Best Bankruptcy Lawyers in Catalina Foothills, AZ

Chapter 7 includes the immediate liquidation of your non-exempt assets while Chapter 13 allows for the value of your non-exempt assets to be paid to your creditors over a period of three to five years.

You are entitled to a $6,000 exemption for one vehicle if you file individually. Married couples filing jointly are granted two $6,000 exemptions that may be used on two vehicles only. One exemption of $6000 can be used on each vehicle. Remember if you owe more than the vehicle is worth then there is no equity in it and so long as you make the payment you can keep it.

Arizona law provides a $6,000.00 tools of the trade exemption that can be applied to a work vehicle so long as that vehicle is used exclusively for work. If you are married and your spouse works in the business then a $12,000.00 exemption is available. If this vehicle has no equity than so long as you make the payment you can always keep the vehicle.

First, you need to realize when you purchased the vehicle you signed a contract stating that the filing of a bankruptcy petition is a breech of contract. When you breach a contract the other party is entitled to exercise their legal remedies including the repossession of the vehicle. A reaffirmation agreement is a new contract. The terms and conditions of which should be reviewed by your attorney. One advantage of signing a reaffirmation agreement is that the creditor is agreeing not to repossess your vehicle so long as you continue to make the payments. Another advantage is that your payments will be reported to the credit bureaus. A disadvantage of a reaffirmation agreement is that it is post bankruptcy debt. So if you fail to make the payment and the car is repossessed then you will be responsible for any debt due after the vehicle is sold at auction.

A discharge is a permanent injunction against creditors from attempting to collect debts. It applies to most unsecured debts like credit cards, medical bills, personal loans, deficiency balances on a vehicle after repossession, home equity lines of credit, some tax debt and others.