How Do I Know If I Am Eligible to File for Bankruptcy in Arizona?
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When financial trouble becomes overwhelming, and you are in danger of losing your home or car, bankruptcy may be a viable option for you and your family to pursue a clean slate.
Determining your eligibility for bankruptcy in Arizona requires a unique approach to outlining your income, assets, and debts, which can be clearly assessed by our experienced Tucson bankruptcy attorney, Eric Ollason, to ensure you are pursuing the proper bankruptcy filing for your needs.
The important thing to understand when considering bankruptcy is, you are not alone.
According to the United States Bankruptcy Courts, nearly 780,000 personal bankruptcy cases were filed throughout the country in 2018; and just over 23,000 businesses applied for the same protection over the same year.
Our law firm understands that financial freedom provides confidence, and we want to help you develop the best plan available for your unique bankruptcy needs, so you can start anew.
Which Bankruptcy Option Applies to My Financial Circumstances?
Bankruptcy can serve as a financial solution for those who are suffering from overwhelming debt, stressful collection calls and notices, and threats of losing their home or vehicle, and requires a real-time approach to establishing your exact financial standing.
Many people are unsure of exactly how in debt they are until they can no longer make even the minimum payments necessary to keep their accounts in good standing while remaining financially stable.
Believe us when we say, you are not the only person to experience this hardship. The more you understand about your income to debt ratio, the more capable you will become in making informed decisions.
To determine which bankruptcy option applies to your unique financial circumstances, we will apply your needs to one of the four major types of bankruptcy, which include:
Chapter 7 bankruptcy is frequently referred to as liquidation bankruptcy. When successfully filed, Chapter 7 bankruptcy discharges most of your unsecured debt, which includes credit card debt, medical bills, and personal loans.
Chapter 11 bankruptcy is a type of reorganization for larger businesses. While some individuals may be eligible for Chapter 11 bankruptcy reorganization it is mainly reserved as a resource for larger organizations.
Chapter 12 bankruptcy only applies to farms. If you are a farmer who needs bankruptcy relief, Chapter 12 bankruptcy may be right for you.
Chapter 13 Bankruptcy allows individuals to obtain the protection of bankruptcy while developing a reorganization plan to partially or fully repay their debt, depending on their circumstances.
Chapter 13 Bankruptcy can be filed by individuals, couple, or sole proprietors who own businesses.
How Will Eric Ollason Help Me Determine Which Bankruptcy Filing is Right for Me?
Whether you are filing as a single individual or as a married couple, our Tucson bankruptcy attorney will begin your assessment using a means test that will determine your eligibility to file for bankruptcy.
That includes comparing your income for the previous six months to your current debt. If you have enough income to gradually pay down your debts, you may be ineligible to file for Chapter 7 bankruptcy. The higher your income is, relative to your debt, the less likely a Chapter 7 filing will be approved by a judge.
Instead, we would consider converting your bankruptcy from Chapter 7 to Chapter 13. Chapter 13 bankruptcy allows you to keep certain assets but requires a portion of what is owed to be repaid in a three-to-five-year period.
If you are over your head in debt, and your quality of life is being compromised because of it, contact our Pima County bankruptcy attorney, Eric Ollason, right away by calling (520) 791-2707 or (520) 389-5241 to schedule a free initial consultation, so we can learn more about your unique financial circumstances. We will provide the answers you need to move forward, so you are no longer being burdened with the unknown. Call us now to get the help you need, so you can get your life back.