CHAPTER 7 CAN HELP ELIMINATE DEBT
Chapter 7 bankruptcy can help debtors get a fresh financial start by eliminating unmanageable debt while protecting exempt personal property. For many debtors, a Chapter 7 bankruptcy takes only a few weeks.
FAST FACTS ABOUT CHAPTER 7
When bankruptcy is right for you, one immediate benefit is the automatic “stay” issued when you file that suspends all collection activity, including creditor calls, wage garnishment, repossession, some lawsuits, and even home foreclosure.
Individuals and businesses can file Chapter 7. For individuals, debtors automatically qualify when their income is lower than the state’s median income based on household size. When a debtor earns more than that median income, he or she must pass the “means test” to qualify for Chapter 7.
Though Chapter 7 is known as the liquidation bankruptcy, many debtors who file are able to retain most or all of their personal property. Arizona uses comparatively generous property exemptions, most of which can be doubled to protect additional property when married debtors file bankruptcy jointly.