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

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a complex legal process that can provide individuals and businesses with a fresh financial start when they are unable to meet their debt obligations. However, not everyone is qualified to file for bankruptcy, and eligibility criteria can vary depending on the type of bankruptcy you are considering. In Tempe, Arizona, as in the rest of the United States, there are specific requirements and considerations for individuals seeking bankruptcy protection.

Chapter 7 vs. Chapter 13:

The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy. The eligibility criteria for each are different:

1. Chapter 7 Bankruptcy:Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is designed to discharge most unsecured debts, such as credit card debt and medical bills. To qualify for Chapter 7 bankruptcy in Tempe, AZ, you must pass the means test. The means test evaluates your income and expenses to determine if you have the means to repay your debts.
   • Means Test: The means test compares your average monthly income over the past six months to the median income for a household of your size in Arizona. If your income is below the median, you generally qualify for Chapter 7. If your income is above the median, you may still qualify if you can demonstrate that you have insufficient disposable income to repay your debts after deducting allowable expenses.
   • No Recent Discharge: You cannot file for Chapter 7 bankruptcy if you have received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years.
2. Chapter 13 Bankruptcy:Chapter 13 bankruptcy, often called “reorganization bankruptcy,” allows individuals to create a repayment plan to catch up on overdue debts while keeping their assets. It may be suitable for those who do not qualify for Chapter 7 or have valuable assets they wish to protect.
   • Steady Income: To qualify for Chapter 13 bankruptcy in Tempe, you need a steady source of income to make monthly plan payments. Your plan typically spans three to five years, during which you must adhere to the agreed-upon repayment schedule.
   • Debt Limits: There are debt limits for Chapter 13 bankruptcy. These limits are subject to change with inflation adjustments.

Additional Considerations:

• Credit Counseling: Before filing for bankruptcy in Tempe, AZ, you must complete a credit counseling course from an approved agency. This requirement aims to ensure that you have explored alternatives to bankruptcy.
• Bankruptcy Attorney: While not a strict eligibility requirement, it is highly advisable to consult with an experienced bankruptcy attorney when considering bankruptcy. An attorney can help you navigate the complex legal process, understand your options, and make informed decisions.
• Honesty and Full Disclosure: Regardless of the type of bankruptcy you file, you must provide accurate and complete information about your financial situation, including your income, assets, debts, and expenses. Failing to do so can result in the dismissal of your case or even criminal charges.
• Automatic Stay: Filing for bankruptcy in Tempe, AZ, triggers an automatic stay, which halts most collection actions by creditors, including lawsuits, wage garnishments, and foreclosure proceedings. This protection is available to eligible filers.

It’s important to note that bankruptcy laws and requirements can change over time, so it’s essential to consult with an attorney or research the most up-to-date information if you are considering bankruptcy. Additionally, bankruptcy can have significant and long-lasting consequences on your credit and financial future, so it should be pursued only after careful consideration and exploration of alternatives. Consulting with a qualified bankruptcy attorney in Tempe, AZ, is a crucial step to help you make an informed decision based on your specific circumstances.

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

While it is not legally required to hire a lawyer to file for bankruptcy in Tempe, Arizona, it is highly advisable and often in your best interest to do so. Filing for bankruptcy is a complex legal process with significant implications for your financial future. Here are several reasons why having an experienced bankruptcy attorney is strongly recommended:

1. Legal Expertise and Knowledge: Bankruptcy law is intricate and subject to frequent changes. A qualified bankruptcy attorney in Tempe, AZ, is well-versed in the specific laws and regulations that apply to your case. They can navigate the legal complexities, ensuring your case is filed correctly and in compliance with all relevant laws and court procedures.
2. Assessment of Your Options: A bankruptcy attorney can help you explore all available options, including Chapter 7 and Chapter 13 bankruptcy, as well as non-bankruptcy alternatives such as debt negotiation or consolidation. They will assess your unique financial situation and advise you on the best course of action based on your goals and circumstances.
3. Means Test Guidance: If you are considering Chapter 7 bankruptcy, your attorney can assist you in completing the means test accurately. This test determines your eligibility by evaluating your income, expenses, and ability to repay debts. An attorney can help you maximize your chances of passing the means test or guide you toward the most suitable bankruptcy chapter if you don’t qualify for Chapter 7.
4. Protection from Errors and Pitfalls: Filing for bankruptcy involves a significant amount of paperwork and documentation. A single mistake or omission on your bankruptcy forms can result in delays, dismissal of your case, or even allegations of fraud. An attorney will ensure that all required documents are prepared accurately and submitted correctly to avoid costly errors.
5. Creditor Communication: Once you hire an attorney, creditors are legally required to communicate with your attorney rather than contacting you directly. This can relieve the stress of constant creditor harassment and ensure that your rights are protected.
6. Asset Protection: Depending on the type of bankruptcy you file, certain assets may be at risk. A bankruptcy attorney can advise you on how to protect your valuable assets, such as your home or car, through exemptions and legal strategies.
7. Repayment Plan Negotiation: In Chapter 13 bankruptcy, you will need to create a repayment plan that outlines how you will pay off your debts over several years. An attorney can help negotiate a feasible plan that fits your budget and ensures you have the best chance of successfully completing your case.
8. Court Representation: If your case requires court appearances or hearings, having an attorney by your side can be invaluable. They will represent your interests, address any objections or challenges from creditors or the trustee, and advocate for your financial well-being.
9. Avoiding Legal Pitfalls: Bankruptcy law is rife with potential pitfalls and complexities that can lead to legal trouble if mishandled. An attorney can help you avoid common traps, such as preferential transfers or fraudulent conveyances, which could result in complications or litigation.
10. Long-Term Financial Planning: Beyond bankruptcy, an attorney can provide guidance on rebuilding your credit, managing your finances, and making informed financial decisions for your future.

Ultimately, whether or not to hire a lawyer when filing for bankruptcy in Tempe, AZ, is a personal decision. However, given the complexity of the bankruptcy process and the potential for long-term financial consequences, consulting with a knowledgeable attorney is a prudent step to ensure that you make the most informed decisions and navigate the bankruptcy process successfully.

Cost to File Chapter 7 Bankruptcy in Tempe, AZ

The cost to file Chapter 7 bankruptcy in Tempe, Arizona, includes several components, but it’s important to note that the fees and expenses associated with bankruptcy can vary depending on your specific circumstances and the complexity of your case.

1. Filing Fee: The primary cost to initiate a Chapter 7 bankruptcy case is the filing fee, which is set by the federal government. The filing fee for Chapter 7 bankruptcy is $355. This fee is payable to the U.S. Bankruptcy Court when you submit your bankruptcy petition. It’s important to check for any fee updates, as these fees may change over time.
2. Credit Counseling and Debtor Education Courses: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses. These courses typically cost between $28 to $58 each and can be completed online, by phone, or in person. Some organizations may offer reduced fees or fee waivers based on your income.
3. Attorney Fees: While not a direct cost of filing bankruptcy, hiring an attorney to guide you through the process is strongly recommended. Attorney fees can vary widely depending on the complexity of your case and the attorney’s experience. On average, you can expect to pay anywhere from $1,150 to $3,750 or more for Chapter 7 bankruptcy representation. Attorneys may offer payment plans to help you manage these costs.
4. Credit Report Fees: Your attorney may obtain a copy of your credit report to ensure that all your creditors are listed in your bankruptcy petition accurately. While not a significant expense, it’s a consideration in the overall cost.
5. Miscellaneous Costs: Depending on your specific situation, there may be additional costs, such as notary fees, postage, and photocopying expenses related to document preparation. These costs are relatively minor but should be factored into your budget.
6. Exemption Costs: If you have non-exempt property (assets that are not protected by bankruptcy exemptions) that you want to keep, you may need to pay the trustee the appraised value of those assets or negotiate a buyback arrangement.

It’s essential to note that Chapter 7 bankruptcy is often referred to as “no-asset” bankruptcy because many filers do not have non-exempt assets that need to be sold to repay creditors. If your case is straightforward and does not involve complex financial issues or disputes, the costs may be lower.

Additionally, if you are unable to afford the filing fee and associated costs, you may qualify for a fee waiver or installment plan for the filing fee. You would need to submit a fee waiver application and meet certain income criteria to qualify.

Cost to File Chapter 11 Bankruptcy in Tempe, AZ

Filing for Chapter 11 bankruptcy in Tempe, Arizona, can be a complex and costly process, primarily because Chapter 11 is typically utilized by businesses and individuals with substantial debts who want to reorganize their finances. The cost of filing for Chapter 11 bankruptcy can vary significantly depending on the complexity of the case and the specific circumstances involved. Here are some key factors to consider when determining the cost of filing for Chapter 11 bankruptcy:

1. Attorney Fees: Hiring an experienced bankruptcy attorney is essential for navigating the intricacies of Chapter 11 bankruptcy. Attorney fees can be substantial, often ranging from tens of thousands to hundreds of thousands of dollars. The exact cost will depend on the complexity of your case, the size of your business or personal estate, and the attorney’s hourly rates or fee structure. Many Chapter 11 cases involve ongoing legal representation, which can result in ongoing legal fees.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is $1,988. This fee is payable to the U.S. Bankruptcy Court when you submit your bankruptcy petition. It’s important to verify the current fee amount, as these fees can change over time.
3. Credit Counseling and Debtor Education Courses: Like other bankruptcy chapters, Chapter 11 filers are required to complete credit counseling and debtor education courses. The cost of these courses is typically between $28 to $58 each.
4. U.S. Trustee Fees: Chapter 11 cases often involve additional fees paid to the U.S. Trustee’s Office for ongoing oversight and administration. These fees can vary based on the size and complexity of the case.
5. Professional Fees: In addition to attorney fees, you may need to hire other professionals, such as financial advisors, accountants, or appraisers, to assist with your bankruptcy case. These professionals can charge substantial fees for their services.
6. Court Costs: There may be court costs associated with various motions, hearings, and other court proceedings throughout the Chapter 11 bankruptcy process.
7. Creditors’ Committee Expenses: If a creditors’ committee is formed in your Chapter 11 case, you may be responsible for certain expenses related to the committee’s participation, such as legal and professional fees.
8. Operational Costs: If your business is continuing operations during the Chapter 11 process, you will need to cover ongoing operational expenses, including payroll, rent, utilities, and other essential costs.
9. Plan Confirmation: The process of developing and confirming a Chapter 11 reorganization plan can be lengthy and costly. This includes expenses related to drafting the plan, obtaining creditor approval, and legal proceedings to confirm the plan.

Before proceeding with a Chapter 11 bankruptcy filing in Tempe, AZ, it is strongly recommended to consult with an experienced bankruptcy attorney who can provide you with a comprehensive understanding of the costs, benefits, and alternatives available in your specific situation. An attorney can help you assess whether Chapter 11 bankruptcy is the right choice and guide you through the process.

Cost to File Chapter 13 Bankruptcy in Tempe, AZ

The cost to file Chapter 13 bankruptcy in Tempe, Arizona, consists of several components, and the exact amount can vary based on your specific circumstances and the legal fees charged by your chosen attorney. Here’s an overview of the key expenses associated with filing for Chapter 13 bankruptcy:

1. Filing Fee: The primary cost to initiate a Chapter 13 bankruptcy case is the filing fee, which is set by the federal government. This fee is paid to the U.S. Bankruptcy Court when you submit your bankruptcy petition. Be sure to check for any fee updates, as these fees may change over time.
2. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and debtor education courses. These courses typically cost between $30 to $60 each and can be completed online, by phone, or in person. Some organizations may offer reduced fees or fee waivers based on your income.
3. Attorney Fees: Hiring a bankruptcy attorney to guide you through the Chapter 13 bankruptcy process is strongly recommended. Attorney fees for Chapter 13 cases can vary based on the complexity of your case, your location, and the attorney’s fee structure. On average, you can expect to pay between $2 760 to $4,890 or more for Chapter 13 representation. Many attorneys offer payment plans to help you manage these costs.
4. Chapter 13 Trustee Fees: In a Chapter 13 bankruptcy case, a trustee is appointed to oversee your repayment plan. The trustee’s fee is typically a percentage of the payments made through your plan. In some cases, this fee may be rolled into your monthly plan payments. The exact percentage can vary but is generally around 10%.
5. Credit Report Fees: Your attorney may obtain a copy of your credit report to ensure that all your creditors are listed in your bankruptcy petition accurately. This is a relatively minor expense but should be included in your budget.
6. Miscellaneous Costs: Depending on your specific situation, there may be additional costs, such as notary fees, postage, and photocopying expenses related to document preparation. These are generally minor costs but should be considered.
7. Plan Payments: Chapter 13 bankruptcy involves creating a repayment plan to pay off a portion of your debts over a period of three to five years. Your monthly plan payments will be determined based on your income, expenses, and the amount of your debt. These payments are a significant part of the overall cost of Chapter 13 bankruptcy, as they go toward repaying your creditors.

It’s important to understand that Chapter 13 bankruptcy is often chosen by individuals who have a regular income but are struggling with overwhelming debt. The repayment plan is a central feature of Chapter 13, allowing you to catch up on arrears for secured debts (like mortgages or car loans) and make more manageable payments on unsecured debts.

Reliable Bankruptcy Attorneys in Tempe, AZ

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

Majors Law Group
4450 S Rural Rd Ste A140, Tempe, AZ 85282, United States

Rock Law
1222 E Baseline Rd UNIT 102, Tempe, AZ 85283, United States

McDonald Law Offices Pllc
1907 E Broadway Rd #1, Tempe, AZ 85282, United States

Quach Law, PLLC
1204 E Baseline Rd UNIT 113, Tempe, AZ 85283, United States

Oswalt Law Group
3933 S McClintock Dr #500, Tempe, AZ 85282, United States

Tempe, AZ Zip Codes We Proudly Serve:

85008, 85034, 85040, 85044, 85201, 85202, 85226, 85281, 85282, 85283, 85284

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