Clint W. Smith, P. C.

Clint Smith has developed positive working relationships since 1986 with the courts, attorneys and trustees in the Phoenix Bankruptcy Court. This experience and these relationships benefit our clients who file bankruptcy petitions, and creditor clients alike.

Clint W. Smith

Arizona Chapter 7 Bankruptcy Attorney

A Scottsdale area bankruptcy law firm

Chapter 7 Bankruptcy is referred to as a "liquidation" bankruptcy in Arizona cities like Scottsdale and is found in Title 11 of the United States Code. Generally, unsecured creditors, such as credit cards, medical bills, deficiencies, and the like, will not be paid. There are certain types of debts which are not discharged under Chapter 7 bankruptcy, such as those that arise as alimony and child support under divorce court orders, sales taxes, pay roll taxes, recent income taxes, and student loans. These are generally not discharged under a Chapter 7 bankruptcy proceeding.

Some common facts about filing Chapter 7 in Arizona include:

  1. People must turn over to the Bankruptcy Court appointed Trustee any property that is not protected by the law. Those items which are protected, or "exempt," in Arizona include $150,000 of equity in one's residence, a motor vehicle, furniture, wedding rings, tools of the trade, retirement accounts, and several other items. If a person has non-exempt assets, such as a personal injury claim, tax refunds, boats, jet skis, ATVs, or the like, the Trustee will take ownership of those items, and sell them, using the funds to pay creditors.
  2. The effect on one's credit report is approximately a lower score of 100 to 120 points, but that is obtained when the bankruptcy discharge hits the credit reporting agencies, which is about 5 months after filing the bankruptcy case in Arizona.  Although it varies on a case-by-case basis, our Tempe bankruptcy attorneys explain further how bankruptcy can affect your credit score.  In fact, delcaring for bankruptcy can actually improve your credit score in some cases.
  3. As to secured debts, such as real property and vehicles, Chapter 7 allows people to keep those assets as long as they continue to make the required monthly payments already established. We find that many of our clients have been mis-informed about their assets, and are concerned about filing bankruptcy, because they feel they may lose their homes or vehicles. This is simply not the case if they continue to make their monthly payments to the creditor.

Contact our bankruptcy attorneys in Arizona online or via phone at (480) 807-9300.  Our bankruptcy law firm serves in the surrounding areas of Scottsdale, Mesa, Tempe, Gilbert, and Chandler, Arizona.