Chapter 7 Bankruptcy Explained

Information Provided by Phoenix Bankruptcy Attorney Cliff Levenson

Phoenix bankruptcy attorney helps both individuals and married couples file Chapter 7 bankruptcy to obtain debt relief through Arizona bankruptcy courts.Phoenix bankruptcy attorney Cliff Levenson helps both individuals and married couples file Chapter 7 bankruptcy to obtain debt relief through Arizona bankruptcy courts. Bankruptcy can be very beneficial to anyone struggling under a heavy burden of debt. If you have insufficient income to make any meaningful dent in your debt while still managing your necessary expenses, you might qualify for Chapter 7.

Benefits of Chapter 7 Bankruptcy

Chapter 7 has two main functions for consumers, both of which provide multiple benefits:

  • The Automatic Stay. A Chapter 7 bankruptcy filing creates an automatic stay against any and all collection activity. This means that:
    • No creditor can call you, send you letters, sue you or garnish your wages or bank account.
    • Your mortgage lender must stop any foreclosure proceedings pending, and your car lender cannot repossess your car.
    • You will then have breathing room to decide what you want to do with your house and car or to find new housing or new transportation.
  • The Chapter 7 Discharge. Chapter 7 wipes out your legal obligation to repay many debts. This means that:
    • Once you receive your Chapter 7 discharge, you will no longer be responsible for any of the dischargeable debts that you had at the time of your bankruptcy filing. Dischargeable debts include credit card debt, personal loans, some utilities, medical bills and even some income taxes. You can even discharge student loans if you can show extreme hardship.
    • Your credit report will show a bankruptcy discharge, which will show prospective lenders that you have no other debt burden. This then allows you to start over and begin rebuilding your credit.
    • With your debts discharged, your regular income will be free to pay for your necessary expenses, such as food, gas and transportation.

Qualifying for Chapter 7 Bankruptcy in Arizona

To find out if you qualify for Chapter 7, contact Phoenix bankruptcy lawyer Cliff Levenson now. Cliff can review your property and your finances to help you determine if you:

  • Qualify under the bankruptcy means test
  • Qualify based on previous bankruptcies
  • Can qualify based on your income and expenses
  • Should file Chapter 7, based on the value of your property and the amount of your debt

Should I File Bankruptcy?

If you have a lot of debt and not a lot of income, Chapter 7 bankruptcy could be the solution you need. Please contact Phoenix bankruptcy attorney Cliff Levenson now to discuss your options.