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Chapter 7 Bankruptcy Attorney In Tucson, Arizona

When financial hardship becomes overwhelming, bankruptcy can be a liberating approach to starting anew. With different types of bankruptcy filings to choose from, it is important to understand the difference of each Chapter. Our attorney will explain each aspect of the bankruptcy proceedings, to guide you toward a less stressful financial existence.

Assets and Exempt Items

Chapter 7 Bankruptcy is considered a liquidating bankruptcy proceeding that begins with listing your assets. In a Chapter 7 proceeding, individuals are only able to keep exempt items from liquidation. Those items are declared by Arizona State Law and include:

  • One car, with up to $6,000 in equity value per spouse
  • One homestead with up to $150,000 in equity

All other items will be liquidated and applied to the debt owed, through the bankruptcy trustee. Other items can include anything from family heirlooms to third cars, boats, or second homes. If it is determined that Chapter 7 Bankruptcy filing is right for you, your estate will be valued on the day you file. There should be nothing to account for in the form of bank accounts, stock or bond portfolios, or any items that hold equity value.

Understanding the Chapter 7 Bankruptcy Trustee’s Position

In any Chapter 7 Bankruptcy proceeding, there are representatives on each side of the process, navigating the legal progression. First, our accomplished attorney develops a relationship with our clients to help them understand exactly how the process works, and what to expect going forward, so there are no surprises upon filing. Our goal is to provide our clients with a fresh financial start, so they can begin enjoying life again.

The debtors’ attorneys represent the creditors, which can include financial institutions like Chase Bank, Bank of America, or Ford Motor Company.

In Tucson, Arizona, there are two judges who preside over the bankruptcy process; there is a United States Trustee’s Office included as well. The latter is an arm of the Department of Justice, who protect the Bankruptcy Code from abuse. Their main position is to ensure that the filing party – our client – is not hiding assets, and that each side’s attorney group is practicing properly.

When an individual or couple files for Chapter 7 Bankruptcy, the non-exempt items that can be accounted for, if any, will be liquidated and turned over to the Trustee. Since this is the cornerstone of the legal process, the Trustee will work very hard to ensure that the filer is not withholding non-exempt items. As the representative for our clients, we will do everything we can to provide our clients with the tools they need to understand what filing for a Chapter 7 Bankruptcy means to their livelihood. If there is a single reason that we believe would disrupt this proceeding, we will advise our clients to take another avenue to financial relief.

Declaring Unsecured Debt Versus Secured Debt

Understanding the difference between unsecured debt and secured debt will help our clients understand exactly how to proceed with making a bankruptcy decision.

Secured debt is defined as debt that can be retrieved as collateral in exchange for non-payment. These items include your home or car, or any other item that can be repossessed in the event of non-payment. In essence, the creditor is taking their security back by repossessing a vehicle or foreclosing on a home.

Unsecured debt includes items that cannot be obtained physically in the event of non-payment. These items can include credit card bills, medical bills, legal fees, accountant fees, old cell phone bills, and even old rental agreements.

Moving Forward after Chapter 7 Bankruptcy 

It is important to understand how your financial future will be affected by filing for Chapter 7 Bankruptcy. Our attorney will provide you with all of the information and tools you need to begin a new financial start once the proceedings have ended.

In addition, each person or couple who files for Chapter 7 must complete a course on rebuilding their credit before their filing is discharged. This, along with the information provided by our attorney, will help get you on the right path to rebuilding your financial future.

Keep in mind, once your filing is discharged, creditors will begin extending offers again immediately. This is an attempt to begin the spiral of indebtedness over again. It is important to understand which offers, if any, are right for you, so as not to repeat the cycle.

Hiring the Right Chapter 7 Bankruptcy Attorney

While it is certainly possible to file for a Chapter 7 Bankruptcy without an attorney, we certainly do not advise those who are serious about finding financial freedom to do so. Our firm provides careful leadership and representation to help our clients understand exactly where they stand now and after the proceedings.

The paperwork involved, as well as the financial classifications of exempt and non-exempt assets, can make anyone’s head spin — and that is even before the Trustee becomes involved. If you are considering bankruptcy, we understand that you have enough on your mind already, and are here to help you navigate these trying legal waters fully.

Our Tucson bankruptcy attorney delivers results through experience. Our firm has been helping individuals and families understand their bankruptcy options fully for over twenty years. Our attorney is a board-certified specialist in bankruptcy, and provides exceptional guidance in what we know is no easy matter.

Contact us today at (520) 791-2707 to understand how we can help you move forward with your life, and get on a path to financial health. 

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