Chapter 7 bankruptcy in Arizona is a court-supervised procedure that allows for the complete liquidation of all of the debtor’s non-exempt assets in a relatively short period of time. Using the services of a court appointed bankruptcy trustee, non-exempt property is converted to cash so it can be repaid to your creditors. The process also bars creditors from taking any and all action to collect debt from a qualified debtor who has obtained a discharge thru an “automatic stay”. For the duration of the bankruptcy, creditors cannot contact you by phone, send collection letters, file a lawsuit, pursue a lawsuit in progress, repossess property, garnish wages, attach bank accounts, evict tenants, or foreclose on real property. The automatic stay lasts for the duration of the bankruptcy unless the creditor has a basis for asking the court to lift the stay, and then files a motion that is granted by the Court. When the debtor is discharged at the end of the case, the automatic stay becomes, in effect, permanent.
Chapter 7 bankruptcy is not uncommon in today’s economy. While the process is typically relatively quick, there are certain criteria that must be met to be eligible to file.
To learn more about whether or not you qualify for Chapter 7 bankruptcy, contact attorney Joel E. Sannes today at 480-461-5304.