FAQs

Frequently Asked Bankruptcy Questions

Question:  Can I get medical care if I file for bankruptcy?

FAQ Answer:  There is no guarantee that if you file bankruptcy on your doctor, you won’t get dropped by the medical provider. If you and your attorney have determined the best course of action for your financial and debt-relief needs is bankruptcy, you have no choice but to list medical debt on the petition. Clients faced with this dilemma discussed the situation  with their doctor. Many times, the doctor’s office will arrange a payment plan so that even if the debt gets discharged in a bankruptcy, the bill can be paid. 

Chapter 7 cases: A Chapter 7 bankruptcy eliminates unsecured debt, and medical bills are unsecured debt. Any and all unsecured debt and creditors  must be documented on the bankruptcy papers. 

Question:  How long will it take before I get a discharge of my Phoenix bankruptcy case?

FAQ Answer:  Keep in mind, there is no guarantee of a discharge when you file your bankruptcy case in Phoenix.  However, here are the average time for bankruptcy discharges in Phoenix:
Chapter 7 bankruptcy cases:  The average discharge time is 5 to 6 months after filing.

Chapter 13 bankruptcy cases:  Are set up by the bankruptcy court trustee to run for 36 to 60 months; once all payments are made and provisions of the Chapter 13 plan have been fulfilled, the chapter 13 bankruptcy will be discharged.

Chapter 11 and Chapter 12 bankruptcy cases:  Chapter 11 and 12 bankruptcies are on a case by case basis.  Usually they are structured by the bankruptcy trustee to be shorter than Chapter 13 case, however, it will depend on the individual circumstances of the case.

Question:  Do I have to go to court in order to file for bankruptcy?

FAQ Answer:  Yes, the Arizona bankruptcy law requires that you attend a Section 341 (Meeting of Creditors).  A 341 Hearing in Phoenix, Arizona is conducted by the bankruptcy trustee assigned to your case.  If filing a bankruptcy in Maricopa County, your 341 hearing will be held at:
Phoenix Division U.S. Courthouse and Federal Building

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: If my paycheck is garnished, Can I get any of that money back?

FAQ Answer:

Would Filing Chapter 13 Bankruptcy Help?
Filing bankruptcy will stop any wage garnishment that is already in place.  However, monies previously taken from you are probably gone.  Any funds that have been taken from you in a garnishment will not be returned.  These aforementioned funds may be claimed by the bankruptcy trustee and distributed to your creditors to pay the debt of your bankruptcy estate.
 
The bankruptcy trustee will be able to take back up to 90 days of funds paid to a garnishment once you declare for bankruptcy protection.  The trustee is able to determine that your garnished money is a preferential payment to a creditor and will order the last 90 days of garnished funds to be turned over.  This will really not affect you but will not make the creditor who has been garnishing you very happy at all.
 
However, sometimes mistakenly, a garnishment will continue to be taken out of your paycheck after the filing of your bankruptcy petition.  An experienced bankruptcy attorney in Phoenix can assist you to assure that no more of your hard earned wages are taken in a garnishment.  A Phoenix bankruptcy attorney is the knowledgeable debt relief expert you want on your side.
 
When you File Bankruptcy Is Important!
 
When you file for bankruptcy directly affects if your next paycheck can be garnished,  It is important to realize that your bankruptcy filing date must be before the end of your pay period, not just before your actual pay date. If your pay period ends before the date of your bankruptcy filing, chances are, those funds will also be lost.
 
Sound confusing?  Garnishments can be very tough to navigate if you are attempting to do-it-yourself.  It is recommended, hire a bankruptcy lawyer.  It can help make the process of stopping a garnishment run much more smoothly as your attorney notifies both your payroll department at your job and the creditor who is garnishing your wages.  Our experienced Phoenix bankruptcy attorneys assure that you keep as much as your earned monies as possible.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: What is the Automatic Stay in Bankruptcy and How Does it Work?

FAQ Answer:

When a consumer files for bankruptcy protection all collection efforts, law suits, and garnishments are halted. These collection efforts are halted because of “The Automatic Stay”.   An Automatic Stay is used in both chapter 13 and chapter 7 bankruptcies.  It is one of the most powerful tools offered to you when declaring bankruptcy.
 
automatic stay infographicWhat exactly is The Automatic Stay?  The Automatic Stay is just that, a stay. While a stay is not permanent the stay can provide temporary relief from most collection efforts. The stay goes into effect the moment that a bankruptcy case is filed.  The automatic stay remains in place until the bankruptcy is either discharged, dismissed, or the creditor files and is successfully granted a motion to lift the stay. The stay is awarded in both Chapter 7 and Chapter 13 bankruptcy filings.
 
When a bankruptcy case is filed, a list of creditors is required to also be filed with the bankruptcy. The bankruptcy court will then send out notice to each creditor listed on the bankruptcy petition to notify the creditor of the stay.  An experienced bankruptcy attorney can assist you with this and all other paperwork regarding a bankruptcy filing.
 
Automatic Stay and Emergency Bankruptcy Filings
 
When immediate action is needed, such as to stay a foreclosure, repossession, or wage garnishment, it may be in the debtor’s best interest to call the creditor and provide their case number or fax over a notice of filing.

The Automatic Stay will stop most actions, but not all. Certain things like child support, criminal restitution, divorce proceedings, taxes, and some evictions cannot be stalled by the Automatic Stay. It is important to speak with a lawyer to determine if the Automatic Stay will help your particular situation.

If you are behind on your car payments or mortgage payments and file a Chapter 7 bankruptcy, the creditor will usually petition the court to remove the stay so that they may proceed with a garnishment or foreclosure. You will typically have a 20 day period to respond. If you are wanting to keep the property you are behind on than a Chapter 13 may be a better option and your attorney can advise you as to which chapter would best benefit you.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: Can I stop creditors from bothering me if I file bankruptcy?

FAQ Answer:

Once you have hired a Phoenix bankruptcy attorney, you may notify any creditor that contacts you that you have retained counsel. Our firm will give you a phone number to give to your creditors and we will start taking your creditor calls; ending the nightmare of being hounded by creditors.  The only thing you have to give your creditors is your Phoenix bankruptcy attorney’s name and phone number and they will have to call our Phoenix bankruptcy office with any further questions.
 
Once creditors have been instructed that you have hired an experienced Phoenix bankruptcy lawyer, they will no longer contact you.  An Automatic Stay goes into place once we have filed your Phoenix bankruptcy.  An automatic stay imposed by the court ensures creditors from contacting you.  Creditors contacting you after they have been informed of your bankruptcy will be in violation of the automatic stay and can face consequences.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: Will I be able to get a credit card after declaring bankruptcy in Phoenix?

FAQ Answer:

Absolutely. Many credit card companies are willing to work with people who recently filed bankruptcy.  Many times these are higher interest cards with lower credit limits.  However, these are options that you will have when seeking to get a credit card after filing bankruptcy in Phoenix.
The credit card companies will start sending you credit card offers soon after filing your Phoenix bankruptcy case. Call our experienced Phoenix bankruptcy attorney with additional questions regarding getting a credit card after declaring bankruptcy in Phoenix.  Free Consultations, call (480) 263-1699.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: Can my car be repossessed if I am behind on payments?

FAQ Answer:

Yes. Typically once you are 90 days past due your loan will be put into repossession status. Filing a Chapter 7 bankruptcy in Phoenix will delay a repossession and a Phoenix Chapter 13 bankruptcy filing can stop a repossession altogether and allow you to catch up on your missed payments.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: Are Pay day loans dischargeable in a Chapter 7 bankruptcy filing?

FAQ Answer:

Yes, pay day loans in Arizona are considered unsecured debt and may be discharged in a Chapter 7 bankruptcy. Typically pay day loans do not report to the three credit bureaus so you will need to be sure to list the creditor on your bankruptcy petition.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: How much of my paycheck can be garnished?

FAQ Answer:

In Arizona, a creditor may get a garnishment of up to 25% of your disposable income from each pay check. Filing a Chapter 7 bankruptcy in Arizona will stop any further garnishments.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: How much notice do I have to be given before my house can be foreclosed on in Arizona?

FAQ Answer:

In Arizona, you have to be given 91 day notice from the recording date of the sale notice.  As long as you file a bankruptcy prior to the sale date the foreclosure will be postponed. A Phoenix Chapter 13 filing may be able to help you save your house while a Chapter 7 will just delay the sale.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Question: Can I get my car back after it has been repossessed?

FAQ Answer:

If you file a Chapter 13 bankruptcy within 10 days of your car being taken you will be able to get the car back. You may have to pay the impound fees.

Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003

Phone:
General:
602-682-4000 or 800-556-9230

Click for more information about Phoenix Bankruptcy Court.

At your Phoenix 341 Hearing, the Arizona bankruptcy trustee will ask you questions about your petition, assets, and liabilities.  In most cases, this court appearance is the only one required, and you will not even see the judge assigned to your case.  In addition, your Phoenix bankruptcy lawyer, will attend your 341 Hearing with you to protect your interests.  Our Phoenix bankruptcy lawyers will be there for you every step of the way throughout your bankruptcy filing.

Our Phoenix Bankruptcy Attorneys and Bankruptcy Lawyers in Phoenix will answer all of your questions regarding bankruptcy, debt relief, and discharge of your debts!  Get your FAQ answers here.

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    Neighborhood Areas in Phoenix That We serve:

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    And the surrounding areas of the Phoenix Metro

    DISCLAIMER:  The information you obtain at this Arizona Bankruptcy Law web site and on this FAQ page is not, nor is it intended to be, legal advice.  You should consult a Phoenix lawyer for advice regarding your individual situation.  Also, our Arizona Bankruptcy lawyers and staff invite you to contact our Arizona Bankruptcy Law Firm and welcome your calls, letters, and electronic mail.  Contacting us does not create an attorney-client relationship.  Please do not send any confidential information to us until such time as an attorney-client relationship has been established.  Thank you for visiting our Phoenix debt relief web site.

    Serving clients throughout Arizona, including the communities of: Anthem, Apache Junction, Avondale, Buckeye, Casa Grande, Cave Creek, Chandler, Dateland, Fennemore, Flagstaff, Fountain Hills, Gila Bend, Gilbert, Glendale, Holbrook, Kingman, Lake Havasu City, Marana, Mesa, Nogales, Peoria, Phoenix, Phoenix Metro, Queen Creek, Sacaton, Santan, Scottsdale, Sedona, Seligman, South Santan, Sun City, Sun City West, Sun Lakes, Surprise, Sweetwater, Tempe, Waddell, Williams, Winslow, Youngtown, plus, areas in the vicinity of Luke Air Force Base, Phoenix Sky Harbor International Airport, Mesa Gateway Airport, and other communities in Maricopa County.