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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In Arizona, bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code, which allows individuals and businesses facing insurmountable debt to seek relief through different types of bankruptcy chapters, most commonly Chapter 7, Chapter 11, and Chapter 13. Chapter 7 bankruptcy involves liquidating non-exempt assets to pay creditors and can lead to a discharge of most debts. Chapter 13 bankruptcy allows individuals with a regular income to create a repayment plan to pay back all or part of their debts over a period of three to five years. Chapter 11 is typically used by businesses and provides a way to reorganize and pay off debts while continuing operations. Arizona has its own set of exemptions that determine what property an individual can keep in a Chapter 7 bankruptcy, and these exemptions play a significant role in the process. It's important for those considering bankruptcy to consult with an attorney to understand the specific implications for their situation and to navigate the complex legal proceedings involved.

Legal Articles

State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

trustee

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Articles

Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

Arizona State Code