Arizona Bankruptcy

In Arizona, bankruptcy is a legal process through which individuals or businesses can obtain relief from their financial obligations. This legal process is exclusively conducted in a federal court, while there are some state-specific rules.

In Arizona, you must use the state’s exemption scheme (rather than the federal exemption list) for residents who have lived in Arizona continuously for at least two years.

How to File Bankruptcy in Arizona

Here is a practical roadmap for Arizona filers to follow during bankruptcy cases. You must complete a court-approved credit-counseling course within 180 days before filing. Then gather the necessary financial documentation, including recent tax returns, income statements, six-month bank statements, lists of assets and debts, vehicle titles, and real estate documents. It is pertinent that you pick the appropriate chapter (7, 13, or 11) and determine which exemption scheme applies to your case.

Prepare and file your petition and schedules (with the appropriate court form) with the District of Arizona. You must pay the filing fee or request a fee waiver/installment plan. It is compulsory for you to attend the meeting of all creditors (Section 341 meeting) and submit the required ID and paperwork.

Finally, you must complete the post-filing debtor-education course, respond to any trustee or court requests, and await discharge (or plan completion).

Arizona Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Each chapter has its purpose and different exemption rules, so individuals or businesses must make the correct choice.

Chapter 7 (Liquidation)

This chapter is suitable for individuals with limited income and high unsecured debt who want a fresh start. It allows you to sell your non-exempt assets to repay creditors. Your choice of exemption scheme will determine which assets you retain.

Chapter 13 (Repayment Plan for Individuals)

This chapter is an excellent choice for individuals with regular income to reorganize and repay debt over three to five years. Your plan payments may be affected by non-exempt assets (based on Arizona’s exemption limits).

Chapter 11 (Business Reorganization)

Chapter 11 is primarily used by businesses or individuals with complex debt profiles who wish to continue operations. There are Local Rules for Bankruptcy Procedure that govern the rules and forms for this chapter. The state exemption scheme still applies to this chapter if personal assets are involved in the case.

Step in Filing For Bankruptcy in Arizona

This is a simplified checklist you can use to file for bankruptcy in Arizona:

• Complete credit-counseling course
• Collect financial documents, including income, taxes, assets, and debts
• Choose an appropriate chapter & determine the applicable exemption scheme
• File the petition and schedules with the court
• Pay filing fee (or request waiver/instalments)
• Attend the 341 meeting of creditors
• Complete debtor-education course post-filing
• Respond to trustee/court notices until discharge or plan completion

Arizona Bankruptcy Court & Access to Records

Here is a section that explains where you can file in Arizona and how to access information.

Court Locations

The District of Arizona: The court district has its main division in Phoenix. The court has additional divisions at Tucson, Yuma, Flagstaff, and Bullhead City. The main courthouse of the United States Bankruptcy Court for the District of Arizona is:

Record Access

In Arizona, bankruptcy case records are available at the District of Arizona federal courthouse. Individuals may access court records from home through the Public Access to Court Electronic Records (PACER) system. They must pay a $0.10 fee to search and view the court case files.

Individuals may access case information through the Voice Case Information System (VCIS) by calling (866) 222-8029 from any touch-tone phone. They may find details such as the case number, name of debtors, filing date, chapter, trustee (if any), case status, debtor attorney, date, and time of 341 meeting, judge, trustee, and discharge and closing date.

For further details regarding a case, an individual may visit the clerk's office between 8:30 am and 4:00 pm, Monday through Friday, to make inquiries.

Moreover, anyone may visit the courthouse in person during regular office hours on weekdays to view case documents. Public access computers are available for use, at no charge, in the Records Section of the Clerk's Office. Anyone may view or print the bankruptcy documents, but there is a fee per page for printing and copy services.