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It is very important that you obtain legal advice from an experienced attorney regarding your particular situation. Consultation before you take action will certainly cost you less than it will cost to fix your unintentional errors.
WHAT IS INVOLVED IN FILING A BANKRUPTCY?
There is a lot of information that must be disclosed when filing a bankruptcy.
In order to file a bankruptcy you must complete a series of documents that list all items that you own, all debts that you owe and all rights that you have. This also includes your income and expenses. If a business is filing, then there are a series of questions related to business issues. Everything you own or owe must be listed. This does not mean you cannot keep most, if not all, of those items that you list; this just means that you must be thorough in your listing all your debts and assets.
Exempt Property
Assuming that you have lived in Arizona for the last full 2 years, then the basic living items are exempt under Arizona law. I will review all these rules with you when we meet. Once the documents are completed they are signed and electronically filed with the Bankruptcy Court.
If you are filing a chapter 13:
If you are filing a chapter 13 you must also file a Plan of Reorganization, with other documents related to the Plan. In order to have a successful chapter 13 plan there must be in-depth analysis of income, expenses, arrears and fair market value of assets; along with certain transactions that you may have made before filing.
WHAT ARE THE COURSES REQUIRED IN ORDER TO FILE BANKRUPTCY?
These courses are on-line, by phone and are required for consumers.
Every consumer who files Chapter 7 or 13 bankruptcy will have to take a credit counseling “briefing” within 180 days PRIOR to filing their bankruptcy and file a certificate of compliance. There is a provision for emergency situations, but they still must prove that they tried to obtain the class within the last 5 days of filing, but they must take the class and file a certificate of compliance within 30 days after filing their bankruptcy Petition. There is also a financial management course that must be taken within 45 days after filing your bankruptcy. Failure to do so will result in additional fees and costs in order to get your discharge in your bankruptcy. There will be fees charged for those classes, unless you cannot afford to pay such fees. Diane and Jay will explain the process.
Warning – About all these Credit Counseling Companies
Their information regarding bankruptcy is often not accurate. You must talk to a bankruptcy attorney in your State. People may try to sell you this second class before filing, do not take this offer. We will provide you with information about some great providers.
Important Note: no matter who you chose to provide these classes – make sure to confirm that they are approved by the US Trustee’s Office – Credit Counseling and Debtor Education.
DISCHARGE
The discharge is not the end of the bankruptcy. The Trustee and the court have their responsibilities before your case is closed.
Depending on your situation there may be more work for you.
GREAT JOB!!!
The Discharge is the magic document that every debtor waits for. In a chapter 7 the discharge usually comes from the Court approximately 4 months after your documents were filed starting your bankruptcy. In a chapter 13 you will not receive a discharge until after your entire Plan has been completed (3 to 5 years).
A chapter 7 business bankruptcy does not receive a discharge.