications for bankruptcy also apply to businesses in Glendale. Depending on the structure of the business (e.g., sole proprietorship, partnership, corporation), different rules and chapters may apply.
5. Legal Assistance: It’s highly recommended to consult with an experienced bankruptcy attorney in Glendale. They can evaluate your specific financial situation, guide you through the eligibility requirements, and help you navigate the bankruptcy process effectively.

Qualifying for bankruptcy in Glendale, AZ, involves meeting specific income and eligibility criteria depending on the chapter of bankruptcy you intend to file. The Means Test determines your eligibility for Chapter 7, while the ability to create a feasible repayment plan is crucial for Chapter 13. Understanding these qualifications, along with other considerations such as prior bankruptcy filings and credit counseling, is essential when considering bankruptcy as a solution to your financial difficulties. Consulting with a knowledgeable bankruptcy attorney is a wise step to ensure you make the right decision and follow the appropriate legal procedures.

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

Filing for bankruptcy in Glendale, Arizona, is a complex legal process, and while it is possible to file without an attorney, it’s highly advisable to seek legal representation. While there is no legal requirement to have a lawyer, there are several compelling reasons why hiring an experienced bankruptcy attorney in Glendale is often a wise choice:

1. Understanding the Bankruptcy Code:

• The U.S. Bankruptcy Code is intricate and filled with legal jargon. An experienced attorney understands the code, its nuances, and how it applies to your specific situation. They can navigate through the complexities to ensure your case is filed correctly.

2. Protecting Your Assets:

• A bankruptcy attorney can help you understand your rights and exemptions under Arizona’s bankruptcy laws. This knowledge is crucial in protecting your assets from being liquidated or seized during the bankruptcy process. They can guide you in making strategic decisions to safeguard your property.

3. Avoiding Costly Mistakes:

• Filing for bankruptcy involves a significant amount of paperwork and legal documentation. Even small mistakes or omissions can lead to delays, complications, or even the dismissal of your case. An attorney’s expertise minimizes the risk of such errors, ensuring a smoother process.

4. Personalized Guidance:

• Every bankruptcy case is unique, and what may work for one person may not be suitable for another. An attorney can assess your individual financial situation, recommend the most appropriate chapter of bankruptcy (Chapter 7 or Chapter 13), and tailor a strategy that best fits your needs.

5. Handling Creditor Actions:

• Creditors may challenge your bankruptcy filing, claiming that certain debts should not be discharged. An attorney can advocate on your behalf, negotiating with creditors and addressing objections effectively. They can also help you respond to any lawsuits or motions filed by creditors.

6. Avoiding Courtroom Pitfalls:

• Bankruptcy hearings and court proceedings can be intimidating and unfamiliar for those not well-versed in the legal system. An attorney can represent you in court, ensuring that your rights are protected and your case is presented professionally.

7. Expert Negotiation Skills:

• Bankruptcy often involves negotiations with creditors, trustees, and other parties. An experienced attorney can leverage their negotiation skills to obtain the best possible outcome, whether it’s reducing the amount you owe or extending repayment terms.

8. Legal Guidance Beyond Filing:

• The bankruptcy process doesn’t end with the filing. Attorneys can provide guidance on rebuilding your credit, managing your finances post-bankruptcy, and making informed financial decisions for a brighter future.

9. Peace of Mind:

• Bankruptcy can be emotionally and mentally taxing. Having an attorney by your side can provide peace of mind, knowing that you have a knowledgeable advocate working to resolve your financial issues.

10. Compliance with Legal Requirements:

• Bankruptcy laws are subject to change, and court procedures may vary. An attorney stays updated on these changes and ensures your case complies with all current legal requirements.

While it is technically possible to file for bankruptcy without an attorney, the risks of doing so can be substantial. Mistakes in the bankruptcy process can have long-lasting consequences on your financial future. Hiring an experienced bankruptcy attorney in Glendale, AZ, is an investment in your financial well-being, helping you navigate the complexities of the system, protect your assets, and achieve a successful bankruptcy outcome.

Cost to File Chapter 7 Bankruptcy in Glendale, AZ

The cost to file Chapter 7 bankruptcy in Glendale, Arizona, consists of several components, including court filing fees, credit counseling fees, and attorney fees if you choose to hire a bankruptcy attorney. It’s essential to understand these costs before proceeding with your bankruptcy filing.

1. Court Filing Fees:
   • The standard court filing fee for a Chapter 7 bankruptcy case in Arizona is $390. This fee is payable to the U.S. Bankruptcy Court for the District of Arizona and is non-negotiable. It’s important to check for any updates or changes in filing fees since fees may vary over time.
2. Credit Counseling and Financial Management Course Fees:
   • Before filing for Chapter 7 bankruptcy, individuals are required to complete two mandatory credit counseling courses. These courses typically cost around $58 to $118 each, depending on the service provider you choose. These fees are paid directly to the credit counseling agencies and may be waived or reduced for individuals with low income.
3. Attorney Fees:
   • While you are not legally required to hire an attorney to file for Chapter 7 bankruptcy, it is strongly recommended due to the complexities of the process. Attorney fees can vary widely depending on the attorney’s experience and the complexity of your case. On average, you can expect attorney fees for Chapter 7 bankruptcy in Glendale, AZ, to range from $1,150 to $2,850 or more. Some attorneys offer payment plans to make their services more affordable.
4. Additional Costs:
   • There may be additional costs associated with your bankruptcy case, such as fees for obtaining credit reports, notary fees, and mailing expenses. These costs can vary depending on your specific circumstances.
5. Exemption Costs:
   • In Chapter 7 bankruptcy, you can protect certain property using exemptions provided by Arizona law. If you have assets that exceed the allowed exemptions, you may need to consider the cost of surrendering non-exempt property or paying the trustee to retain it.

It’s important to note that if you are unable to afford the court filing fee or credit counseling fees due to financial hardship, you may be eligible for fee waivers or reductions. You can request these waivers from the court or credit counseling agencies, and eligibility is typically determined based on your income and financial situation.

Cost to File Chapter 11 Bankruptcy in Glendale, AZ

Filing for Chapter 11 bankruptcy in Glendale, Arizona, is a complex and costly process, primarily designed for businesses and individuals with significant debts who want to reorganize their financial affairs. The cost of filing for Chapter 11 bankruptcy can be substantial due to its complexity and the involvement of multiple parties. Here’s an overview of the key costs associated with a Chapter 11 bankruptcy filing:

1. Attorney Fees:
   • The most significant cost in a Chapter 11 bankruptcy case is typically attorney fees. Chapter 11 cases are intricate and require specialized legal expertise. The complexity of the case, the size of the business or individual’s financial affairs, and the scope of legal work required all influence attorney fees. For businesses, these fees can range from tens of thousands to hundreds of thousands of dollars or more. Individual filers may also face substantial attorney fees, although they tend to be lower than those for businesses.
2. Court Filing Fees:
   • The U.S. Bankruptcy Court charges filing fees for Chapter 11 cases. The fees vary depending on the type of case and the amount of debt involved. The basic filing fee for a Chapter 11 case is $1,990. This fee does not include additional fees for certain motions, filings, or administrative expenses that may arise during the bankruptcy process.
3. U.S. Trustee Fees:
   • In Chapter 11 cases, the U.S. Trustee’s Office oversees the administration of the case. Businesses are required to pay quarterly fees to the U.S. Trustee based on their disbursements or gross income, and individuals may be subject to similar fees based on their income.
4. Professional Fees:
   • In complex Chapter 11 cases, it is common for debtors to hire various professionals, such as accountants, appraisers, and financial advisors, to assist with the reorganization process. The cost of these professionals can add significantly to the overall expenses of the case.
5. Creditors’ Committee Expenses:
   • In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of unsecured creditors. The debtor typically bears the cost of the committee’s legal and professional fees.
6. Administrative Expenses:
   • There are ongoing administrative expenses associated with Chapter 11 cases, such as maintaining a Chapter 11 trustee (if appointed), paying rent, utilities, and employee salaries. These expenses must be budgeted and paid as part of the reorganization plan.
7. Plan Confirmation Costs:
   • Costs may be incurred in the process of developing and confirming the Chapter 11 reorganization plan, including expenses related to soliciting creditor votes and negotiating plan terms.
8. Credit Counseling and Financial Management Courses:
   • Individuals filing for Chapter 11 bankruptcy are required to complete credit counseling and financial management courses, which come with associated fees.

It’s essential to note that the actual costs of a Chapter 11 bankruptcy case can vary widely based on the unique circumstances of the debtor and the complexity of the case. Business entities and high-net-worth individuals with extensive assets or debts can expect higher costs. While Chapter 11 bankruptcy can be expensive, it may be a necessary and viable option for those facing overwhelming financial challenges and seeking to restructure their obligations.

Cost to File Chapter 13 Bankruptcy in Glendale, AZ

Filing for Chapter 13 bankruptcy in Glendale, Arizona, involves several costs and fees, but it’s often a more affordable option compared to Chapter 11 bankruptcy. Chapter 13 bankruptcy is primarily designed for individuals who have a regular source of income and want to restructure their debts through a repayment plan. Here’s a breakdown of the key costs associated with filing for Chapter 13 bankruptcy:

1. Attorney Fees:
   • Attorney fees for Chapter 13 bankruptcy in Glendale, AZ, can vary depending on the complexity of your case and the attorney’s experience. On average, you can expect attorney fees to range from $2,480 to $4,680 or more. Attorneys typically offer payment plans to make their services more accessible to clients. It’s highly recommended to hire an experienced bankruptcy attorney to ensure the success of your Chapter 13 case.
2. Court Filing Fees:
   • The court filing fee for a Chapter 13 bankruptcy case in Arizona is $360. This fee is paid to the U.S. Bankruptcy Court for the District of Arizona. It’s important to verify the current filing fee with the court, as fees may change over time.
3. Credit Counseling and Financial Management Course Fees:
   • Before filing for Chapter 13 bankruptcy, individuals are required to complete two mandatory credit counseling courses. These courses typically cost around $65 to $120 each. Some credit counseling agencies may offer reduced fees for individuals with low income.
4. Chapter 13 Plan Payments:
   • A significant portion of the cost of Chapter 13 bankruptcy is the repayment plan itself. In Chapter 13, you propose a plan to repay your debts over a three- to five-year period. The amount of your plan payments will depend on your income, expenses, and the amount of debt you owe. Your bankruptcy attorney will help you create a feasible plan that complies with bankruptcy laws.
5. Trustee Fees:
   • In Chapter 13 cases, a bankruptcy trustee is appointed to oversee the administration of the case and distribute plan payments to creditors. The trustee is entitled to a fee, which is typically a percentage of the plan payments. This fee is included in your plan payments, so you don’t have to pay it separately.
6. Modification or Conversion Fees:
   • If you need to modify your Chapter 13 plan or convert your case to Chapter 7 for any reason, there may be additional fees associated with these actions.

It’s important to work closely with your bankruptcy attorney to ensure that you understand the total cost of your Chapter 13 bankruptcy case and that you can afford the plan payments and fees associated with the process. Chapter 13 bankruptcy can provide significant debt relief and allow you to retain valuable assets like your home and car, but it’s crucial to have a realistic budget and repayment plan in place.

Reliable Bankruptcy Attorneys in Glendale, AZ

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

Gaudiosi Law
17505 N 79th Ave #207, Glendale, AZ 85308, United States

Hindo Law Group, PLLC
18205 N 51st Ave STE 121, Glendale, AZ 85308, United States

My AZ Lawyers
20325 N 51st Ave #134, Glendale, AZ 85308, United States

Perez Law Group, PLLC
7508 N 59th Ave, Glendale, AZ 85301, United States

The Law Office Of Larry P. Karandreas PLLC
20325 N 51st Ave Ste 134, Glendale, AZ 85308, United States

Glendale, AZ Zip Codes We Proudly Serve:

85031, 85033, 85037, 85301, 85302, 85303, 85304, 85305, 85306, 85307, 85308, 85309, 85310, 85335, 85340, 85345, 85355, 85381, 85382, 85383

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