Phoenix Chapter 7 Bankruptcy
Bankruptcy Phoenix Basics
The most common type of consumer bankruptcy is chapter 7 bankruptcy. A Phoenix chapter 7 bankruptcy is sometimes referred to as a liquidation bankruptcy; however, for most people (especially those suffering from serious financial stress) most of their assets may be retained as “exempt” and not liquidated. Nevertheless “non-exempt” assets typically must be surrendered as part of the bankruptcy Phoenix process so that the bankruptcy trustee may sell them to pay creditors. The important thing is to remember that only non-exempt assets are required to be surrendered, and exempt assets may be retained.
For most people their cars, houses, and household goods are not required to be surrendered as part of the Phoenix chapter 7 bankruptcy process. However, a final determination of these facts can only be made on a case-by-case basis and you will need to discuss with an attorney your particular facts and circumstances to determine whether or not you have exempt or non-exempt assets.
Phoenix Chapter 7 Bankruptcy and Debts
There are generally four classes of debts that are not dischargeable as part of a Phoenix chapter 7 bankruptcy. These non-dischargeable debts include:
- Student loans
- Back taxes
- Alimony
- Child support
- Criminal fines and sanctions.
For most people the majority of their debts are dischargeable. These types of debts include unsecured debt such as:
- Credit card debt
- Medical bills
- Civil judgments
For certain people debt relief includes unburdening themselves of some secured debt that they can no longer afford such as expensive cars or house payments. In consultation with your attorney you can determine if the surrender of certain assets and their associated debts will improve your post bankruptcy financial life.
Bankruptcy in Phoenix Help
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