Bankruptcy Law – Chapter 7 Bankruptcy

Arizona Chapter 7 Bankruptcy for Consumers

A consumer Chapter 7 bankruptcy is the easiest, fastest, and cheapest way to get rid of unmanageable debt. It will eliminate most, but not all, unsecured debt.

An unsecured debt is one that does not attach to tangible property. Tangible property is property you can touch, such as a house or a car. Debts that attach to tangible property are called secured debts. 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, and 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.

Related: Are Taxes Dischargeable in Bankruptcy?

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 chapter.

Related: Managing Student Loans or Discharging Them in Bankruptcy

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 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 offers protection and the ability to catch up on missed payments.

Click here to see how Chapter 13 Bankruptcy works

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.