Understanding Bankruptcy Law in Glendale & Peoria, Arizona

Unforeseen events such as illness, divorce, or job loss often create financial stress.  When bills stack up, collection agencies and creditors begin calling.  If you are overwhelmed with debt, you need solutions and financial relief.  The Law Office of Michael J. Fatta, PLLC helps clients understand how bankruptcy law in Peoria, AZ relates to their situation so they can make informed decisions about getting out of debt. 

Experienced legal guidance can help you decide whether bankruptcy is the right answer.  We also provide counsel for Glendale bankruptcy litigation.

Changes in Federal Bankruptcy Laws

Because bankruptcy is regulated at the federal level, when Congress passed stiffer bankruptcy laws in 2005, people across the nation felt the repercussions.  Under federal changes, bankruptcy laws in Glendale and Peoria make it harder for many people to file bankruptcy. 

Challenges include:

• Chapter 7 eligibility requires passing a means test that calculates income by comparing it with the income of all Arizona residents. 
• If your income is greater than the median Arizona income, you are not eligible to file Chapter 7.
• Many people are forced to file Chapter 13 bankruptcy instead of Chapter 7 bankruptcy.  
• You must receive credit counseling from a government approved credit counseling agency before you are eligible to file bankruptcy.

While receiving credit counseling, creditors are still free to contact you and demand payments.

• Extensive paperwork is now required, making the bankruptcy process more difficult.
• After filing bankruptcy, you must complete a financial management course before your debts are discharged.
• Alimony and child support are no longer dischargeable debts.
• Certain taxes are no longer dischargeable under bankruptcy.  IRS liens against property remain enforceable after the bankruptcy is complete. 
• Un-filed tax returns must be filed, and creditors and trustees are provided with copies of the returns. 

Since federal bankruptcy law changes favored the banks and credit companies, it became harder for people with consumer debts (home mortgages, cars, etc.) to get relief.  Yet, filing bankruptcy in Peoria & Glendale still offers benefits.  Understanding the bankruptcy process and navigating the pitfalls requires experienced legal help. 

The best way to find out whether you can benefit is to discuss Glendale bankruptcy laws with a knowledgeable lawyer.  Get legal advice about filing bankruptcy.  Find out whether bankruptcy litigation in Glendale or Peoria, IL is appropriate for your situation.

Contact the Law Office of Michael J. Fatta, PLLC today and arrange a consultation.