Common Questions About Bankruptcy Attorneys

Question: Do I need an attorney?

Answer: While it is possible to file for bankruptcy on your own, having an attorney on your side can greatly benefit you. Bankruptcy can be a complex process, and an experienced attorney can help you navigate through it with ease.

Firstly, a lawyer can review your situation and advise you on which type of bankruptcy to file, or whether debt settlement is a better option. They can help you understand the pros and cons of each option and assist you in making an informed decision.

Furthermore, an attorney can assist you in filling out the necessary bankruptcy forms and paperwork, ensuring that everything is accurate and complete. Mistakes in the paperwork can lead to delays or even the dismissal of your bankruptcy case.

An attorney can also protect you from creditor harassment. Once you file for bankruptcy, creditors are legally required to stop all collection efforts, including phone calls and letters. If they continue to harass you, our attorneys can help you take legal action to stop them and enforce your rights under bankruptcy law.

Question: What is the difference between chapter 7 and chapter 11?

Answer: Chapter 7 and Chapter 11 are both chapters of the United States Bankruptcy Code that provide different options for individuals and businesses facing financial difficulties. The main difference between these two chapters is the purpose they serve and the type of bankruptcy they entail.

Chapter 7 Bankruptcy, also known as liquidation bankruptcy, is designed for individuals or businesses that have little or no income and cannot afford to repay their debts. In this process, a trustee is appointed to liquidate the debtor's non-exempt assets to repay creditors. Chapter 7 bankruptcy generally lasts 3-6 months and once the process is complete, most of the debtor's debts are discharged, meaning they are no longer responsible for them.

Chapter 11 Bankruptcy, also known as reorganization bankruptcy, is designed for businesses that want to continue operating while restructuring their debt. This process allows businesses to develop a plan to repay their debts over time while continuing to operate their business. In this type of bankruptcy, the debtor retains control of their business and develops a plan to repay their debts over a period of time, typically several years.

In summary, Chapter 7 is intended for individuals or businesses with little or no income and who cannot afford to repay their debts, while Chapter 11 is intended for businesses who want to continue operating while reorganizing their debt.

Facing a bankruptcy is daunting. We will make sure that you won't have to go at it alone. Call one of our Arizona Bankruptcy Lawyers today at 877.778.8957. We will help you with: Bankruptcy Defense, Chapter 7, Chapter 11, & Chapter 13.