FAQ

Arizona Chapter 7 and Chapter 13 Bankruptcy Attorneys

What is bankruptcy?

Bankruptcy is legally defined as the impairment or the financial inability of people to repay debt that they owe to their creditors.  When people successfully file for bankruptcy, their debts are discharged, but with some ramifications.  In Arizona, the two most common types of bankruptcy are Chapter 7 and Chapter 13.

What is secured debt?

Secured debt is a type of debt that is tied an item of property such as a vehicle or a home.  When a person is on the verge of bankruptcy, creditors may try to repossess his/her car or foreclose on his/her home to settle the person’s outstanding debt.

What is unsecured debt?

Unsecured debt is a type of debt that is not tied to an item of property.  Credit card debt and student loan debt are examples of unsecured debt.  When a person has fallen behind on payments toward their unsecured debt, creditors may initiate legal proceedings to collect payment.

Am I allowed to file for bankruptcy?

In order to determine your eligibility, it is advised that you meet with a qualified bankruptcy attorney, like the Phoenix bankruptcy lawyers at Bankruptcy Helpers as not all people are eligible for bankruptcy.  

How long will the bankruptcy process take?

On average, the bankruptcy process takes 4-6 months if a person is filing for Chapter 7.  If a person is filing for Chapter 13, it will take 3 – 5 years.  The amount of time will vary person to person and will depend upon how long it takes the person to gather information related to his/her debt and income.

How long will a bankruptcy appear on my credit report?

A bankruptcy will appear on your credit report for 7 – 10 years.  The length of time will depend upon the type of bankruptcy you have filed for.

The Phoenix Bankruptcy Law Firm assists individuals who are looking to file for bankruptcy in Phoenix and surrounding areas in Arizona such as Tuscon, Mesa, Glendale, Tempe and Prescott.