Find a Bankruptcy Lawyer in Avondale, Arizona

Avondale Bankruptcy Lawyers, AZ

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In Avondale, Arizona, bankruptcy is a court procedure in which a person or business has some or all of their debts cleared (or "discharged"), theoretically allowing them to begin with a clean slate, and move on with their lives no longer drowning in debt (and hopefully having learned to better manage their use of credit in the process). Of course, one should never view bankruptcy as a "get out of debt free" card, allowing someone to be absolved of their requirement to pay their debts just because they don't want to. It is meant to serve as a lifeline, preventing uncontrollable debt from resulting in complete financial ruin. Accordingly, it is best treated as an option of last resort, because it can carry with it significant negative consequences, which must be weighed against the possible benefits. For example, filing for bankruptcy can heavily damage a person's credit rating.

Accordingly, it might be a good idea to consult with a Avondale, Arizona bankruptcy attorney. Your lawyer will be able to counsel you about your options, including alternatives to bankruptcy, if such alternatives exist in your case. Whatever the result, it is often hard to predict the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Avondale could prove invaluable.

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Types of Bankruptcy in Avondale, Arizona

In Avondale, Arizona, there are three basic bankruptcy schemes that are most often used. They are recognized as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Avondale, Arizona will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

Under Chapter 13 bankruptcy in Avondale, most of the debtor's debt is not discharged. Instead, the bankruptcy court, working with the debtor and participating creditors, work out a payment plan that allows the debtor to pay off most of his or her debts over a prolonged period of time, thus theoretically making the debt far more manageable. Once a payment plan is approved by the court, creditors are prohibited from attempting to collect payment under their original agreements that gave rise to the debt in the first place. Though Chapter 11 bankruptcy can be used by individuals, it is almost always used by businesses. Similar to Chapter 13, Chapter 11 involves restructuring of debts, rather than complete discharge. The debtor is required to come up with a restructuring plan that lays out how it plans to cut costs, streamline operations, and pay its debts. The plan must then be authorized by a vote of participating creditors.

One advantage of Chapter 11 bankruptcy is that it allows a business going through it to continue operating, and to trade its stock.

How Can a Avondale Bankruptcy Lawyer Help?

The need to consider all the options and consider the costs and benefits of applying for bankruptcy in Avondale cannot be overstated. If you are considering filing for bankruptcy, it would be a good idea to speak with a Avondale bankruptcy attorney beforehand.

44 Bankruptcy, Banking and Credit cases posted to LegalMatch lawyers in Avondale

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Life in Avondale

Avondale is very near Phoenix, Arizona, located in Maricopa County.  It is very well noted for being home to the Phoenix International Raceway, a fun and famous auto-racing facility!

Being near Phoenix, Avondale residents have access to some very well-known law firms of all sizes.  Phoenix is home to many large, mid-size, and small law firms that are home to many competent attorneys.  Many of these attorneys have been educated at the top-tier University of Arizona Law School.  Therefore, many lawyers working in Phoenix have a connection to Arizona and its residents.  Avondale citizens can therefore enjoy personalized legal service from attorneys who care about their home.

Some famous residents of Avonda include Craig Mabbitt, Nick Harris, Clancy Pendergast, Raymond Shuey, and Everson Griffen. 

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