File bankruptcy arizona

Each state has different laws and regulations that dictate every step of the repossession process from start to finish. This page will provide an overview of Arizona's Repossession Laws and what you should know if you've fallen behind on car payments. Written by Upsolve Team. Updated January 5, When you buy a car with a loan, you normally give the creditor a security interest in the car, which gives them certain rights.

Car repossession laws allow a creditor to repossess a vehicle at any point after the borrower defaults on the loan. A default can result from one or more missed payments , or it can result from the borrower violating other terms of the loan agreement.

You can check your car loan contract to see exactly how it defines default. If possible, the best way to stop a potential repossession is by catching up on your loan payments. Call your lender or review your loan contract or lender notices to find out how long you have to make up missed payments.

This is preferable because mail can get delayed and some online payment portals make it difficult to pay on past-due accounts. Your lender may offer you a temporary forbearance, which pauses your payments for a short time.

They may also let you make a payment plan to catch up, or they may be able to change the loan terms or payment amount. With a Chapter 13 bankruptcy, you can structure a payment plan through the bankruptcy court to pay both your past-due and current payments. Car repossession laws allow a repo agent to take your car off the street or right out of your driveway. If the agent continues anyway, this could be considered breaching the peace.

You can present this as a defense to the repossession if you go to court. This fee may not be waived but you may be able to pay it in installments. Chapter 13 Requirements If you are filing a Chapter 13 bankruptcy, a proposed repayment plan must also be submitted. After reasonable monthly expenses have been paid, how much money will you have left over to put toward your outstanding bills? And how will this money be divvied up among those you owe? Priority claims such as taxes and back child support must be paid in full; unsecured debts like credit card debt and medical bills are usually paid in part.

Depending upon the judgments of those involved with your case, unsecured debts can be paid off for as little as 10 cents on the dollar.

In addition to the general requirements listed above, the repayment plan must pass each of the following three tests: 1 It must be delivered in good faith. Generally, this is the value of all the nonexempt property you own see Arizona bankruptcy exemptions. If you have filed Chapter 13, you must begin making your plan payments. Generally these payments will be withdrawn directly from your wages and you or your attorney should arrange with the court for these payments to be deducted from your wages.

Automatic Stay Once you have filed your paperwork with the bankruptcy court, an automatic stay immediately goes into effect. This provision prevents creditors from making direct contact with you or staking a claim on any of your property from the day of filing forward. This will stop any foreclosure proceedings. In exchange for dissolving all past due debts, the trustee of the bankruptcy will liquidate the assets, such as cars, homes, and other property of value in a Chapter 7 Bankruptcy proceeding.

The proceeds collected during liquidation will be used to repay debtors that were listed on the bankruptcy filing. If you have the means to pay some of your debts, a chapter 13 bankruptcy plan may work for you.

You will be allowed to keep your valuable assets over a 3- to 5-year period. In order to decide which chapter a person will file, he or she will have to determine their ability to repay under the Bankruptcy Means Test. The ultimate goal of the Bankruptcy Means Test is to determine who is eligible to apply for debt forgiveness through a Chapter 7 Bankruptcy.

It takes into account your:. If you do not qualify for Chapter 7 bankruptcy, you will be able to file for Chapter 13, as above-described. The federal bankruptcy exemptions are a list of exclusions by Congress that are available to filers in specific states.

These exemptions will determine what you are able to retain throughout and after Chapter 7. In a Chapter 13 situation, the exemptions will determine what amount you will have to pay certain financial institutions in your repayment plan.

Current laws do not require filers to hire a lawyer to declare bankruptcy relief. People are allowed to represent him or herself as a pro se debtor. You will simply contact the local bankruptcy court and obtain all forms and requirements directly through them. Filing alone is not an easy task.

A bankruptcy lawyer is there to represent you and not in the interest of creditors. An attorney is also accustomed with exemption laws.