Best Bankruptcy Lawyers in Scottsdale

About Bankruptcy Law in Scottsdale, United States

Bankruptcy law in Scottsdale, like the rest of the United States, is primarily governed by federal law under the U.S. Bankruptcy Code. This legal process provides individuals and businesses with a way to eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. In Scottsdale, residents typically file for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. Chapter 7 involves the liquidation of a debtor's non-exempt assets to pay off creditors, while Chapter 13 involves restructuring debt under a repayment plan. The goal is to offer debtors a fresh financial start while ensuring fair treatment to creditors.

Why You May Need a Lawyer

Filing for bankruptcy is a complex legal process that requires a thorough understanding of the law. Here are some common situations where you might need legal assistance:

• Understanding Bankruptcy Options: Deciding whether to file for bankruptcy and determining which chapter to file under is complex and situation-specific.
• Navigating Legal Procedures: Each type of bankruptcy has strict filing rules and schedules, and legal professionals can help navigate these procedures.
• Asset Protection: An attorney can help determine which assets you can keep and which are subject to liquidation.
• Creditor Harassment: An attorney can intervene to stop harassing calls and letters from creditors.
• Completing Paperwork: Filing for bankruptcy involves substantial paperwork that must be filled out accurately and submitted on time.

Local Laws Overview

While the bankruptcy process is governed by federal law, state laws do play a role in certain aspects, such as defining exempt property. In Arizona, and hence for residents of Scottsdale, some important points to consider include:

• Homestead Exemption: Arizona provides a homestead exemption to protect the equity in a primary residence from creditors.
• Personal Property Exemptions: Arizona law specifies certain personal items which are exempt from liquidation, including clothing and household goods up to a specified value.
• Vehicle Exemption: Arizona allows individuals to exempt equity in a vehicle, which can be critical for maintaining transportation during the bankruptcy process.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy involves the liquidation of non-exempt assets to pay off debts, while Chapter 13 allows individuals to keep their property and pay debts over time under a restructured payment plan.

How do I qualify for Chapter 7 bankruptcy in Scottsdale?

Eligibility for Chapter 7 is determined by a means test which checks if your income is below the median state income. If your income is above this threshold, more scrutiny will be applied to your finances to determine eligibility.

What are exempt and non-exempt assets?

Exempt assets are properties that you are allowed to keep when you file for bankruptcy, as defined by state laws. Non-exempt assets are sold off to pay creditors.

Will filing for bankruptcy stop collections and lawsuits from creditors?

Filing for bankruptcy typically triggers an automatic stay, which pauses most collection activities and lawsuits as long as the bankruptcy is active.

How much does it cost to file for bankruptcy in Scottsdale?

The costs involve filing fees set by the bankruptcy courts and, if you choose to hire one, attorney fees – which vary based on the complexity of the case.

How does bankruptcy affect my credit score?

A bankruptcy filing can have a significant negative impact on your credit score, but it also provides an opportunity to rebuild credit over time with responsible financial behavior.

Can I file for bankruptcy without an attorney?

While filing pro se (without an attorney) is possible, it is not recommended due to the complex nature of the process and the risks of errors.

How long does the bankruptcy process take?

A Chapter 7 bankruptcy usually takes three to six months, while a Chapter 13 repayment plan typically lasts between three to five years.

Can all types of debts be eliminated through bankruptcy?

Some debts, like child support, alimony, certain taxes, and student loans, are generally non-dischargeable, meaning they cannot be eliminated through bankruptcy.

How frequently can I file for bankruptcy?

There are time restrictions between filings. For example, you must wait eight years between Chapter 7 filings. Other chapter sequences have different time limits.

Additional Resources

Several resources are available to those seeking assistance with bankruptcy in Scottsdale:

• United States Bankruptcy Court for the District of Arizona: Offers various resources for individuals considering bankruptcy.
• Arizona State Bar Association: Provides a directory of qualified bankruptcy attorneys.
• Consumer Financial Protection Bureau (CFPB): Offers guidance and resources on debt relief options and rights under bankruptcy.

Next Steps

If you are considering filing for bankruptcy in Scottsdale, it's crucial to understand your options and the implications fully. Here are practical steps to take:

1. Evaluate Your Financial Situation: Review all your debts, assets, income, and expenses.
2. Consult with a Bankruptcy Attorney: An initial consultation can provide you with tailored advice relevant to your situation.
3. Research Local Laws: Understand how Arizona's exemptions and local laws might affect your bankruptcy case.
4. Prepare Documentation: Gather all necessary financial documentation, including tax returns, income statements, and lists of assets and liabilities.
5. Consider Credit Counseling: Federal law mandates credit counseling from an approved provider within 180 days before filing.

Bankruptcy can provide a fresh start, but it's essential to proceed with the guidance of a qualified attorney to navigate the legal complexities.