When filing bankruptcy in Arizona you are required to list not only all of your debts but all of your assets. The most popular chapter of bankruptcy that is filed is a Chapter 7 Bankruptcy or a “Liquidating Bankruptcy”. In a chapter 7 bankruptcy; if you have non-exempt property there is a real possibility that it could be seized and sold at auction with the money going to your creditors. This does not apply to exempted property in an Arizona Chapter 7 bankruptcy filing.
However, in Arizona there are laws known as exemptions that protect your property. Most people have heard of the homestead exemption that protects your home, but most are unaware that there are numerous other exemptions in Arizona that protect everything from your car to your bible to your shotgun.
Property that you are paying back is not taken at all in a Chapter 13 bankruptcy filing as you are paying back your debt over time. In an Arizona Chapter 7 bankruptcy filing a person’s nonexempt property is sold and the funds are distributed to your creditors to satisfy your debt. However, you can keep your exempt property in a Chapter 7 bankruptcy filing.
To get a better understanding of filing for bankruptcy protection, the differences between Chapter 7 and Chapter 13 bankruptcy, and what things might be exempted while filing for bankruptcy, contact Arizona bankruptcy lawyer Morgan McCain for a free consultation. Call (480) 263-1699 and get yourself on the road to a “Fresh Start” right away.