In Arizona, debtors file Chapter 13 bankruptcy in fear of creditors’ harassment and to get debt relief. By filing chapter 13 they ward off any possibility of home foreclosure and car repossession. Chapter 13 is a very widely popular option for bankruptcy filer who gets the benefit of paying back their due debt through an extended period of time. Unlike chapter 7, here, debtors don’t need to fear about losing their dear property. If the debtor has a consistent flow of income to pay off his debt, he can get an approval for filing Chapter 13 Bankruptcy in Arizona. It is filled as a petition in the Federal court and the proceeding is conducted as per U.S bankruptcy law.
In Arizona, a debtor must fulfill some eligibility criteria for filing Chapter 13 Bankruptcy. If you have filed bankruptcy sometime in the previous years and had your petition dismissed by the court, you are most likely to forfeit the chance of filing it again. If it is dismissed, the automatic stay order will be lifted by the court. According to bankruptcy law, as soon as a debtor files bankruptcy, an automatic stay order is imposed upon the property of the debtor, preventing the creditors to collect their debt from the property. However, with the dismissal of the petition, his property will face the exposure of foreclosure. In this situation, if the debtor can issue an emergency case, the automatic stay order could continue to take effect on the property.
Recently, new laws enforce that a debtor must go through a financial management course in order to get certified that his debt is entitled to be discharged. This course must be certified by the court. Then the debtor has to file a completion certificate form in order to be granted debt discharge through chapter 13 Bankruptcy. In case his appeal is dismissed, he needs to file it again and pay certain fees for it.
To get an approval one needs to produce many documents from Social Security Number to creditors’ mailing lists to debt counseling certificate of official form. Along with this a debtor is obligated to furnish an array of documents and proofs. For example, he has to file all the schedules that he obtained from the court, his monthly income, disposable income and financial statement. All these documents and proofs will come to use while you file Chapter 13 Bankruptcy in Arizona.