$0 Down Tucson Bankruptcy Attorneys

Filing Chapter 7 Bankruptcy in Tucson, Arizona

Chapter 7 bankruptcy or “liquidation bankruptcy” is the most common types of consumer bankruptcy in Tucson and throughout Arizona.  Through Chapter 7, you can discharge most or all unsecured debt.  Declaring BK in Tucson will alleviate these debts.  Unsecured debt is any general obligation or debt that is not backed by collateral.  A few of the more popular types of  “unsecured debt” include credit card debt and medical bills.

Usually, the whole Chapter 7 process in Pima County can take up to six months to complete. However, before you can get the benefits provided by Chapter 7, you need to qualify for eligibility.  Our Tucson Bankruptcy Attorneys use a “means test” to see if you are eligible to file a Ch. 7 BK.  The Arizona Chapter 7 Means Test compares your income with the Arizona state median income. 

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Bankruptcy Attorneys in Tucson, Arizona

What is Bankruptcy?

Bankruptcy gives people in Tucson struggling with debt an opportunity to reorganize, and in some cases, fully erase debt. Also, there are multiple Chapters of Bankruptcy, each with different benefits and restrictions. Plus, bankruptcy may be filed by individuals and businesses. Additionally, to file a bankruptcy, the debtor must submit a petition accompanied by schedules of assets and debts, along with other financial information. Lastly, many Chapters of Bankruptcy require the debtor to take credit counseling courses and attend a 341 Meeting of Creditors.  Consult out Tucson Bankruptcy Lawyer for debt relief assistance in Pima County, Arizona.

Chapter 7 Qualification and Exemptions

Chapter 7 Bankruptcy liquidates many unsecured, non-priority debts. Also, common debts discharged by a Chapter 7 include credit cards, medical expenses, and payday loans. Additionally, deficiency balances from vehicle repossessions may be discharged.  Plus, the debtor will have the option to surrender a financed vehicle they can’t afford.

There are many things that can disqualify you from filing Chapter 7 bankruptcy in Tucson.  Therefore, if you make more than the median income for your state, you will need to prove through the Bankruptcy Means Test that you qualify. Everything you own must fall under an applicable “exemption” or risk being seized by your Trustee.  Your trustee sells your assets to pay creditors.

Frequently used exemptions in Arizona include:

  • $150,000 for a house.
  • $6,000 for a motor vehicle.
  • $6,000 for household goods and furnishings.

Lastly, you can only file Chapter 7 Bankruptcy once every 8 years.   Call (602) 609-7000 for more details.

What is a Tucson Chapter 13 Bankruptcy?

A Chapter 13 Bankruptcy reorganizes your debts into payments tailored to exactly fit your budget. Plus, if you make below the median income level, your plan will be 3 years. Additionally, your plan will be 5 years if you make more than the median. You will make your monthly payments to the trustee, who will distribute it among your creditors. Any qualifying debts with a remaining balance at the end of your payment plan will be discharged. 

Debts Eliminated by Filing Chapter 7 Bankruptcy

Chapter 7 Bankruptcy works by liquidating many unsecured, non-priority debts. Also, by discharging common debts in Chapter 7 including credit cards, medical and Dr. expenses, and payday loans. Additionally, deficiency balances from vehicle repossessions may be discharged.  Plus, the debtor will have the option to surrender a financed vehicle they can’t afford.  Also, our Tucson Bankruptcy Attorneys can also get you set up with a car dealer specializing in clients going through the bankruptcy process.

There are many things that can disqualify you from filing Chapter 7 bankruptcy in Tucson.  Therefore, if you make more than the median income for your state, you will need to prove through the Means Test that you qualify. Everything you own must fall under an applicable “exemption” or risk being seized by your Trustee and sold to pay your debts. Frequently used exemptions in Arizona include $150,000 for a house, $6,000 for a motor vehicle, and $6,000 for household goods and furnishings. Lastly, filing Chapter 7 Bankruptcy is only optional once every 8 years. 

If I File for Bankruptcy in Tucson, Do I have to List all of my Debts?

Yes, you must include all of your debt when filing a personal bankruptcy in Tucson, Arizona.  This includes:  credit cards, student loans, medical bills, loans from friends or family, and personal loans.  Even debts that are contingent, such as debts that have not come due yet or ones that you are a personal guarantor.  You can not be selective about which one of your debts you are going to include in your bankruptcy.  Unfortunately, you have to include them all.  The bankruptcy laws require each and every debt to be listed on your bankruptcy petition. 
Many people often attempt to leave off a credit card, hoping for active credit after filing bankruptcy.  Credit cards will most likely be deactivated after your bankruptcy filing date, regardless if listed on the bankruptcy schedules in your bankruptcy petition. The best way to get credit post-bankruptcy is to just follow the rules.  There will be ample credit card companies trying to give you credit after you file for bankruptcy in Tucson, AZ.     


What are the differences between Chapter 7 and Chapter 13?

  • -Repay most of your debts in a Chapter 13 before discharge.  However,  in a Chapter 7 bankruptcy, repayment of your debts is only required in special circumstances.
  • -A Chapter 13 lasts 3-5 years depending on your income.  Whereas, a Chapter 7 bankruptcy filing is usually much faster, about 3-5 months. 
  • -Chapter 13 Bankruptcy allows you to include arrearages on expenses such as your car, mortgage, and child support into your plan.
  • -The filing fee for a Tucson Chapter 7 is $338.  Fees for filing a Chapter 13 is $313. Keep in mind, attorney’s fees are typically much higher in a Chapter 13.
  • -Some debts are dischargeable in Chapter 13 bankruptcy but not Chapter 7, such as junior mortgages on your home.  Therefore, our Tucson Bankruptcy Lawyer can help you determine which Chapter of Bankruptcy best applies.

How does Zero Down Bankruptcy work?

Tucson Zero Down Bankruptcy is a payment plan option available for qualifying Chapter 7 filers. Instead of paying for your bankruptcy up front, it allows you to pay both your filing fee and your attorney’s fees in affordable monthly installments after your case is filed- after extra expenses like wage garnishments have been stopped. Plus, your payment plan can be up to 12 months post-filing and you will be charged no interest. Also, payments are credit reported, helping your score rise faster if you make your payments.  Contact our Tucson bankruptcy lawyer today.

We are able to offer Zero Down Bankruptcy because of a process known as “bifurcation,” or splitting your case into two parts. Additionally, we file a skeleton petition that includes only minimal information. Plus, other information like your income and contact information. Any debts incurred up to that date of filing  are discharged. Plus, the court gives two more weeks to submit the rest of your petition. Thus, debts incurred between the skeleton petition and the full petition filing (i.e., our legal work on your case) are not discharged.

 “The Automatic Stay” Protection in Chapter 7 and Chapter 13 Tucson Bankruptcies

The Automatic Stay is a protection provided by Chapter 7 and Chapter 13 filers alike. Once your petition has been filed, the Automatic Stay prevents your creditors from garnishing your wages, repossessing your vehicle, and foreclosing your home. Additionally, the Stay provides continued protection until your bankruptcy case is dismissed or discharged.

 The Automatic Stay is only a temporary protection as it applies to some debts. Thus, if you are being garnished for a non-dischargeable debt such as child support, garnishment will resume once your case has been completed. However, garnishment for debts such as credit cards will not resume. Thus, if you are behind on car or house payments, you will need to resolve the past-due balance before your case is discharged in a Chapter 7. Also, if this isn’t feasible, a Chapter 13 allows you to pay your arrearages over the course of your 3-5 year repayment plan.




The cost of a bankruptcy will vary depending on which Chapter you file.  Also, dependent upon which attorney you choose.  Plus, complication of you case and payment arrangements.   therefore, if you choose a Zero Down payment arrangement, your payments will depend on the payment frequency and how long you schedule your plan to be.


A Chapter 7 Bankruptcy will remain on your credit for 10 years from the date of filing. However, you should be able to open new lines of credit, e.g., credit cards, financed vehicles, once your case is discharged (3-5 months) or sooner. Therefore, you will be eligible for home loans 2 years from the date of discharge.  Contact our Tucson Bankruptcy Lawyer for debt relief help.


Your co-debtors, including your spouse (if you don’t file jointly), will be notified of your bankruptcy. Plus, your creditors will be included on a matrix and sent notice once your case is filed. Also, if your wages are being garnished, you will have to provide your employer with your case number to stop the garnishment. Plus, if you rent your residence, your landlord will only be notified if you intend to break the lease in the bankruptcy. Besides that, bankruptcy is a matter of public record.  Only those who specifically search the bankruptcy filings for your name will know.


If you file a Chapter 7 Bankruptcy, you may keep paid-in-full and financed current vehicles with $6,000 or less in equity. Also. married couples may have one vehicle with $12,000 equity or two vehicles with $6,000 each.  Contact our Tucson debt relief attorney for more information.

Exemption limits will not apply to paid-in-full vehicles in a Chapter 13. If your vehicle is financed, the entire balance must be fully paid over the course of your payment plan. Any past-due balance will also be included in your plan. 


For Chapter 7 filers, the Homestead Exemption in Arizona is $150,000. The trustee may sell your house and contribute any amount over $150,000 if your equity exceeds that amount. In a Chapter 13, the entire balance of your mortgage won’t need to be paid during your bankruptcy as it does with financed vehicles. Your mortgage payment might be included in your plan payments depending on where you file.  Filing in Tucson, it is. Also, any past-due balance on your mortgage will be included in your plan.