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Chapter 7 Bankruptcy Attorney in Scottsdale

Don’t Let Debt Rule Your Life

Debt can be dangerous. You may be on top of your payments, but if bills start to pile up, it can be easy to lose control. If you’re overwhelmed by your financial situation, you have options. Taking action as soon as possible is the best way to regain power over your life.

Why File for Chapter 7 Bankruptcy?

Filing for the Arizona Chapter 7 bankruptcy is one of your options. While some may believe that filing for bankruptcy is synonymous with failure, that couldn’t be further from the truth. In reality, filing for bankruptcy is the first step toward achieving financial stability.

At Compassionate Counsel, our seasoned Scottsdale Chapter 7 bankruptcy lawyers have the experience necessary to advise you on the bankruptcy process, and we truly care. Our firm name speaks to the level of service we provide to every one of our clients.

Understanding the nuances of Chapter 7 bankruptcy is vital. This type of bankruptcy is often suitable for individuals who do not have a stable income or have accumulated significant unsecured debts such as credit card obligations and medical expenses. Our Scottsdale team assists clients in carefully evaluating their financial situations to determine the best course of action, offering advice tailored to your unique circumstances.

Ready to discuss Chapter 7 bankruptcy? Schedule a free consultation online or dial (623) 294-5705. From our office in Scottsdale, Compassionate Counsel serves Phoenix, Mesa, Tempe, and Chandler.

What Is Arizona Chapter 7 Bankruptcy?

While Chapter 13 bankruptcy requires committing to a repayment plan, Chapter 7 involves a liquidation plan. When you file for Chapter 7, your assets will be gathered, and those that are nonexempt will be sold.

The proceeds will then go towards paying back your creditors. Some property, like your home, will be considered exempt and will not be liquidated. Chapter 7 bankruptcy is an excellent way to eliminate your:

Credit card debt
Medical bills
And more

In addition to discharging unsecured debts, Chapter 7 can provide a legal shield against aggressive creditors. From the moment you file, an automatic stay is put in place that prevents any collection actions such as wage garnishments, lawsuits, and harassing creditor calls. Our experienced Scottsdale team ensures that you understand these protections and how to fully leverage them during your bankruptcy process.

Who Qualifies for Chapter 7 in Arizona?

To qualify for Chapter 7, you must pass a means test. This test compares your average monthly income over six months to the median income of a similar household in Arizona. If your income falls below this median, you are eligible to file for Chapter 7 bankruptcy.

However, passing the means test is only one part of the eligibility process. It’s equally important to consider the types and amounts of assets you own, as some assets may need to be liquidated to settle debts. Our attorneys at Compassionate Counsel delve deeper into these specifics, ensuring you meet all necessary criteria before proceeding, offering guidance on protecting crucial assets during bankruptcy.

State-Specific Considerations in Arizona Bankruptcy

In Arizona, certain state-specific laws and regulations can impact the bankruptcy process significantly. Unlike many other states, Arizona has its own set of exemptions that protect specific property types during a bankruptcy filing. These include exemptions for vehicles, home equity, household goods, and more, ensuring that individuals retain essential assets necessary for a fresh start. Understanding these exemptions can dramatically influence the strategy for filing Chapter 7, particularly for those with significant assets.

Additionally, Arizona requires that individuals filing for Chapter 7 bankruptcy have resided in the state for a minimum of two years to use the state exemptions. This residency requirement ensures that individuals are genuinely rooted in the community. At Compassionate Counsel, we help clients navigate these complexities, offering guidance tailored to Arizona's specific requirements, which is crucial for protecting your interests and making the bankruptcy process as smooth as possible.

Common Misconceptions About Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often misunderstood, leading to hesitancy and anxiety for those considering this financial option. A common misconception is that declaring bankruptcy means you will lose all your assets. Many debtors can protect critical assets through state exemptions, allowing them to retain their homes, primary vehicles, and personal belongings. The goal of Chapter 7 is to offer relief, not to strip individuals of necessities.

Another frequent myth is that bankruptcy will ruin your credit forever. While it's true that bankruptcy will impact your credit score, many find that their credit improves after bankruptcy because of the reduced debt burden and the chance to rebuild credit without the weight of unmanageable obligations. Our team at Compassionate Counsel works to dispel these myths by providing factual information and support, ensuring you're making informed decisions that consider the benefits of a fresh start.

Is Chapter 7 Right for You?

Chapter 7 is typically the right option for those with little to no disposable income and few assets. Our Scottsdale Chapter 7 bankruptcy lawyers are ready and willing to evaluate your financial situation and advise you on the best path forward.

Choosing Chapter 7 can significantly impact your financial future. It’s imperative to weigh the implications of debt discharge against the potential loss of non-exempt assets. We ensure that each client receives a tailored assessment to balance these factors effectively, taking into account future financial goals and personal circumstances. Our consultation process offers personalized insight, helping you determine if Chapter 7 aligns with your long-term financial recovery plan.

Unsure if you qualify for Chapter 7? Schedule a free consultation with a skilled Scottsdale Chapter 7 attorney at Compassionate Counsel by calling (623) 294-5705 or by contacting us online.

General Steps of Filing for Chapter 7 Bankruptcy in Arizona

Evaluate your eligibility: Determine if you meet the eligibility requirements to file bankruptcy Chapter 7 bankruptcy in Arizona. This includes passing the Arizona bankruptcy means test.

Complete a credit counseling course: Complete a course that is from an agency that is approved by the Bankruptcy Court. This aims to ensure that you understand the risks of filing for bankruptcy and may explore alternative options to resolving your debt.
Gather your financial documents: Collect your relevant financial documents, including income records, tax returns, bank statements, property deeds, and a list of your debts and assets. This will help you complete the bankruptcy filing forms.
File your Chapter 7 bankruptcy forms in Arizona: Prepare and file the required forms with the Arizona bankruptcy court. These forms include the petition, schedules, statement of financial affairs, and any other necessary documents. It's crucial to accurately disclose all your financial information to ensure your filing goes smoothly.
Attend the 341 Meeting of Creditors: This meeting allows the bankruptcy trustee and creditors to ask questions about your financial situation. Your presence is required, and your Chapter 7 attorney will guide you through the process.
Complete a debtor education course: This course must be approved by the Bankruptcy Court as well. You will learn about personal financial management and it is a required course for receiving a discharge of your debts.
Receive discharge of your debts: If everything proceeds smoothly and there are no objections from creditors or the trustee, you will receive a discharge order from the court. The discharge eliminates your personal liability for most debts included in the bankruptcy, providing you with a fresh start.

The post-discharge period after your debts have been relieved is crucial for rebuilding your financial status. It’s wise to engage in post-bankruptcy financial planning to prevent the recurrence of overwhelming debt. Our team provides ongoing support through personalized financial advice, helping clients establish practical budgets, manage new credit lines wisely, and craft long-term financial goals. This holistic approach ensures not only legal relief but also a positive and proactive path to lasting financial health.

Compassionate Guidance When You Need It Most

We understand that the thought of filing for bankruptcy may be just as overwhelming as the debt you’re facing. We’re here to show you that, not only is bankruptcy a viable option, but it may even be the best option if you’re trying to achieve financial stability.

With so much on your plate, the last thing you need to worry about is paying outrageous legal fees. At Compassionate Counsel, we offer needs-based pricing to fit your specific circumstances. Our number one priority is providing top-notch guidance at an affordable rate, because we believe everyone deserves access to legal help.

Frequently Asked Questions About Chapter 7 Bankruptcy

How Long Does a Chapter 7 Bankruptcy Stay on My Credit Report?

Chapter 7 bankruptcy can remain on your credit report for up to ten years from the filing date. While this may seem daunting, many individuals find that they can begin rebuilding their credit sooner by promptly addressing their financial habits post-bankruptcy. Managing debts responsibly, securing a secured credit card, and maintaining a consistent payment history can help improve your credit score over time despite the bankruptcy marker. At Compassionate Counsel, we provide guidance on financial recovery, helping you prepare for a healthier financial future.

What Happens to My Car Loan if I File for Chapter 7?

If you're filing for Chapter 7 bankruptcy and have a car loan, you can choose to either reaffirm the loan, redeem the vehicle, or surrender it. Reaffirming means you agree to continue payments, allowing you to keep the car. Redeeming involves paying the lender the car's current value in a lump sum. Surrendering means giving the vehicle back to the lender and having the debt discharged. Each option has its benefits, and it's crucial to carefully consider your financial situation before making a decision. Our attorneys provide tailored advice to help you navigate these options effectively.

Can Chapter 7 Bankruptcy Affect My Employment?

Chapter 7 bankruptcy should not directly impact your current employment. However, some employers might conduct credit checks for positions involving financial responsibilities, and a bankruptcy could potentially influence their hiring decision. It’s essential to be honest and upfront about your financial circumstances if asked. At Compassionate Counsel, we offer guidance on addressing these concerns, ensuring you're prepared to discuss your bankruptcy candidly and constructively with prospective or current employers.

What Types of Debts Are Typically Not Discharged in Chapter 7?

While Chapter 7 bankruptcy can discharge a wide range of unsecured debts, there are certain obligations that typically cannot be eliminated. These include most student loans, child support and alimony payments, certain tax obligations, and debts incurred from fraudulent activities. Understanding which debts will remain is vital for creating a realistic financial plan post-bankruptcy. Our experienced team at Compassionate Counsel offers comprehensive evaluations of your debts to help you plan for life during and after bankruptcy.

How Does Filing for Bankruptcy Affect My Spouse?

If your debts are held individually, your spouse should not be directly impacted by your filing for bankruptcy. However, if you have joint debts, creditors may pursue your spouse for the balance. It might be beneficial for both spouses to file together to fully address joint debts. Our team provides personalized advice tailored to your household's financial situation, ensuring both spouses' interests and obligations are carefully considered during the bankruptcy process.

Thinking About Filing for Chapter 7 Bankruptcy in Arizona? Call (623) 294-5705.

We’ll serve as more than just your attorneys. We’ll be your resource when you have questions, your reassurance when you’re concerned, and your leaders on the path toward a more stable and secure financial future.

Don’t let debt rule your life. Take your power back by talking to our team at Compassionate Counsel about filing for Chapter 7 bankruptcy. If it isn’t right for you, we also provide Chapter 13 services, as well as debt settlement and negotiation. If you are located in Scottsdale, Phoenix, Tempe, Mesa, or Chandler, schedule a free consultation.

Debt can negatively impact every aspect of your life. When you start to lose control and bills begin to pile up, take action. Speak with a qualified Scottsdale Chapter 7 lawyer as soon as possible.

Contact our team of attorneys at Compassionate Counsel in Scottsdale to discuss the process of filing for Chapter 7 bankruptcy. A liquidation plan may help you get back on your feet.

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Just like our tailor-made strategies, our prices are flexible to fit your unique needs. We don’t believe in a one-size-fits-all approach to fees.
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We take the time to truly get to know our clients because we care about you. We’ll treat you like an individual, not just another case number.

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Client Reviews

At Compassionate Counsel, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

"I am so glad I chose them to help me through it"
Both Kris and Brant were wonderful to work with! They made the process so easy and less intimidating. Both were always so quick to reach out when I had any questions and always helped alleviate any concerns I had. I appreciate so much that I was never left wondering what was going on with my case, and loved how easy they were to talk to - I never felt overwhelmed with legal terms! They are genuinely compassionate in what is a very stressful time and I am so glad I chose them to help me through it. 100% recommend!

- Rachel M.
"They made me feel confident in their work during the whole process"
If this was a service you go to repeatedly I definitely would! I started with a different attorney who I had zero confidence in and thankfully got a referral for Compassionate Counsel because it was like night and day. They are thorough, knowledgeable, and friendly. They did not seem annoyed when I asked questions and very attentive when I reached out. They made me feel confident in their work during the whole process. Highly recommend!!

- K G.
"Do yourself a favor and call Compassionate Counsel today"
Compassionate Counsel may sound too good to be true, but it's not. My call with Brant was quick and reassuring. He addressed my concerns with kindness and expertise. Do yourself a favor and call Compassionate Counsel today. You'll be writing a review like mine in no time! - Tim in Phoenix

- Tim S.
"I definitely recommend Compassionate Counsel"
I've always thought that lawyers would be hard to work with, but Kris made it easy for me to understand every step of the process. He was available by e-mail or phone even when he was out on vacation. Being stressed out of not knowing what to do when you've gotten yourself in this situation of too much debt comes with the territory, but Kris understood me and my situation and assured me things will run smoothly. As long as you have all your paperwork, cross your Ts and dot your Is, then things will fall into place. I definitely recommend Compassionate Counsel and speak with Kristopher Childers or Brant Hodyno. They absolutely are compassionate. Their company name says it all!

- R.M.
"A genuinely good person is hard to find these days. So thank you Brant for your kindness."
I spoke with Brant. We discussed my options and I was completely surprised. He gave me options that 8 other attorney's "forgot" to mention. My concerns were acknowledged and were quickly resolved by those options. I didn't feel pressured or nervous speaking to him. Brant is the most down to earth, great person I've spoken to in a long time. He's honest and straight forward. No surprise endings here. I now know what I can do to protect myself from creditors and I won't be hurt in the process. In situations like this you need someone who understands your position and not just in it for the money. A genuinely good person is hard to find these days. So thank you Brant for your kindness.

- D. H.
"Brant provided more helpful information in an on-the-spot free consultation than I received in weeks"
This place really lives out the name - Compassionate Counsel. Brant provided more helpful information in an on-the-spot free consultation than I received in weeks of going back and forth with another law firm. Talking to Compassionate Counsel felt less like talking to a law firm and more like talking to a genuine person who cares. Highly recommend!

- Lina B.
"What a rarity it is to find an attorney who "walks the walk." Compassionate Counsel is truly what this firm provides"
I spoke with Brant a couple times on the phone regarding my son's financial hardships and both times I hung up feeling that I had received accurate, understanding, and caring advice. Both phone calls were received quickly after my reaching out to him too. What a rarity it is to find an attorney who "walks the walk." Compassionate Counsel is truly what this firm provides. I recommend them with 100% assurance that you will be blown away by the caring and knowledgeable service you will receive.

- Lisa Dee S.
"He's a really cool human being and I'm glad that there are lawyers out there like him!"
Looking into this kind of thing is really stressful and confusing but Brant totally took that all away. He took time out of his day to answer my questions, give me some tools and was super transparent about the process. He's a really cool human being and I'm glad that there are lawyers out there like him! Thanks again!

- Anatta V.

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