Reduce Stress & Hassle Throughout The Bankruptcy Filing Process
Having unmanageable debt is stressful. If you find yourself in this situation, you probably spend a lot of time worrying about the future, avoiding creditor calls, and trying to find a solution for your financial issues. The good news is that bankruptcy may be able to help you. When you file bankruptcy, there are several steps you can take to reduce stress and hassle throughout the process. If you’re considering bankruptcy, read on to learn more about how to make sure that your bankruptcy goes smoothly.
Check That You Haven’t Exceeded Pre-Bankruptcy Credit Card Spending Limits
Some people try to abuse the bankruptcy system by running up their debts shortly before filing. However, this is against the bankruptcy code, and bankruptcy trustees are watchful to make sure this type of abuse doesn’t happen. That’s why there are strict limits on credit card spending in the period leading up to a bankruptcy. You may not exceed $1,000 in cash advances in the 70 days preceding your filing. You may also not spend more than $750 in luxury purchases in the 90 days before your bankruptcy. For more information about what constitutes a luxury purchase in a bankruptcy context, schedule your free consultation with one of our Arizona bankruptcy lawyers today.
Learn Your State’s Bank Account Exemption, & Inform Your Attorney Of Your Pay Day
Many states require you to apply an exemption to your bank account. Your trustee will review your account statements to check your balance on your date of filing. If your accounts exceeded your state’s exemption limits on the date of filing, your trustee will require you to pay that excess amount towards your bankruptcy estate. Failure to do so can result in case dismissal. That’s why you should make sure that your attorney knows which day you (and your spouse, if applicable) get paid to avoid filing your petition on that day.
Do Your Taxes Prior To Filing Bankruptcy In Phoenix
Sometimes, our clients are behind on tax filings but still have an immediate need for bankruptcy. Bankruptcy trustees require that you have your tax returns ready should they need to review them. If you file bankruptcy before catching up on taxes, this could put you in a precarious position. It may take you longer than you expect to catch up on tax filings. This could delay your bankruptcy, or even cause it to be dismissed. Whenever possible, deal with your taxes before declaring bankruptcy.
Double Check That You Have Included All Of Your Creditors In Your Creditor Mailing Matrix
When you declare bankruptcy, you must file a petition as well as a creditor mailing matrix. You must list all of your creditors, as well as their mailing addresses, so that they can be notified of your bankruptcy filing. This is how your creditors know that the Automatic Stay is in place, and that they can’t proceed with actions like wage garnishments, repossessions, lawsuits, and more. If you omit any of your creditors from your creditor mailing matrix, they may unknowingly continue debt collection efforts despite the Automatic Stay being in place. Your bankruptcy will be much easier if you remember to include all of your creditors in your creditor mailing matrix the first time.
The Means Test To Qualify For Chapter 7 Bankruptcy: Make Sure a Qualified Arizona Bankruptcy Attorney Conducts These Calculations
There are two ways to prove your income qualifies for Chapter 7 bankruptcy. The first is by making less than the state median for your family size. The second way is to pass the Means Test. This test deducts mandatory payments, like taxes, mortgage payments, child support, student loans, etc., to determine your disposable monthly income. If your disposable monthly income is negative, or falls within a certain range (based on your family size) you can still file Chapter 7 bankruptcy. This test is often far more complicated than it sounds, and some of your payments that seem mandatory may not count as necessary payments in the Means Test. A qualified bankruptcy attorney will make sure that you are eligible to file bankruptcy and pinpoint any obstacles that may arise in your case. For a free debt evaluation with one of our experienced Arizona bankruptcy attorneys, call or use our online form to schedule today.
Make Sure You Understand What Will Happen With Your Tax Refund When You File Bankruptcy
When you file bankruptcy, your trustee may have the right to seize your tax return in the future to pay your creditors. This may be a minor inconvenience for some, but can also be a major part of financial planning for some families. The amount your trustee could be entitled to depend on the month you file. For example, when you file in January, your trustee could be entitled to 1/12 of your tax return. But if you file in November, your trustee could be entitled to 11/12 of your tax return. If your tax restaurants are a significant part of your yearly financial planning, you should discuss the tax implications of your bankruptcy filing with an experienced Arizona bankruptcy attorney.
Find An Experienced Bankruptcy Lawyer In Arizona Who Offers Payment Options That Work For You
When you file bankruptcy, it may seem contradictory to pay a considerable portion to your bankruptcy attorney to file your case for you. However, it is usually well worth the cost. A good attorney will help you navigate all the potential obstacles described above, and more. However, many people find it extremely difficult to afford a bankruptcy attorney. This is because most bankruptcy attorneys require that you pay your attorney’s fees AND your filing fees ($338 for a Chapter 7, $313 for a Chapter 13) before your case is filed. For many people struggling with debt and considering bankruptcy, this is simply infeasible. That’s why our Arizona bankruptcy lawyers offer payment plans structured to work with your budget. You may be eligible for our payment plans that start as low as $0 down. This immediately triggers the protections of the Automatic Stay. Plus, you will have 12 months after filing to pay off your bankruptcy in affordable installments with a 0% interest rate. This payment plan includes credit reporting, which will help you build a new, positive credit history after discharging your debts in bankruptcy.
For additional information on filing bankruptcy in Arizona, the cost of filing bankruptcy, Chapter 7 bankruptcy in Arizona, Chapter 13 bankruptcy in Arizona, an Emergency Bankruptcy filing, Stopping a Wage Garnishment, or any other bankruptcy related question, give our Arizona Debt relief Team a call for a free consultation and debt evaluation.