Find a Bankruptcy Lawyer in Tucson, Arizona
In Tucson, Arizona, bankruptcy is a court procedure in which a person or business has some or all of their debts excused (or "discharged"), theoretically allowing them to start 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 relieved 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 Tucson, 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 difficult to foresee the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Tucson could prove invaluable.
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Types of Bankruptcy in Tucson, Arizona
In Tucson, Arizona, there are 3 types of bankruptcy in common use: Chapter 7, Chapter 13, and Chapter 11. Because bankruptcy is a result of federal law, the procedures governing bankruptcy in Tucson, Arizona will be similar everywhere else in the U.S. 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 totally 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.
The other form of bankruptcy most commonly used in Tucson is Chapter 13. It allows a person to pay off their debt over a longer period of time, often consolidating it into one periodic payment. In this system, the amount of money the debtor owes is not actually reduced, but the payment of the debt is made far more manageable. This gives the debtor some breathing room, allowing him to continue to earn a living while slowly paying down his debts, and gives some security to creditors that they will eventually collect all or most of what they're owed. Though available to individuals, Chapter 11 bankruptcy is mostly used by businesses. Like Chapter 13, Chapter 11 requires the restructuring of debts. Under this system, the debtor must come up with a plan to reduce debt, cut costs, and improve operations. Once this plan is proposed, it is submitted to the participating creditors, who must approve it by a majority vote before it can be implemented.
While going through Chapter 11 bankruptcy, a business can continue operating, and its stock can continue to be traded.
How Can a Tucson Bankruptcy Lawyer Help?
The need to weigh all the options and consider the costs and benefits of applying for bankruptcy in Tucson cannot be overstated. If you are considering filing for bankruptcy, it would be a good idea to speak with a Tucson bankruptcy attorney beforehand.
Bankruptcy Attorneys in the Largest AZ Cities
Life in TucsonTucson is a major city in Arizona and the county seat of Pima County. With a population of about 548,000, it is the second largest city in Arizona after Phoenix. Tucson is just over 100 miles from Phoenix and about an hour away from the U.S.-Mexico Border.
Often called "The Old Pueblo", Tucson is an attractive mix of traditional southwestern culture and modern innovations. The downtown area of Tucson has retained much of its historic southwest feel. Several downtown buildings such as the Hotel Congress and the Art Deco Fox Theater were constructed in the 1920's. Midtown Tucson also draws many visitors to the city. For example, the University of Arizona is located in midtown, which includes Arizona Stadium as well as the McKale Center.
The tourism industry fuels much of Tucson's economy, with some 3.5 million visitors bringing in over $2 billion a year. Tucson's warm climate attracts many "snowbirds", or winter visitors who often purchase a second home in the city. Popular events for tourists include the Tucson Gem & Mineral Show and the Tucson Folk Festival.
Lawyers in Tucson, Arizona handle most of their cases at the Tucson City Court. Tucson lawyers are available to help you understand the many laws that are unique to the state of Arizona.