Many Americans receive harassing phone calls and letters regularly from their creditors. If you are fed up with the harassment from your creditors, consider filing for bankruptcy. Filing for bankruptcy will give you the opportunity to be free from mounting debt, and obtain a fresh start. However, before you file for bankruptcy, you must determine whether you are eligible for bankruptcy. A bankruptcy attorney in Phoenix can help you determine your eligibility and whether filing for bankruptcy is right for you. In addition, an attorney will be able to explain the bankruptcy process to you, and help you achieve a bankruptcy discharge at the completion of your bankruptcy case.

One of the requirements before you file for bankruptcy is the completion of a pre-filing credit counseling session. During the credit counseling session, a counselor will explain other options that are available to you other than filing for bankruptcy. For example, during the session, you may discuss creating a reasonable monthly budget or debt consolidation to help you with your financial issues. Generally, the credit counseling session lasts around one hour and you will receive a certificate upon completion. Your bankruptcy attorney in Phoenix will file the certificate of completion along with your bankruptcy petition. You should be aware that the pre-filing credit counseling session must be completed within 180 days of the time that you file your bankruptcy petition. If you take the course 181 days before you file for bankruptcy, you will need to repeat the course, or you risk having your bankruptcy case dismissed by the bankruptcy court.

You and your bankruptcy attorney in Phoenix will also discuss whether you should file for Chapter 7 or Chapter 13 bankruptcy. To be eligible for Chapter 7 bankruptcy in Phoenix you must earn less than the current median income for the state of Arizona, or you must satisfy the means test. The means test is a calculation that evaluates your monthly disposable income, or the income you have remaining each month after you pay your necessary expenses. Generally, the greater the amount of disposable income you have remaining each month, the less likely you are to qualify for Chapter 7 bankruptcy.

However, if you do not qualify for Chapter 7 bankruptcy, you may still be eligible for Chapter 13 bankruptcy if you have regular and reliable income for at least 6 months prior to filing for bankruptcy. The income can come from any source including Social Security disability benefits or a pension. The most important characteristic of the income is that it is regular. In addition, Chapter 13 bankruptcy allows you to keep your assets, unlike a Chapter 7 liquidation proceeding. At the beginning of your Chapter 13 case, you and your bankruptcy attorney in Phoenix will create and submit a repayment plan to the bankruptcy court. The plan will take 3 to 5 years to complete, and you must make payments each month toward the plan to the Chapter 13 bankruptcy trustee. If you make all payments in full and on time each month, the bankruptcy court will grant a bankruptcy discharge at the completion of the plan.

In addition, whether you file for Chapter 7 or Chapter 13 bankruptcy, before you receive your bankruptcy discharge, you must complete a debtor education class. The debtor education class focuses on teaching you financial strategies that will assist you in creating a healthy financial future.

Filing for bankruptcy is an important decision. Therefore, if you are considering filing for bankruptcy, contact a bankruptcy attorney in Phoenix as soon as possible, or visit the U.S. Bankruptcy Court, District of Arizona website http://www.azb.uscourts.gov/. In addition to assisting you with your bankruptcy petition, an attorney can answer all of your questions that you may have about the bankruptcy procedure. If you are considering filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx for additional information regarding how to file for bankruptcy on your own.