It’s important for companies or entities doing business in Arizona to learn Arizona bankruptcy law basics. The 2005 Bankruptcy Act requires all individuals seeking bankruptcy relief to participate in credit counseling for a minimum of six months before filing. Debtors are also be required to enroll in and complete a financial management course. While the federal guidelines are the same for all states, guidelines on exemptions can vary from state to state. Arizona bankruptcy laws allow debtors to keep certain personal property up to a certain dollar amount after filing bankruptcy.
Bankruptcy is rarely an easy decision for small businesses. To determine if it’s the right choice, business owners should evaluate the future of the business, the amount of debt owed by the company and the company’s ability to generate substantial assets to cover those debts and still clear a profit. To learn more about Arizona bankruptcy law basics, you should:
1. Research your filing options under Arizona bankruptcy law.
2. Determine if your business qualifies for Chapter 7 under AZ bankruptcy law.
3. Seek professional advice from an Arizona bankruptcy attorney.
Gain a better understanding of Arizona bankruptcy lawDebtors can choose to file Chapter 7 or Chapter 13 under Arizona bankruptcy law. Chapter 7 basically wipes the debt slate clean while debtors who file Chapter 13 will still be responsible for paying all or a portion of their debts over a specific period of time. Bankruptcy Arizona Chapter 7 guidelines require debtors to meet specific income guidelines to qualify. Under Arizona bankruptcy laws, debtors whose income exceeds the state's median income are not eligible to file Chapter 7. Arizona bankruptcy court will help debtors determine the option for which they qualify.
Arizona Bankruptcy Court website.
Determine the filing option under which you qualify according to Arizona bankruptcy lawBankruptcy laws apply to individuals and legal business entities. Companies may choose to file bankruptcy to get out from under a non-profitable business. Under Arizona bankruptcy laws, corporations and partnerships are entities that can file Chapter 7 or Chapter 13 on their own. In a partnership Chapter 7 filing, the trustee can file a lawsuit against the partners if the partnership has insufficient assets to cover partnership debts.
Learn what assets you can keep under Arizona bankruptcy lawsUnderstanding Arizona bankruptcy laws can be challenging. Seeking consultation from an Arizona bankruptcy lawyer can help you gain a better understanding of qualification criteria and Arizona exemptions for which you may be eligible. An attorney can also help you explore other relief options.
- Arizona bankruptcy laws include an automatic stay which requires creditors to cease collection efforts when debtors file bankruptcy. This includes foreclosure actions, repossessions, lawsuits and wage garnishments.