Bankruptcy is not necessarily the right choice for everyone. If you have one or two major unsecured debts and a substantial lump sum to negotiate with, you may be able to “settle” your debts for less than what you actually owe. Creditors will generally only entertain debt negotiation if they are convinced you are otherwise unable to pay the full amount. After all, receiving some payment is better than receiving no payment. We can help you negotiate a debt settlement and help you understand the potential tax implications of any forgiven debt.

Chapter 7 bankruptcy can be an effective choice to discharge qualifying debts if you have little or no means to repay creditors. To qualify, you must pass the Arizona Means Test, which tests whether you currently have “means” to settle outstanding obligations. You will likely be eligible to file if you have a low income or if you have very little disposable income. Completing a Chapter 7 bankruptcy involves going through a liquidation process. The bankruptcy Trustee assigned to your case will sell non-exempt property to partially compensate your creditors. You can exempt many types of property, including equity in your home and vehicle. After liquidating all non-exempt assets, you will typically be permitted to discharge remaining unsecured debts, including credit card debt and medical bills. Our team can guide you through the Chapter 7 process and work to minimize what property is sold in liquidation.

Filing for Chapter 13 bankruptcy can help you stop foreclosure and address and eliminate many types of debt. The process involves submitting and confirming a payment plan that addresses all of your outstanding obligations and reorganizes them into a single monthly payment. The plan will last between 3 and 5 years, and the monthly payment amount will be tied to your current ability to pay, not the total amount that you owe. Certain types of debt, including tax debt, receive a higher “priority” than other types of debt. This means that Chapter 13 bankruptcy can be used to catch up on debt you cannot discharge, including missed mortgage payments. After completing your payment plan, you will generally be allowed to discharge any remaining unsecured debts. We can help you create a payment plan that maximizes relief while still meeting all legal requirements.

Businesses potentially have the option of filing for bankruptcy under Chapter 7 or Chapter 11 of the Bankruptcy Code. You should only consider filing for Chapter 7 if an endeavor has run its course and you wish to liquidate all business assets. Filing for Chapter 11 bankruptcy can allow you to remain in control of the business and continue its operations throughout a reorganization process. You will need to submit and confirm a Chapter 11 debt reorganization plan that sufficiently addresses all of the business’s outstanding obligations. While business entities cannot file for Chapter 13 bankruptcy, individuals running sole proprietorships can potentially secure relief for business-related debts. Individuals that own business entities may also be able to eliminate their personal responsibility for paying business-related debts. Our team can help you explore all of your debt relief options.

If you fall behind on your car payments, your lender may threaten to repossess – or take away – your vehicle. Bankruptcy’s automatic stay can freeze repossession efforts. Filing for Chapter 7 bankruptcy is typically not the most effective means of protecting your vehicle in the long term, but it can give you time to negotiate a compromise with your lender that avoids repossession. By filing for Chapter 13 bankruptcy, you force your lender to allow you to repay arrears on your vehicle loan over a period of up to 5 years. You may even qualify for a “cramdown” that reduces what you owe. We can assist you with avoiding repossession.

Filing for bankruptcy can stop an imminent foreclosure and help you keep your home so long as you submit your petition before the date of the sale. Chapter 13 bankruptcy can give you the time and flexibility to reorganize your finances and catch up on missed payments. Our team can help implement many foreclosure avoidance strategies and will do everything possible to save your home. We can also connect you with an experienced real estate attorney if you wish to sell your home as a means of preventing foreclosure.

Creditors can garnish your wages after obtaining a collection judgment against you. This means that they can repeatedly take a portion of your regular paycheck to satisfy a debt. We can help you stop and prevent wage garnishments by filing for bankruptcy.

Contrary to popular belief, income tax debt that meets certain conditions can be discharged in a Chapter 7 or Chapter 13 bankruptcy. Tax debt that cannot be discharged can be addressed through a Chapter 13 plan, which typically allows you to repay tax debt over a period of 3 to 5 years. We can determine if any of your tax debt is dischargeable and guide you through the Chapter 13 filing process.

Creditors can also levy your bank accounts once they have a collection judgment against you. This involves draining a majority of your bank account – sometimes repeatedly – until a debt is satisfied. Our team can stop imminent or ongoing bank levies through bankruptcy.