How Declaring Chapter 7 in Phoenix Can Provide Debt Relief

Declaring Chapter 7

The Phoenix Chapter 7 lawyers at Lerner and Rowe Law Group allow you to file for Chapter 7 bankruptcy protection quickly with zero money down on attorney fees. This is a significant help, as those who are considering bankruptcy often do not have the means to pay a lawyer right away. 

Our legal team is available 24/7 to set up your free debt evaluation and consultation. Get on the road to debt relief by calling 602-667-7777, filling out this FREE online form, or texting through LiveChat.

What Is Chapter 7 Bankruptcy?

When you file Chapter 7 bankruptcy, also known as a liquidation bankruptcy, most of your debt could be either discharged or canceled. Conversely, other types of bankruptcy (such as Chapter 13) require you to file a repayment plan, but Chapter 7 does not. 

Some who file are at risk of losing non-exempt property, which may be liquidated to pay back some of your creditors. But with the help of the Arizona debt relief lawyers at Lerner and Rowe Law Group on your side, you may be able to avoid losing property and start fresh. 

How Can Declaring Chapter 7 Bankruptcy in Phoenix Provide Debt Relief?

Many people think filing bankruptcy is a bad thing. However, it can be a useful tool when debt becomes overwhelming. Sometimes, debts pile up due to a number of factors, including a sudden pay cut, injury, or divorce. When this happens, individuals may find themselves harassed by collectors and unable to make ends meet. 

However, if you file Chapter 7 bankruptcy, Arizona’s court will send a notice to all your creditors, halting the harassment. This is known as the automatic stay. Then, you will need to wait until the bankruptcy court discharges your debt. Sometimes the wait can take up to six months. But, if you win your case and have a great lawyer on your side, you may see a significant amount of debt disappear.

Remember: not all debt can be eliminated through Chapter 7 bankruptcy. Alimony, child support, most taxes, and most student loans are among the debts that cannot be forgiven in this manner. 

When Should You File for Chapter 7 Bankruptcy?

File for Chapter 7 bankruptcy if you are struggling to pay off:

  • Title loans
  • Utility bills

How to File for Chapter 7 Bankruptcy in Phoenix

Once you have decided to file and delcare Chapter 7 bankruptcy, you will have to take an approved credit counseling course within six months before your case is filed with the Bankruptcy Court. You will also complete extensive paperwork to be filed with the Court that includes listing all of your assets (and claiming your protected assets), listing all of your creditors, listing all of your outstanding leases and contracts, and completing a series of financial questions.

You will also have to pass a Means Test to qualify for Chapter 7 bankruptcy relief.

After your bankruptcy case is filed, you will receive the benefit of an automatic stay to keep your creditors from harassing you. You will be required to take a second course called the Financial Management course or the Debtor Education course. You will also be required to attend a Meeting of Creditors conducted by a bankruptcy trustee assigned to your case.

The Meeting of Creditors is an opportunity for the bankruptcy trustee assigned to your case to ask you questions about your bankruptcy, as well as an opportunity for your creditors to ask you questions. The Meeting of Creditors will take place approximately 30-40 days after your case is filed. You will become eligible for your discharge to be entered after 60 days from your Meeting of Creditors.

The entry by the Court of the Order of Discharge is your goal. Once the Order of Discharge is entered, you are relieved from your personal responsibility to repay your discharge debts. Remember, not all debts are discharged in bankruptcy, but most should be. Also know that just because you receive your discharge, your case may not be over.

Your case is not over until your bankruptcy trustee has completed his/her duties which may include selling your non-exempt property and paying creditors.

Is Bankruptcy Right For You?

How Do Phoenix Chapter 7 Lawyers Help?

When you work with a debt relief lawyer at Lerner and Rowe Law Group, you will receive assistance throughout the bankruptcy process outlined above. For example, we will complete and file the documents for you. We will help you know when and where your hearing is. We will be by your side as you speak with your trustee, and fight for your case if creditors push back. 

In some cases, a lawyer can also help you negotiate with creditors to buy back the property you lose throughout the process at its fair market value.

Contact Lerner and Rowe Law Group Today

The Phoenix debt relief lawyers at Lerner and Rowe Law Group are available 24/7, every single day of the year. So, whenever you need help seeking out debt relief, give us a call at 602-667-7777. You can also set up your free case evaluation and consultation by filling out this FREE online form or connecting through LiveChat. Our award-winning representation will help you work towards your financial goals with a Chapter 7 bankruptcy.