Questions You Should Ask Attorneys In Chandler, AZ When Filing For Bankruptcy

In Arizona, consumers file for bankruptcy when they are facing dire financial circumstances. These cases assist them in acquiring debt relief solutions to prevent legal actions started by their creditors. The most common reasons for filing a bankruptcy claim is foreclosure and repossession. The following are questions you should ask Attorneys Chandler AZ when filing for bankruptcy.

Does Bankruptcy Protect Consumers Against Late Child Support or Alimony Payments?

No, it doesn’t. The consumer is responsible for fulfilling all obligations of these court orders. If they are late in submitting these payments, the court can take action regardless of a bankruptcy status. This includes arresting the individual due to contempt of court.

Are All Debts Settled After the Bankruptcy Case is Over?

No, all debts aren’t settled after the bankruptcy case is over. The only debts that are settled are those that are included in the claim. All debts that were discharged are no longer the consumer’s responsibilities. However, any debts that weren’t a part of the claim and weren’t settled through disposable income require repayment after the bankruptcy.

What Happens If a Couple Divorces During a Bankruptcy?

The couple must continue to follow the plan set forth through bankruptcy court. If it is a joint bankruptcy, each party must submit the monthly payment. They can come to an agreement in their divorce case. However, all obligations must be met through bankruptcy court or the claim could be discharged.

Are Student Loans Discharged During These Cases?

Student loans can be discharged through bankruptcy if they generate a financial hardship. The consumer’s income defines whether or not they are suffering through a financial hardship. They must submit detailed information about their income that supports this claim. If the discharge is approved or not is at the discretion of the bankruptcy court.

In Arizona, consumers manage overwhelming volumes of debt. These debts are placed into a payment plan or assets are liquidated to settle them. The chapter chosen for the consumer is determined according to their income level and assets.