If you’re considering filing bankruptcy in Mesa, 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 Mesa, Arizona, or anywhere else in the United States, involves meeting certain eligibility criteria, primarily determined by your financial situation and the type of bankruptcy you wish to file. Bankruptcy is a legal process designed to provide individuals and businesses with a fresh financial start when they are overwhelmed by debt. In Mesa, as in the rest of the country, the two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. Each has its own set of eligibility requirements and considerations.

Chapter 7 Bankruptcy Eligibility in Mesa, AZ:

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed for individuals who are unable to pay their debts and wish to have most of their debts discharged. To qualify for Chapter 7 bankruptcy in Mesa, you must meet specific requirements:

1. Means Test: The means test is a critical eligibility factor for Chapter 7 bankruptcy. It compares your income to the median income for your household size in Arizona. If your income falls below the median, you generally qualify for Chapter 7. If your income is above the median, you may still qualify based on your expenses and disposable income.
2. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing your bankruptcy petition.
3. Previous Bankruptcy Discharge: If you’ve previously received a Chapter 7 discharge, you may need to wait eight years from the date of your previous filing to file for Chapter 7 again.
4. Financial Records: You’ll need to provide detailed financial records, including income, expenses, assets, and liabilities, as part of your bankruptcy filing.
5. Exemptions: Arizona has its own set of exemptions that determine what property you can keep when filing for Chapter 7 bankruptcy. Understanding these exemptions is essential to protect your assets.

Chapter 13 Bankruptcy Eligibility in Mesa, AZ:

Chapter 13 bankruptcy, often called a reorganization bankruptcy, is for individuals with a regular income who want to restructure their debts and create a manageable repayment plan. To qualify for Chapter 13 bankruptcy in Mesa, you must:

1. Regular Income: You must have a consistent source of income that allows you to make monthly payments as part of your repayment plan.
2. Debt Limits: Your unsecured debts (like credit card debt and medical bills) must be less than $494,700, and your secured debts (like mortgages and car loans) must be less than $1,490, 550. These figures are subject to change due to inflation adjustments.
3. Credit Counseling: Like Chapter 7, you must complete credit counseling within 180 days before filing for Chapter 13 bankruptcy.
4. Filing Requirements: Ensure that all required documents, including a proposed repayment plan, are filed correctly and in accordance with the court’s procedures.

To qualify for bankruptcy in Mesa, AZ, you must meet specific eligibility criteria depending on the type of bankruptcy you intend to file. Chapter 7 is for individuals with financial hardship, while Chapter 13 is for those with a regular income seeking debt reorganization. Consult with a bankruptcy attorney to assess your eligibility and explore the best path forward based on your unique financial circumstances.

RESOURCES:

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

While it is possible to file for bankruptcy in Mesa, Arizona, without an attorney, the decision to do so should not be taken lightly. The bankruptcy process is complex, with numerous legal requirements and potential pitfalls. Whether you need a lawyer to file for bankruptcy in Mesa depends on your individual circumstances, but there are several key factors to consider when making this decision.

1. Understanding the Legal Process: Bankruptcy law is intricate and involves a significant amount of paperwork, legal terminology, and court procedures. An experienced bankruptcy attorney has a deep understanding of the law and can guide you through the process, ensuring you meet all the necessary requirements and deadlines.

2. Assessing Your Eligibility: Determining whether you qualify for Chapter 7 or Chapter 13 bankruptcy can be challenging, as it depends on various factors such as your income, expenses, and the nature of your debts. An attorney can help you assess your eligibility, choose the most suitable chapter, and navigate the means test, if applicable.

3. Protecting Your Assets: In bankruptcy, you’ll need to understand the exemptions available in Arizona to protect your assets from liquidation. An attorney can help you maximize the use of exemptions to retain as much property as possible while still receiving the benefits of bankruptcy.

4. Preparing and Filing the Necessary Documents: Bankruptcy involves a substantial amount of paperwork, including the bankruptcy petition, schedules, and financial statements. A bankruptcy attorney can ensure that all documents are correctly prepared, filed with the court, and submitted within the required timeframes.

5. Handling Creditor Communications: Once you file for bankruptcy, creditors are generally prohibited from contacting you or taking further collection actions. An attorney can manage communications with creditors, relieving you of the stress of dealing with aggressive collection efforts.

6. Navigating Court Proceedings: Bankruptcy often involves court hearings, meetings of creditors, and negotiations with bankruptcy trustees. An attorney can represent you in these proceedings, making sure your rights are protected and your interests are advocated for effectively.

7. Formulating a Repayment Plan (Chapter 13): If you’re filing for Chapter 13 bankruptcy, you’ll need to create a repayment plan that outlines how you will pay back your debts over a specified period. Crafting a feasible plan that satisfies the court’s requirements is a task best handled by an attorney.

8. Avoiding Mistakes and Pitfalls: Bankruptcy laws are strict, and even small errors or omissions in your paperwork or filings can lead to complications or even case dismissal. A bankruptcy attorney’s experience can help you avoid costly mistakes.

9. Post-Bankruptcy Planning: Bankruptcy has long-term financial implications, and an attorney can provide guidance on rebuilding your credit, managing finances after bankruptcy, and ensuring you make the most of your fresh start.

10. Cost-Benefit Analysis: While hiring a bankruptcy attorney involves costs, it’s essential to consider the potential savings and benefits they can provide. An attorney may help you discharge more debt, protect more assets, and navigate the process more smoothly, potentially saving you money in the long run.

While it is possible to file for bankruptcy in Mesa, AZ, without an attorney, the complexity of the process and the potential consequences of mistakes make it advisable to seek legal counsel. An experienced bankruptcy attorney can provide valuable guidance, protect your rights, and help you achieve the best possible outcome for your financial situation. Before making a decision, consult with a qualified attorney to assess your specific circumstances and discuss the best course of action for your bankruptcy case.

Cost to File Chapter 7 Bankruptcy in Mesa, AZ

The cost to file for Chapter 7 bankruptcy in Mesa, Arizona, includes several fees and expenses that you should be aware of when considering this legal process. It’s important to note that the fees associated with Chapter 7 bankruptcy are subject to change, and it’s essential to consult with a bankruptcy attorney or check the latest fee schedule on the official website of the United States Courts for the most up-to-date information.

Here are the primary costs associated with filing Chapter 7 bankruptcy in Mesa, AZ:

1. Filing Fee: The primary fee is the filing fee, which is paid to the bankruptcy court. The filing fee for Chapter 7 bankruptcy in Arizona is $398. This fee covers the administrative costs of processing your bankruptcy case.
2. Credit Counseling Fee: Before filing for bankruptcy, you are required to complete a credit counseling course from an approved agency. This course typically costs around $29 to $55. Some agencies may offer fee waivers or reduced fees based on your income.
3. Attorney Fees: While you have the option to file for Chapter 7 bankruptcy pro se (without an attorney), it is highly advisable to hire an experienced bankruptcy attorney. Attorney fees can vary widely, depending on the complexity of your case and the attorney’s experience. The cost of hiring an attorney for a Chapter 7 bankruptcy typically ranges from $1,170 to $2,930 or more.
4. Additional Costs: In addition to the above fees, you may incur other costs, such as fees for obtaining credit reports, notary services, postage, and any required financial management courses after filing for bankruptcy. These additional costs can vary depending on your specific circumstances.
5. Chapter 7 Trustee Fee: In some cases, a Chapter 7 trustee may be appointed to oversee your bankruptcy case. The trustee’s fee is typically a percentage of the assets they liquidate to pay off your creditors. However, Chapter 7 cases involving consumer debtors often involve few, if any, assets for liquidation, so trustee fees may not be a significant factor for most individuals filing for Chapter 7.

Bankruptcy can provide a fresh financial start for individuals overwhelmed by debt, but it’s crucial to weigh the costs against the potential benefits and consult with a qualified attorney to navigate the process successfully while minimizing expenses. Additionally, be aware that bankruptcy laws and fees may change over time, so staying informed about current regulations is essential when considering bankruptcy in Mesa, AZ.

Cost to File Chapter 11 Bankruptcy in Mesa, AZ

Filing for Chapter 11 bankruptcy in Mesa, Arizona, is a complex and expensive process primarily designed for businesses and individuals with substantial assets and debts. Chapter 11 allows for debt reorganization and restructuring, allowing the debtor to continue operating while repaying creditors over time. The cost of filing for Chapter 11 bankruptcy can be substantial, and it varies depending on the complexity of the case and the specific circumstances of the debtor. Here are the key costs associated with filing Chapter 11 bankruptcy in Mesa:

1. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in the United States is $2,020. However, this fee can change over time, so it’s essential to check the most recent fee schedule on the official website of the United States Courts.
2. U.S. Trustee Fees: In Chapter 11 cases, the debtor is typically required to pay quarterly fees to the U.S. Trustee’s office. These fees are calculated based on the debtor’s disbursements and can vary widely. The U.S. Trustee monitors the case and ensures compliance with bankruptcy laws.
3. Legal and Professional Fees: Chapter 11 bankruptcy is highly complex and often involves significant legal and professional expenses. Debtors typically hire bankruptcy attorneys, accountants, financial advisors, and other professionals to assist with the reorganization process. The cost of legal and professional services can vary widely depending on the complexity of the case and the professionals’ hourly rates.
4. Court-Appointed Professionals: In some cases, the bankruptcy court may appoint additional professionals, such as an examiner or trustee, to oversee the case. These professionals are compensated for their services, and their fees are typically paid from the debtor’s assets.
5. Administrative Expenses: Debtors are responsible for covering various administrative expenses related to the bankruptcy case, including court costs, mailing expenses, and other administrative tasks.
6. Plan Confirmation Costs: If the debtor proposes a Chapter 11 plan for reorganizing and repaying creditors, there may be additional legal and administrative costs associated with drafting, filing, and seeking court approval of the plan.
7. Creditor Committee Expenses: In some Chapter 11 cases, a committee of unsecured creditors may be formed to represent the interests of all unsecured creditors. The debtor is generally responsible for paying the reasonable expenses of the creditor committee.
8. Post-Petition Operating Expenses: During the Chapter 11 process, the debtor must continue operating its business or managing its assets. These ongoing operational costs, including payroll, rent, and utilities, must be covered.

It’s important to note that Chapter 11 bankruptcy cases can be lengthy and complex, and the costs associated with them can add up quickly. In many cases, businesses and individuals filing for Chapter 11 bankruptcy seek to negotiate with creditors and develop a reorganization plan that allows them to continue their operations while repaying debts over time.

Cost to File Chapter 13 Bankruptcy in Mesa, AZ

The cost to file for Chapter 13 bankruptcy in Mesa, Arizona, involves several fees and expenses that individuals considering this form of bankruptcy should be aware of. Chapter 13 bankruptcy is designed for those with regular income who want to create a manageable repayment plan for their debts.

Below are the key costs associated with filing Chapter 13 bankruptcy in Mesa:

1. Filing Fee: The primary fee for filing a Chapter 13 bankruptcy case is the court filing fee. The filing fee for a Chapter 13 bankruptcy case in the United States is $370. However, it’s essential to verify the current fee on the official website of the United States Courts, as fees can change over time.
2. Attorney Fees: While it is possible to file for Chapter 13 bankruptcy without an attorney (pro se), it is strongly recommended to hire an experienced bankruptcy attorney to navigate the process successfully. Attorney fees for Chapter 13 cases can vary widely depending on the complexity of your case and your attorney’s rates. Typical attorney fees for Chapter 13 bankruptcy in Mesa, AZ, may range from $2,890 to $5,770 or more.
3. Credit Counseling and Financial Management Course Fees: Before filing for Chapter 13 bankruptcy, you are required to complete a credit counseling course from an approved agency. This typically costs around $32 to $58. Additionally, you must complete a financial management course after filing, which may cost a similar amount.
4. Trustee Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan. The trustee receives compensation for their services, which is typically a percentage of the payments made to creditors through the plan. These fees are included in your repayment plan, so they are not paid separately.
5. Court Costs and Administrative Expenses: You may incur additional costs related to court filings, postage, and other administrative expenses associated with your Chapter 13 case.
6. Mandatory Credit Report: As part of the bankruptcy process, you may be required to obtain a copy of your credit report for the court. This can cost around $35 or more.
7. Plan Modification Fees: If you need to modify your Chapter 13 repayment plan due to changes in your financial situation, there may be additional fees associated with filing plan modifications.
8. Conversion to Chapter 7: If you need to convert your Chapter 13 case to Chapter 7 for any reason, there may be fees associated with that process as well.

Chapter 13 bankruptcy can provide individuals with a structured way to repay their debts over a period of three to five years, while also protecting their assets. However, understanding the costs and requirements associated with Chapter 13 bankruptcy is essential before proceeding with the filing process. Consulting with an experienced attorney can help you navigate the complexities of Chapter 13 bankruptcy in Mesa, AZ, and make informed decisions about your financial future.

Reliable Bankruptcy Attorneys in Mesa, AZ

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

Mesa Bankruptcy Lawyers
4065 E University Dr #500, Mesa, AZ 85205, United States

Chapter Bankruptcy Lawyers Mesa
3707 E Southern Ave UNIT 1108, Mesa, AZ 85206, United States

Atchley Law Firm, PLC
7255 E Hampton Ave STE 127, Mesa, AZ 85209, United States

Cox Law Offices
240 E Coury Ave #130, Mesa, AZ 85210, United States

Mortensen Law Offices, PLLC
1901 E University Dr #360, Mesa, AZ 85203, United States

Mesa, AZ Zip Codes We Proudly Serve:

85120, 85142, 85201, 85202, 85203, 85204, 85205, 85206, 85207, 85208, 85209, 85210, 85212, 85213, 85215, 85233, 85234, 85281, 85283

---