Mesa Bankruptcy Lawyers

Feeling the weight of overwhelming debt can be one of the most stressful experiences in life. The constant phone calls, the threatening letters, the sleepless nights spent worrying about your family, your business, or your future—it can feel like you’re trapped with no way out. We want you to know you are not alone, and there is a path forward.

The Mesa bankruptcy lawyers at Udall Shumway understand that financial hardship can happen to anyone. An unexpected medical emergency, a job loss, a divorce, or an economic downturn can destabilize even the most carefully laid plans. For over 50 years, our firm has been a pillar of the Mesa community, helping individuals, families, and businesses navigate these difficult times with dignity, compassion, and strategic legal guidance.

Bankruptcy isn’t a sign of failure; it is a legal tool designed by federal law to provide honest but unfortunate debtors with a fresh start. It’s a chance to press reset, restructure your finances, and build a more secure future. Our role is to be your trusted guide through this complex process, demystifying the law, protecting your rights, and finding the solution that is truly right for your unique situation. If you’re ready to stop the endless cycle of worry and take the first step toward financial freedom, our team is here to help.

Why Choose Udall Shumway for Bankruptcy Counsel in Mesa?

When you are facing a decision as significant as bankruptcy, the legal partner you choose is critical. Since 1965, Udall Shumway has been a pillar of the Mesa community, offering a rare blend of historic stability and modern legal strategy. Our deep experience is unique; we represent both debtors and creditors, giving us a 360-degree understanding of the financial landscape and providing you with a distinct strategic advantage.

We guide individuals and businesses through every available option, from Chapter 7 and 13 to complex Chapter 11 and the innovative Subchapter V for small businesses—a law we helped pioneer in Arizona. Above all, we believe in a compassionate, human-centered approach. We know this is more than just a legal case—it’s your life. We provide clear, non-judgmental counsel to demystify the process and lift the burden from your shoulders.

Our firm is dedicated to providing the insightful guidance you need to find your path to a fresh start.

Understanding Your Bankruptcy Options in Arizona

The word “bankruptcy” can sound intimidating, but it’s simply a name for a set of legal processes. Each process, or “Chapter,” is designed for a different situation. The first step toward relief is understanding which path might be right for you. Our experienced bankruptcy attorneys will conduct a thorough analysis of your finances to recommend the best course of action, which may include one of the options below.

Chapter 7 Bankruptcy: The “Fresh Start”

Often called a “liquidation” or “straight” bankruptcy, Chapter 7 is the most common form of bankruptcy for individuals. It is designed to provide a relatively quick and complete release from most of your unsecured debts.

Who is Chapter 7 for?
Chapter 7 is generally a good fit for individuals or couples who have significant unsecured debt (like credit card bills, medical expenses, and personal loans) and have limited income and assets.

To qualify, you must pass what is known as the “means test,” which compares your income to the median income in Arizona for a household of your size. If your income is below the median, you typically qualify. If it’s higher, a more detailed calculation is done to see if you have enough disposable income to repay a portion of your debts.

How does Chapter 7 work?

The Automatic Stay: The moment you file your Chapter 7 petition, an “automatic stay” goes into effect. This is a powerful court order that immediately stops most creditors in their tracks. It halts collection calls, wage garnishments, repossessions, and lawsuits against you, providing instant relief and breathing room.
The Trustee and Exemptions: A court-appointed trustee is assigned to your case. Their job is to review your assets to see if there is anything that can be sold to pay your creditors. However, Arizona law provides generous “exemptions” that protect most of your essential property. This can include a certain amount of equity in your home (the homestead exemption), your car, retirement accounts, household goods, and tools of your trade. For the vast majority of people filing Chapter 7, all of their property is exempt, and they get to keep everything.
The Discharge: After you complete a credit counseling course and attend a brief meeting with the trustee (called the 341 meeting of creditors), you will typically receive a “discharge” from the court within a few months. The discharge is a court order that permanently eliminates your legal obligation to pay back your discharged debts.

Benefits of Chapter 7:

Provides the fastest path to being debt-free.
Wipes out most unsecured debts completely.
Allows you to keep your essential, exempt property.
Stops creditor harassment immediately.

Chapter 13 Bankruptcy: A Structured Reorganization

If you have a steady income but have fallen behind on critical payments, or if you don’t qualify for Chapter 7, Chapter 13 offers a powerful alternative. It is not a liquidation; instead, it’s a reorganization that allows you to catch up on debts over time while keeping your valuable assets.

Who is Chapter 13 for?
Chapter 13 is often the best choice for individuals who:

Are facing foreclosure and want to save their home.
Are behind on car payments and want to avoid repossession.
Have valuable, non-exempt assets they wish to protect.
Have a regular income and can afford to pay a portion of their debts over time.
Have certain debts that cannot be discharged in Chapter 7, such as some tax obligations.

How does Chapter 13 work?
Instead of liquidating assets, you and your attorney will create a repayment plan that is submitted to the court for approval. This plan consolidates your debts and outlines a single, manageable monthly payment that you will make to a bankruptcy trustee for a period of three to five years. The trustee then distributes these funds to your creditors according to the plan’s terms.

The plan will prioritize certain debts. For example, it will allow you to catch up on missed mortgage or car payments over the life of the plan, stopping foreclosure and repossession. It may also provide for paying a percentage of your unsecured debts, often pennies on the dollar, based on what you can reasonably afford.

Benefits of Chapter 13:

Save Your Home: It provides a legal mechanism to stop a foreclosure sale and cure your mortgage arrears over time.
Keep Your Property: You can protect all of your assets, even those that might not be fully exempt in a Chapter 7.
Manageable Payments: It restructures your debt into one affordable monthly payment.
Co-signer Protection: In some cases, it can protect friends or family members who have co-signed loans for you.
At the end of a successful plan, any remaining eligible unsecured debt is discharged.

Chapter 11 & Subchapter V: A Lifeline for Businesses

For businesses facing financial distress, bankruptcy doesn’t have to mean the end of the road. Chapter 11 provides a powerful framework for companies to restructure their finances, negotiate with creditors, and continue operating, ultimately emerging as a healthier, more viable entity.

Traditional Chapter 11 Bankruptcy
Chapter 11 is typically used by large corporations, but it is also available for partnerships, sole proprietorships, and even some individuals with very large debts. The business owner, known as the “debtor-in-possession,” usually remains in control of business operations while developing a plan of reorganization to pay its creditors over time. This process allows a business to:

Reduce debt and interest rates.
Reject burdensome contracts and leases.
Secure new financing.
Sell off non-essential assets in an orderly fashion.
Provide a stable environment to rebuild and return to profitability.

Chapter 11 can be complex and expensive, which historically made it difficult for smaller businesses to use effectively. That’s where Subchapter V comes in.

Subchapter V of Chapter 11: A Streamlined Path for Small Businesses
Recognizing that the vast majority of companies in Arizona are small businesses, Congress enacted the Small Business Reorganization Act (Subchapter V) in 2019. This new law makes the benefits of Chapter 11 more accessible, affordable, and efficient for small business debtors.

Udall Shumway was one of the very first firms in the country to file a Subchapter V case. Our attorneys are not just familiar with this law; they are pioneers in its application.

Who is Subchapter V for?
It is designed for small businesses (including sole proprietors) with debts below a certain threshold. It provides a more streamlined and less costly path to reorganization.

Key Benefits of Subchapter V:

Faster Process: The timelines are condensed, reducing legal fees and uncertainty.
Greater Control for Owners: Business owners have more power to get a reorganization plan confirmed, even over the objection of creditors.
No Creditors’ Committee: In most cases, there is no need for an official creditors’ committee, which is a major cost-saving measure.
A Trustee as a Guide: A Subchapter V trustee is appointed to help facilitate a consensual plan, acting more as a guide than an adversary.

For a small business in Mesa, Subchapter V can be the difference between closing your doors and building a bridge to a sustainable future. Our experience in this specific area is a direct benefit to local entrepreneurs and the backbone of our economy.

Beyond Bankruptcy: Creditor Rights and Receiverships

Our firm’s deep understanding of financial law extends to representing the other side of the equation. We provide robust legal services for creditors who need to protect their financial interests when a debtor files for bankruptcy or is in default.

Our partner James Reed has extensive experience handling creditor claims for some of Arizona’s largest companies, including in highly complex cases. Our creditor rights services include:

Filing proofs of claim to ensure you are included in any repayment.
Representing creditors in adversary proceedings, such as actions to have a debt declared non-dischargeable due to fraud.
Protecting secured interests in collateral.
Negotiating with debtors and trustees to maximize recovery.
Asserting mechanic’s lien and payment bond rights.

We also have significant experience in state court receiverships, both voluntary and involuntary. A receivership can sometimes be a strategic alternative to bankruptcy, where a neutral third party (a receiver) is appointed by the court to manage and/or liquidate a company’s assets. Our attorneys can guide businesses or creditors through this intricate process.

Your First Step: A Confidential and Compassionate Consultation

We know that reaching out for help is the hardest part. The uncertainty of what to expect can be paralyzing. At Udall Shumway, your first meeting with us is a confidential, no-judgment conversation designed to give you clarity and hope.

Here’s what you can expect when you work with us:

The Initial Consultation: You will meet with an experienced bankruptcy attorney who will listen to your story, review your financial situation, and answer all of your questions.
Strategic Analysis: We will analyze your debts, assets, income, and goals to determine all available options, including non-bankruptcy alternatives like debt negotiation.
A Clear Recommendation: We will explain the pros and cons of each path and recommend the strategy we believe will best achieve your objectives.
Guidance and Support: If you decide to move forward, we will be with you at every step, handling the paperwork, communicating with creditors, and representing you in all legal proceedings. Our mission is to lift the burden from your shoulders so you can focus on moving forward.

Contact Our Trusted Mesa Bankruptcy Lawyer Today

You do not have to let debt define your future. A fresh start is not only possible—it is your right under the law. With the experienced, compassionate, and strategic guidance of Udall Shumway, you can navigate this process with confidence and emerge on the other side with a solid foundation for financial stability.

For over 50 years, we have been helping our Mesa neighbors right wrongs and seek justice. Let us help you find your path forward.

Don’t wait another day to find relief. Contact our Mesa bankruptcy team for a confidential consultation to discuss your options.

Call our dedicated line now at 480-461-5300.

You can also reach out to our bankruptcy partners directly via email for a private inquiry at jbr@udallshumway.com or jes@udallshumway.com. Your journey to a brighter financial future starts with a simple conversation. We are here to listen.

Udall Shumway – Mesa Office

1138 N Alma School Rd #101
Mesa, AZ 85201
P: (480) 461-5300