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Bankruptcy FAQs | Family Law FAQs

Frequently Asked Bankruptcy Questions

The following Frequently Asked Questions (FAQs) deal with bankruptcy law in Arizona.  We encourage you to read our Disclaimer, before relying on any of these materials.

How much does it cost to do a bankruptcy?

We don’t know how much it will cost until we have an opportunity to review your situation and assess what legal steps need to be taken. The cost of a chapter 7 and a chapter 13 are different, as they are different kinds of bankruptcies. You are a unique person and the services that you require are similarly unique. It is unfair to assume that we know all about your situation without talking to you. Generally speaking, the filing fee for a Chapter 7 (liquidation) is $209.00 and the filing fee for a Chapter 13 is $185.00. This is the fee to the Court. The costs of your bankruptcy depends on what your specific needs are.

What is the difference between a Chapter 7 and Chapter 13?

A Chapter 7 bankruptcy is a “straight liquidation”. In a Chapter 7 Bankruptcy, you will not be required to submit monthly payments to the Trustee. Your debts will be discharged. A Chapter 13 bankruptcy is a “wage earner reorganization” and you will be required to submit a monthly payment to the Trustee for a period of time. These payments are applied to the debts incurred before you filed the Chapter 13. For many Chapter 13 bankruptcies, the amount paid to the creditors is greatly reduced from the amount owed.

Can I discharge my student loans?

Generally speaking, unless you demonstrate a hardship, student loans are non-dischargeable.

Will I loose my house if I file for bankruptcy?

Not necessarily. If you are current in your house payments, you need not lose your house in a Chapter 7 Bankruptcy. If you are contemplating bankruptcy filing, you need to tell the attorney if you are behind in the payments as it is important information to the attorney.

How much time does it take to file for bankruptcy?

Generally speaking for a normal Chapter 7 bankruptcy, the process takes about six months. However, most of the activity on your bankruptcy will take place in the first couple of months after you file.

How soon after I see you can I file?

Our office makes every attempt to file bankruptcies soon after we are retained. Sometimes there are circumstances that require immediate action, and we are now able to file via the ECF (electronic case filing) system.

Can I discharge Taxes?

This is a complicated question. For most taxes owed, they are not dischargeable in a Chapter 7. However, it may be possible to use a Chapter 13 to pay tax debts to the government. Whether this is true for your situation is something that the Attorney will need to discuss with you in detail. Every situation is unique, and it is unfair to generalize.

Is child support dischargeable?

No per 11 U.S.C. §523 (a) (5)

Is spousal maintenance dischargeable?

No, so long as it is spousal maintenance, (there is no alimony in Arizona) it is not dischargeable. 11 U.S.C. §523 (a) (5)

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