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

Filing Bankruptcy in Arizona

Information Required to File for Bankruptcy

Filing for bankruptcy in Arizona is not as simple as one might assume.  The first and perhaps most important decision before filing for bankruptcy is deciding under what chapter should you seek protection.  On the personal level, an individual can choose between Chapter 7 and Chapter 13 on the Bankruptcy Code.  Because this choice has a significant impact on your future, you should meet with experienced bankruptcy attorney Clint W. Smith before filing for bankruptcy in Arizona.

Chapter 7 bankruptcy

A Chapter 7 bankruptcy proceeding calls for an almost total liquidation of your assets to pay off all or almost all of your creditors.  Chapter 7 bankruptcy may not pay all creditors the entire amount they are owed, but most creditors usually receive something.

Before filing for Chapter 7 bankruptcy in Arizona, you must meet these threshold standards:

  • You were not dismissed within the past 180 days from any bankruptcy proceeding for failing to comply with a court order or failing to appear before the court
  • You have not voluntarily dismissed a bankruptcy proceeding after creditors attempted to seek relief from the bankruptcy court for property on which they hold liens
  • You attended credit counseling within the 180 days prior to filing.

In addition to these thresholds, you must be able to show that your average monthly income over the previous five years is less than $11,725 or that your average monthly income over the past five years is less than 25 percent of your unsecured debts.

Chapter 13 bankruptcy

A Chapter 13 bankruptcy petition is very different from a Chapter 7 proceeding.  Chapter 13 does not automatically call for the sale of your assets so that your creditors get paid.  Instead, a Chapter 13 proceeding attempts to work out and renegotiate your debts and liabilities in a reorganization plan.  A Chapter 13 bankruptcy filing requires you to submit a payment plan acceptable to your creditors.  Filing for Chapter 13 bankruptcy in Arizona requires the debtor to:

  • Identify your unsecured debts, which must be less than $360,475
  • Identify your secured debts which must be less than $1,081,475
  • Provide the court with a list of all your creditors and the amount of their claims
  • Identify who provides your income and how frequently you receive it
  • Provide a schedule of assets
  • Provide a monthly budget

Before filing either Chapter 7 or Chapter 13 bankruptcy in Arizona, a debtor should contact an attorney experienced in both areas to get advice on the best option to use.

Arizona Bankruptcy Filing

The bankruptcy law firm of Clint W. Smith, P.C. can help.  Contact our Mesa, Arizona office at 480-807-9300 or toll free at 877-290-9493.  Our firm serves the surrounding areas of Chandler, Tempe, Gilbert, Scottsdale, and Mesa in Arizona.