Best Bankruptcy Attorneys in Scottsdale

Frequently Asked Questions

• Where do I file for bankruptcy in Scottsdale, Arizona?

  To file for bankruptcy in Scottsdale, debtors would need to submit their petitions and related documents to the United States Bankruptcy Court for the District of Arizona. The court is located at 230 N. First Avenue, Suite 101, Phoenix, AZ 85003.

• Where can I get bankruptcy forms in Scottsdale, Arizona?

  Scottsdale residents can download bankruptcy forms directly from the United States Bankruptcy Court for the District of Arizona at www.azb.uscourts.gov/forms.

• What are the important considerations Scottsdale debtors should keep in mind prior to initiating Chapter 7 bankruptcy proceedings?

  Prior to initiating Chapter 7 bankruptcy, Scottsdale debtors need to undergo mandatory credit counseling and ensure that all essential documentation is accurately filed in court. Additionally, debtors must determine any applicable fees associated with the filing process. In addition to the credit counseling course, which is mandatory, debtors must also attend a personal financial management instruction course, typically priced at $30.

• Is it possible for Scottsdale debtors to forfeit all their assets when they initiate a Chapter 7 or 13 bankruptcy filing process?

  Scottsdale debtors will not lose all their assets when they file for bankruptcy, specifically under Chapter 7. This type of bankruptcy allows certain properties, including a family home, to be exempt from sale. Furthermore, filing for Chapter 7 triggers an automatic stay, which temporarily halts creditor collections such as eviction or foreclosure. Alternatively, in a Chapter 13 bankruptcy filing, debtors are not required to sell their assets as long as they adhere to the prescribed payment plan.

• Who are qualified to file for Chapter 7 bankruptcy protection in Scottsdale?

  Scottsdale debtors with a monthly income below the adjusted median income in Arizona are granted automatic eligibility for Chapter 7 bankruptcy. Even if their income surpasses the median threshold, they may still qualify for this type of bankruptcy by passing a secondary means test. This additional assessment considers specific expenses such as vehicle loan payments and mandatory payroll deductions.

• Is it a good idea to file for bankruptcy before divorce in Scottsdale?

  Yes. If debtors have a harmonious relationship with their spouses, they have the option of pursuing joint bankruptcy under Chapter 7 prior to initiating divorce proceedings. This approach is cost-effective, as it allows for the simultaneous discharge of unsecured debt accumulated during their marriage. By taking this route, they can avoid the complexities of dividing debts during the divorce process, providing them with peace of mind.

• What property types are exempted from bankruptcy liquidation in Scottsdale?

  The types of property that are exempt from bankruptcy liquidation in Scottsdale include a primary residence or a designated homestead property. Under the homestead exemption, a debtor can protect up to $150,000 in home equity. Additionally, retirement accounts may be considered exempt from liquidation. By engaging the services of a knowledgeable bankruptcy attorney and employing strategic planning, debtors may have the opportunity to transform a non-exempt asset into an exempt one.