Can I file Chapter 7 bankruptcy in Arizona?
Many factors go into determining if a particular person can file chapter 7 bankruptcy within the state of Arizona.
To file bankruptcy in Arizona a person must reside within the state for the greater part of 180 days. The word reside has many meanings and to determine if you have resided in Arizona for the greater part of 180 days you should speak with a bankruptcy attorney.
To file a bankruptcy in Arizona you must also qualify under the means test. This generally means you must make less than the household median income for your family size in Arizona. Social Security benefits do not count under the means test. For the means test we take into consideration your last six months income, and if you are married we take into consideration your spouse’s income as well. If you are over the household median income we can do additional computations to see if we can still get you to qualify. You may not have to qualify under the means test if you have primarily business debts. Since bankruptcy takes into consideration your past income it is important that if you are expecting an increase in your income soon you may want to file a bankruptcy now while you still can file.
To file a bankruptcy in Arizona you also must not have filed a chapter 7 bankruptcy in the last 8 years that you received a discharge from. If you filed a chapter 7 bankruptcy that you received a discharge for in the last 8 years you may still qualify for a chapter 13. Dismissal is different than a discharge. A Discharge means you have a federal court order stating you are no longer obligated to pay certain debts, while a dismissal means you don’t have a discharge and your case no longer exists. If you filed a chapter 13 bankruptcy were you received a discharge then you may still be able to file a chapter 7 bankruptcy.
Even though you qualify for a chapter 7 bankruptcy there still may be reasons why you should not file now or ever. Chapter 7 is liquidation bankruptcy and if you have assets that aren’t protected under state law then you may not want to file a chapter 7 bankruptcy, because you could lose those assets. Not all debts are dischargeable in bankruptcy and as such you should speak with an attorney to determine if your debts are dischargeable.
Bankruptcy is very complicated and you should be commended for researching it on your own. After the changes in the bankruptcy code in 2005 many attorneys refuse to practice bankruptcy, because it became very complicated. It would be wise to sit down with a bankruptcy attorney to discuss your options. If you contact our office at 602-266-0081 we would be happy to set you up with a free consultation to speak with a bankruptcy attorney.
Roni Beaucage