If you’re considering filing bankruptcy in Phoenix, 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 Phoenix, AZ, hinges on several factors related to your financial situation. Bankruptcy is not a one-size-fits-all solution, and the type of bankruptcy you’re eligible for may vary based on your circumstances. Here’s a brief overview of who is qualified to file bankruptcy in Phoenix:

1. Chapter 7 Bankruptcy:
   • To file for Chapter 7 bankruptcy, you must pass the means test. This test compares your income to the median income in Arizona for a household of your size. If your income falls below the median, you likely qualify. If it’s above, you may still qualify based on your disposable income after allowable expenses.
   • Certain individuals with primarily business debts or who have completed a previous Chapter 13 bankruptcy may not need to pass the means test.
2. Chapter 11 Bankruptcy:
   • Chapter 11 bankruptcy is primarily for businesses and allows for debt reorganization. Individuals with significant debt may also use Chapter 11.
   • Qualification for Chapter 11 is not based on income like Chapter 7 but rather on the financial viability and need for reorganization.
3. Chapter 13 Bankruptcy:
   • Chapter 13 is designed for individuals with a regular income who want to restructure their debts. You can qualify for Chapter 13 if your secured and unsecured debts fall within specific limits set by the bankruptcy code.
   • You must also have the ability to make the proposed repayment plan payments.
4. Exemptions and Non-Dischargeable Debts:
   • Some debts, like student loans and recent tax obligations, may not be dischargeable in bankruptcy.
   • You’ll also need to ensure your assets don’t exceed the allowed exemptions. In Arizona, you can choose between federal or state exemptions to protect certain property.

It’s essential to consult with a bankruptcy attorney to determine your eligibility accurately. They can assess your financial situation, guide you through the process, and help you choose the most suitable bankruptcy chapter for your needs.

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

While it is possible to file for bankruptcy in Phoenix, AZ without an attorney (pro se), it’s highly advisable to seek legal representation. Here’s why:

1. Complexity of Bankruptcy Laws: Bankruptcy laws are intricate and subject to frequent changes. An experienced bankruptcy attorney understands the nuances and can navigate the process efficiently.
2. Error Prevention: Making errors on your bankruptcy petition or missing crucial deadlines can have serious consequences, including case dismissal or losing valuable assets. An attorney helps prevent these errors.
3. Debt Assessment: An attorney can assess your financial situation and recommend the most appropriate bankruptcy chapter for your specific circumstances, ensuring you make informed decisions.
4. Creditor Negotiations: Attorneys can negotiate with creditors on your behalf, potentially reducing the amount you owe or securing more favorable repayment terms.
5. Legal Protections: A lawyer ensures your rights are protected throughout the bankruptcy process and helps you avoid potential legal pitfalls.
6. Complex Cases: If your case is complex, such as a business bankruptcy or high-value assets, legal expertise becomes even more critical.

While hiring an attorney involves fees, these costs are often justified by the benefits of professional guidance and the potential for a more successful outcome. Additionally, low-income individuals may qualify for fee waivers or reduced fees in certain cases.

Ultimately, consulting with a bankruptcy attorney in Phoenix is a wise decision to navigate the process smoothly and maximize the benefits of bankruptcy while minimizing its drawbacks.

Cost to File Chapter 7 Bankruptcy in Phoenix, AZ

The cost to file Chapter 7 bankruptcy in Phoenix, AZ includes several fees:

1. Filing Fee: The primary fee is the filing fee, which was $395 for Chapter 7 bankruptcy cases. This fee covers the administrative costs of processing your bankruptcy petition.
2. Credit Counseling and Debtor Education: You are required to complete credit counseling and debtor education courses, which typically cost around $25 to $60 for each course. These costs may vary depending on the service provider you choose.
3. Attorney Fees: If you hire an attorney to assist with your Chapter 7 bankruptcy case, you’ll need to pay attorney fees. Attorney fees can vary widely based on the complexity of your case and the attorney’s experience. On average, you might expect to pay between $1,115 and $2,890 for legal representation.

Please note that these costs may change, so it’s essential to check the latest fee schedules from the U.S. Bankruptcy Court for the District of Arizona for the most up-to-date information.

Cost to File Chapter 11 Bankruptcy in Phoenix, AZ

Chapter 11 bankruptcy is primarily used by businesses for debt reorganization, and the costs can be substantial due to its complexity:

1. Filing Fee: The filing fee for Chapter 11 bankruptcy was $1,917. This fee covers the administrative expenses associated with your bankruptcy case.
2. Attorney Fees: Chapter 11 cases often involve intricate legal and financial matters, so attorney fees tend to be high. The cost of legal representation in Chapter 11 can vary significantly based on the complexity of the case and the attorney’s expertise. It’s not uncommon for attorney fees in Chapter 11 cases to run into tens of thousands of dollars or more.
3. Additional Costs: Chapter 11 cases may incur other costs, such as fees for financial advisors, appraisers, and other professionals, depending on the specifics of the case.

Because Chapter 11 bankruptcy is primarily for businesses, the costs can be substantial and should be carefully considered before pursuing this option.

Cost to File Chapter 13 Bankruptcy in Phoenix, AZ

Chapter 13 bankruptcy is designed for individuals with a regular income who want to restructure their debts. The costs associated with Chapter 13 bankruptcy in Phoenix, AZ include:

1. Filing Fee: The filing fee for Chapter 13 bankruptcy was $390. This fee covers the administrative expenses of processing your bankruptcy petition.
2. Attorney Fees: The cost of hiring an attorney for Chapter 13 bankruptcy varies, but it is generally more affordable than Chapter 11. Attorney fees typically range from $2,990 to $6,500 or more, depending on the complexity of your case and the attorney’s fees structure. Many attorneys offer payment plans to make their services more accessible to clients.
3. Credit Counseling and Debtor Education: Similar to Chapter 7, you’ll need to complete credit counseling and debtor education courses, costing around $25 to $60 for each course.

Keep in mind that these costs may have changed since my last update, so it’s essential to verify the current fees and consult with a bankruptcy attorney in Phoenix for the most accurate and up-to-date information regarding Chapter 13 bankruptcy costs.

Reliable Bankruptcy Attorneys in Phoenix, AZ

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

Phoenix Fresh Start Bankruptcy Attorneys

4602 E Thomas Rd, Phoenix, AZ 85018, United States

Leonard V. Sominsky, ESQ., PC

3839 N 3rd St Suite 301, Phoenix, AZ 85012, United States

Law Office of D.L. Drain, P.A.

2375 E Camelback Rd #600, Phoenix, AZ 85016, United States

Ellett Law Offices, P.C.

2999 N 44th St #330, Phoenix, AZ 85018, United States

Phoenix, AZ Zip Codes We Proudly Serve:

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