Picking the Right Debt Resolution Plan for You
We provide high-quality legal services for contractors, subcontractors, property owners, and suppliers throughout Scottsdale and the greater Phoenix area.
Bankruptcy & Related Areas of Expertise:
- Exemption Planning
- Chapter 7 Liquidation
- Chapter 13 Repayment
- Debt Negotiation & Settlement
• Your Partner in Debt Relief
Filing for bankruptcy can be stressful and overwhelming. At Thomas Law, PLLC, we work to make the process as straightforward as possible by providing individualized advice tailored to your situation.
Types of Bankruptcy Options
Explore the different paths to debt relief available under Arizona and federal law. From protecting your assets through exemption planning to filing Chapter 7 or Chapter 13 bankruptcy, and even negotiating directly with creditors, we’ll help you choose the option that best fits your financial situation and long-term goals.
Exemption Planning
For some clients, the first step is ensuring that protected assets remain safeguarded from creditors. Arizona law specifies which assets are beyond creditor reach, and proper exemption planning can preserve these assets while still moving toward a debt resolution plan.
Chapter 7 Bankruptcy
Chapter 7 allows individuals or businesses to discharge most unsecured debts when repayment is no longer possible. This process may require liquidation of certain assets but often allows you to keep essentials.
Chapter 13 Bankruptcy
Chapter 13 enables you to retain property while repaying debts over three to five years. It’s ideal for those with a steady income who need time to catch up on overdue payments or restructure obligations.
Debt Negotiation Services
Debt negotiation is an alternative to bankruptcy. Instead of filing, you and your creditors agree to a reduced payoff amount. This can help you avoid the long-term credit impact of bankruptcy while still resolving your debt.
Frequent Questions
What types of bankruptcy are available in Arizona?
The most common options are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 eliminates qualifying unsecured debt, while Chapter 13 creates a court-approved repayment plan over time. The right option depends on income, assets, and financial goals.
How do I know if bankruptcy is the right solution for me?
Bankruptcy may be appropriate if you are overwhelmed by credit cards, medical bills, personal loans, wage garnishments, or lawsuits. An attorney can review your income, debts, and assets to determine whether bankruptcy or another option makes sense.
What debts can be discharged in bankruptcy?
Many unsecured debts such as credit cards, medical bills, personal loans, and utility arrears can be discharged. Some debts, including most student loans, child support, and recent tax obligations, are generally not dischargeable.
Will bankruptcy stop foreclosure, repossession, or wage garnishment?
Yes. Filing bankruptcy triggers an automatic stay that immediately stops most collection actions, including foreclosure proceedings, vehicle repossessions, wage garnishments, and creditor harassment.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 focuses on eliminating debt quickly for qualifying individuals. Chapter 13 allows you to repay part of your debt over time while keeping certain assets. Eligibility depends on income, debt limits, and financial structure.
Can I keep my house or car if I file bankruptcy?
Many filers are able to keep essential assets using Arizona exemption laws. In some cases, Chapter 13 bankruptcy can help stop foreclosure or repossession and allow you to catch up on missed payments.
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy typically remains on your credit report for up to ten years, while Chapter 13 may remain for up to seven years. Many people begin rebuilding credit much sooner than expected.
Will bankruptcy ruin my credit forever?
No. While bankruptcy impacts credit initially, many filers see improvement within one to two years by reducing debt and rebuilding responsibly. Ongoing delinquent debt often causes more long-term damage than bankruptcy itself.
How much does it cost to file bankruptcy?
Costs depend on the type of bankruptcy and case complexity. Many attorneys offer clear pricing and payment options. Filing without proper legal guidance can lead to costly mistakes or case dismissal.
Do I need a bankruptcy attorney to file?
While filing without an attorney is possible, bankruptcy law is complex and unforgiving. An experienced bankruptcy attorney ensures proper filings, protects assets, and avoids errors that could jeopardize relief.
Why hire a Scottsdale bankruptcy attorney?
A local bankruptcy attorney understands Arizona exemption laws, trustees, and court procedures. This local knowledge helps protect your assets and move your case forward efficiently.