Chapter 7 Bankruptcy for Consumers
Arizona Chapter 7 Bankruptcy for Consumers
A consumer Chapter 7 bankruptcy is the easiest, fastest, and least expensive way to get rid of overwhelming debt. It can eliminate most, but not all unsecured debt.
What is an “unsecured debt?” An unsecured debt is one that does not attach to tangible property. But what is “tangible property?” It is property you can touch, such as a house or a car. Debts that attach to tangible property are called secured debts. Now you might wonder what is “secured debt?” Examples of secured debts are mortgages and car loans. Examples of unsecured debts are credit card debts, medical bills, and student loans.
Unsecured debts that a chapter 7 will not eliminate are called priority unsecured debts. These include domestic support obligations, such as child support as well as most unpaid taxes. There is a complicated procedure for eliminating tax debt. If you have unpaid taxes or are paying child support, please let us know.
Student loans fall into a category of their own. They are unsecured debts, but they are not priority unsecured debts. More importantly, if they are federal government loans, they are not dis-chargeable in any bankruptcy chapter.
If you have mostly unsecured debts or you are buying a house or a car and are NOT behind in your payments, a Chapter 7 bankruptcy is a good solution for unmanageable debt. However, if you are behind on your mortgage or car payments, a Chapter 7 will NOT save your home or your car from foreclosure or repossession. If you are behind in your mortgage or car payments and you want to keep your house or your car, a Chapter 13 bankruptcy offers protection and the ability to catch up on missed payments.
Start Your Chapter 7 Consumer Bankruptcy Case Today
During our initial consultation, we will help you review your financial situation, assess your options and choose the best course of action for you and your family. To learn more, contact us via Email or by phone at 602-275-3238 to arrange a consultation.to schedule an appointment.
Need Legal Help?
If you need legal assistance with matters related to Immigration and/or Bankruptcy,
contact us today to schedule a consultation.