The Scottsdale bankruptcy attorneys of Ariano & Associates, PLLC understand that you will have a number of questions about Chapter 7 bankruptcy and what will happen after the bankruptcy process is over. The Frequently Asked Questions (FAQs) listed below are common questions and concerns that most Arizona residents have when considering Chapter 7 bankruptcy. You are bound to have more questions, but we hope that the information provided below will help you get a better idea of what Chapter 7 bankruptcy is all about and whether or not pursuing this form of bankruptcy is the best way to eliminate your debt.
How long does Chapter 7 bankruptcy take?
The entire Chapter 7 bankruptcy process can take anywhere from a few months to six months or a little longer to be completely resolved. The amount of time your Chapter 7 bankruptcy takes is all dependent upon your particular financial situation, as no two people have the exact same set of facts and circumstances. The relatively short period of time it takes to go through the Chapter 7 bankruptcy and discharge your debt makes this form of bankruptcy very popular for many Arizona residents.
Who qualifies for Chapter 7 bankruptcy?
Not every person will qualify for Chapter 7 bankruptcy because certain requirements must be met. New rules have made it a little more difficult for individuals to qualify for Chapter 7 bankruptcy. In determining if you qualify for Chapter 7 bankruptcy, your income will be analyzed using a means test to determine if you have enough money to repay your debt. Further, you may not qualify for Chapter 7 bankruptcy if you have discharged your debt through Chapter 7 bankruptcy in the past eight years. There are additional reasons why you may not qualify, so you should discuss any additional questions you have with one of the bankruptcy attorneys of Ariano & Associates, PLLC. If you do not qualify for Chapter 7 bankruptcy, you will have to choose another means of eliminating your debt, such as Chapter 13 bankruptcy.
Will all of my debts be eliminated?
The ultimate goal of Chapter 7 bankruptcy is to eliminate all unsecured debts, which are debts that you have that are not attached to any property, such as a home or automobile. Examples of unsecured debts include credit cards, personal loans, and medical bills. Unsecured debt that may not be discharged through Chapter 7 bankruptcy include unpaid child or spousal support, student loans, debts incurred due to your fraudulent conduct, and some tax debts, among others.
Can I keep my home during the bankruptcy process?
After filing for Chapter 7 bankruptcy, you can keep your home if your home is considered an exempt asset. You are allowed to keep some property during the bankruptcy process, and a home is one of the most, if not the most, important pieces of property an individual can own. Therefore, your home cannot be sold in order to pay off your debt so long as it is considered exempt property.
Will my credit be destroyed if I file for bankruptcy?
While your credit score may go down if you file for Chapter 7 bankruptcy, after you have completed the bankruptcy process and discharged some or all of your debt, you will be able to start fresh and rebuild your credit. Tackling your debt head on will ultimately help your credit score increase after you have completed bankruptcy.
Contact the Scottsdale Bankruptcy Attorneys of Ariano & Associates, PLLC Today
Filing for Chapter 7 bankruptcy is a big step to take and you undoubtedly will have a number of questions that you would like answered by a qualified Arizona bankruptcy attorney. At Ariano & Associates, PLLC, our seasoned Scottsdale consumer bankruptcy attorneys have all of the answers you need to make an informed decision as to whether or not Chapter 7 bankruptcy is right for you. If you are considering Chapter 7 bankruptcy as a means to discharge your debt, it is important that you speak with one of our highly skilled bankruptcy attorneys right away. We can guide you through the process, handling all of the work for you. Contact Ariano & Associates, PLLC today to speak with one of our bankruptcy attorneys. We are available 24/7 to answer your questions and address your concerns.