Fresh Start

Fresh Start is a term used to describe a Chapter 7 bankruptcy filing in Arizona; also known as liquidation bankruptcy or personal bankruptcy (though this is not quite correct, since it is possible to file for individual bankruptcy with both Chapter 11 bankruptcy and Chapter 13 bankruptcy; and a business can file a Chapter 7 case). A fresh start is exactly as helpful as it sounds; removing the burden of overwhelming debt and allowing you to regroup and move forward with more success.

Chapter 7 bankruptcy is the most common type of bankruptcy filed by individuals in Arizona and it allows an individual or couple to make a financial fresh start by discharging most of their debt – which means eliminating the debt. To do this, all non-exempt property will be sold and the proceeds will be divided among creditors. Any debt that remains after the payout will be discharged unless the debt is specifically not dischargeable, such as a child support debt, spousal support debt, tax debt, or student loan debt.

Chapter 7 bankruptcy is the best solution for individuals and couples that have little property, and provides a quick and straightforward solution to serious debt problems. Those who file for Chapter 7 bankruptcy will lose some assets, but there are exemptions for a wide range of necessities such as home, car, clothing, tools, household items, and other provisions.

If you feel overwhelmed by debt, a fresh start could be the right solution financially, emotionally, and physically. Filing for bankruptcy in AZ can be overwhelming and the decision should be discussed with a qualified bankruptcy attorney. Experienced bankruptcy attorneys will be able to help you determine how the bankruptcy filing will affect your financial situation and your property before you file. Bankruptcy lawyers can help you discover how a fresh start to your personal finances can relieve the stress of overwhelming financial burden.