Can A Mesa Bankruptcy Lawyer Discharge My Debts
When you are facing financial hardship, filing for bankruptcy can provide you with a fresh start in life. The original aim of bankruptcy legislation was to provide debtors with an honest way to achieve a fresh start. Filing for bankruptcy can also help you when you are facing wage garnishment, foreclosures, lawsuits and other types of collections. According to the U.S. Bankruptcy Court for the District of Arizona, filing for bankruptcy will stop all collection activity aimed at obtaining funds from you. Obtaining this protection is referred to as receiving the "automatic stay" protection. A Mesa bankruptcy lawyer will help you obtain the automatic stay as soon as your bankruptcy petition is filed with the court.
Considerations In Discharging Your Debts
As soon as you file your petition with the court, the bankruptcy judge will begin considering the documents that you have submitted with your petition. You will need to submit documents that reflect the total value of your home, personal belongings, car and any other property that you may own. You will also need to disclose the value of any outstanding loans and debts that you have.
If you are attempting to file for a Chapter 7 bankruptcy, then the bankruptcy judge will ensure that your income level is below the median income level that has been set by the Means Test. The Means Test is a new test that Congress created in 2005 to ensure that people did not take advantage of filing for Chapter 7 bankruptcy when they could technically afford to file for Chapter 13 bankruptcy. You must pass the Means Test if you want to file for Chapter 7 bankruptcy. The court will also make the following considerations in deciding whether you qualify for Chapter 7 bankruptcy:
- The value of any second homes you own.
- Whether you have filed for Chapter 7 bankruptcy in good faith.
- Whether you made any charges for luxurious items in 60 days preceding your bankruptcy filing.
Managing Your Finances After The Discharge
After you have received a discharge of your debts in Chapter 7 bankruptcy, then a bankruptcy attorney in Mesa, Arizona may help you manage your finances. Your Mesa lawyer may help educate you about the importance of keeping a budget and avoiding credit card debt for the future.
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