The word Phoenix “Bankruptcy” signifies more than just Red Ink. For people living in Phoenix who have unexpected changes in employment, medical expenses that exceed insurance benefits or who have may have simply erred in judgment, “Bankruptcy” means a Fresh Start.”
Phoenix Chapter 7 Bankruptcy is a form of relief made available by the Federal government. It enables people who are insolvent or unable to pay their bills to file a Petition with the United States Bankruptcy Court to obtain a “stay” against the claims of their creditors.
An Phoenix Chapter 7 bankruptcy proceeding is commenced by filing an Phoenix Bankruptcy Petition with the Bankruptcy division of the United States District Court in the state of Phoenix. The Bankruptcy Petition is a collection of papers prepared on the basis of information which you provide. In particular, such Petition contains the names and addresses of all of your creditors, a listing of all property owned by you at the time of filing and the answers to some other questions required by law. There is a Bankruptcy Court in Phoenix, Arizona and if you reside in Maricopa County, Phoenix, that is where you would file your Bankruptcy Petition. In order to file such petition, you must have lived in the State of Phoenix for a greater portion of the 180 days immediately preceding your filing. As a further condition of filing your Chapter 7 petition, you must not have filed a previous Chapter 7 and received a discharge within the immediately preceding eight years.
You come under the protection of the Bankruptcy Act immediately upon the filing of your petition. The Bankruptcy Court will mail a notice to all of your creditors which, among other things, advises them of the issuance of an “Automatic Stay Order” which stops lawsuits, garnishments, foreclosures, repossessions and harassing calls and letters. After the expiration of 120 days after filing, the Automatic Stay Order becomes an order of final discharge which means that you are completely and forever discharged of your debts. There are, however, certain debts which are excepted from the discharge and for which you may remain liable even after discharge. These non-dischargeable debts could include the following:
- Priority tax claims;
- Federally insured student loans;
- Debts incurred as a result of fraud, i.e., you lied to someone or gave a false financial statement to obtain credit or borrow money;
- You have deliberately injured someone;
- You have taken property which is subject to a lien or security interest and sold or disposed of such property contrary to the interests of the secured party and did not pay off the secured loan;
- You have been involved in an automobile accident resulting in injuries to another and you were found guilty of a DUI;
- Debts incurred within a short period of time prior to your filing;
- Debts which are not listed in your petition;
- Debts which you became obligated to pay as a result of a marital settlement.
If you think that you fall in any of the above categories, it is important that you bring the potentially non-dischargeable debts to the attention of a bankruptcy attorney and get their advice.
