Can I keep my house when filing Bankruptcy in Arizona?
Yes, provided you stay current on the mortgage payments which come due after you file your bankruptcy AND you faithfully make your Chapter 13 Plan payments.
What are Chapter 13 Plan payments?
When you file a Chapter 13 Bankruptcy in Arizona, you are required to make regular payments to the Chapter 13 Trustee, which payments are then used to pay your mortgage arrearages, bankruptcy expenses, and other debts which are being paid through your Chapter 13 Plan.
Should I file a Chapter 7 or 13 Bankruptcy in Arizona?
This depends on a number of factors, including:
- Whether you have already received a Chapter 7 Discharge in Arizona within the past 8 years
- Whether you have mortgage arrearages which you need to make up in a chapter 13 Plan
- The amount of debt (both secured and unsecured)
It is best to consult with an attorney to make a determination as to how to proceed in bankruptcy.
Will I have to give up my household goods when Filing Bankruptcy in Arizona?
It is a common misconception that when Filing Bankruptcy in Arizona, the court sells all of your belongings. As a general rule, unless you have some personal possessions which are particularly valuable, you will be able to keep your belongings.
Will all my debts be discharged when Filing Bankruptcy in Arizona?
By law, certain debts, including child support, taxes and student loans are not dischargeable. If you are Filing a Chapter 13 Bankruptcy in Arizona, these debts (not including student loans which need not be paid, but are not discharged) must be paid through the Chapter 13 Plan. In Filing a Chapter 7 Bankruptcy in Arizona, these debts will not be discharged and you will still owe them after the discharge is entered.