How to File Bankruptcy in Arizona: A Step-by-Step Guide (2026)

Filing bankruptcy in Arizona can eliminate overwhelming debt and give you a fresh financial start—but the process requires careful preparation and adherence to specific legal requirements.

Whether you're considering Chapter 7 liquidation or Chapter 13 reorganization, understanding the Arizona bankruptcy filing process helps you avoid costly mistakes and achieve the best possible outcome. This guide walks you through every step, from determining eligibility to receiving your discharge.

Chapter 7 vs. Chapter 13: Which Is Right for You?

Before filing, you must understand the two main types of personal bankruptcy:

Chapter 7 Bankruptcy (Liquidation)

Best for: People with limited income who cannot repay their debts

• Timeline: 3–4 months from filing to discharge
• Debt discharge: Most unsecured debts eliminated (credit cards, medical bills, personal loans)
• Asset impact: Non-exempt property may be sold (most filers keep everything)
• Income requirement: Must pass the Arizona Means Test

Chapter 13 Bankruptcy (Reorganization)

Best for: People with regular income who want to protect assets or catch up on payments

• Timeline: 3–5 years (36–60 monthly payments)
• Debt discharge: Remaining unsecured debts eliminated after completing payments
• Asset impact: Keep all property while catching up on mortgage, car, or tax payments
• Income requirement: Sufficient disposable income to fund repayment plan

Step 1: Determine Your Eligibility

Arizona Means Test for Chapter 7

To qualify for Chapter 7, your income must be below the Arizona median for your household size:

2026 Arizona Median Income:

| Household Size | Monthly Income | Annual Income | |----------------|----------------|---------------| | 1 person | $4,975 | $59,700 | | 2 people | $6,392 | $76,704 | | 3 people | $7,175 | $86,100 | | 4 people | $8,158 | $97,896 | | 5+ people | Add $9,000 per additional person |

If your income is above median: You may still qualify by passing the full Means Test, which deducts allowable expenses from your income.

Chapter 13 Requirements

• Regular income sufficient to fund a repayment plan
• Debt limits: Secured debt under $2,750,000; unsecured debt under $465,275
• Completed credit counseling within 180 days before filing

Step 2: Complete Credit Counseling (Required)

Federal law requires credit counseling from an approved agency within 180 days before filing.

Approved Arizona Credit Counseling Agencies

| Agency | Phone | Cost | |--------|-------|------| | Take Charge America | (602) 389-6105 | $0–$50 (fee waivers available) | | Clearpoint Credit Counseling | (800) 750-2227 | $0–$50 | | Money Management International | (866) 889-9347 | $0–$50 |

What to expect:

• 60–90 minute session (online, phone, or in-person)
• Review of your income, expenses, and debts
• Discussion of bankruptcy alternatives
• Certificate of completion (required for filing)

Step 3: Gather Required Documents

Having complete documentation ready speeds up the filing process and prevents delays.

Financial Documents

• Tax returns: Last 2 years of federal tax returns
• Pay stubs: Last 6 months of income documentation
• Bank statements: Last 6 months for all accounts
• Retirement accounts: 401(k), IRA, pension statements
• Investment accounts: Stocks, bonds, mutual funds

Debt Documentation

• Creditor list: Names, addresses, account numbers, balances
• Collection notices: Recent letters from debt collectors
• Lawsuit documents: Any pending legal actions
• Credit report: Recent copy from all three bureaus

Asset Documentation

• Property deeds: Real estate ownership documents
• Vehicle titles: Cars, trucks, motorcycles, RVs
• Insurance policies: Life, auto, homeowners
• Personal property inventory: Major items (jewelry, electronics, collectibles)

Step 4: Complete Bankruptcy Forms

Required Forms for All Filings

1. Voluntary Petition (Form 101): Basic case information
2. Schedules A/B: All property and assets
3. Schedule C: Property exemptions (Arizona exemptions)
4. Schedule D: Secured creditors (mortgage, car loans)
5. Schedule E/F: Unsecured creditors (credit cards, medical)
6. Schedule G: Executory contracts and leases
7. Schedule H: Co-debtors
8. Schedule I: Current income
9. Schedule J: Current expenses
10. Statement of Financial Affairs: Financial history
11. Means Test (Form 122A): Chapter 7 eligibility

Chapter 13 Additional Forms

• Chapter 13 Plan: Proposed 3–5 year repayment schedule
• Form 122C: Chapter 13 disposable income calculation

Step 5: File with the Arizona Bankruptcy Court

Filing Fees (2026)

| Filing Type | Fee | |-------------|-----| | Chapter 7 | $338 | | Chapter 13 | $313 | | Fee waiver | Available for income below 150% federal poverty level | | Installment payments | Available (up to 4 payments) |

Arizona Bankruptcy Court Locations

Phoenix Division:

• Address: 230 N 1st Ave, Suite 101, Phoenix, AZ 85003
• Phone: (602) 682-4000
• Counties: Maricopa, Yuma, La Paz, Mohave

Tucson Division:

• Address: 38 S Scott Ave, Tucson, AZ 85701
• Phone: (520) 205-4200
• Counties: Pima, Cochise, Santa Cruz, Pinal, Graham, Greenlee

Electronic Filing: Attorneys and self-represented filers can file through the court's CM/ECF system at https://ecf.azb.uscourts.gov

Step 6: Automatic Stay Protection

The moment you file, the automatic stay goes into effect. This court order immediately:

• ✅ Stops wage garnishment
• ✅ Stops foreclosure proceedings
• ✅ Stops vehicle repossession
• ✅ Halts creditor lawsuits
• ✅ Stops collection calls and letters
• ✅ Prevents utility disconnections

Important: Creditors must be notified of your filing. Your attorney (or you, if pro se) sends notices to all creditors listed in your petition.

Step 7: 341 Meeting of Creditors

What to Expect

Every bankruptcy filer must attend a 341 Meeting of Creditors, typically held 20–40 days after filing.

Location: Bankruptcy courthouse or by phone/video conference Duration: 5–15 minutes Attendees: You, your attorney (if represented), the bankruptcy trustee

Common Trustee Questions

1. Did you review and sign all documents?
2. Are all assets and debts listed accurately?
3. Have you transferred any property in the last 2 years?
4. Do you expect any inheritance, lawsuit settlements, or tax refunds?
5. Is your income documentation complete?

Required documents to bring:

• Government-issued photo ID
• Social Security card (or proof of SSN)
• Most recent pay stub
• Bank statements (if not already filed)

Step 8: Complete Debtor Education (Required)

Before receiving your discharge, you must complete a debtor education course.

This 2-hour course covers:

• Budgeting and money management
• Using credit responsibly
• Rebuilding credit after bankruptcy
• Avoiding future financial problems

Cost: $5–$50 (fee waivers available) Same agencies: Can be completed through your credit counseling provider

Step 9: Chapter 7: Asset Review and Discharge

No-Asset Cases (Majority of Filings)

If the trustee determines you have no non-exempt assets:

• No property is sold
• Creditors receive no distribution
• Discharge typically issued 60–90 days after 341 meeting

Asset Cases (Less Common)

If you have non-exempt assets:

• Trustee may sell property to pay creditors
• You may have option to "buy back" assets by paying trustee exempt value
• Discharge issued after asset administration complete

Step 9 (Chapter 13): Plan Confirmation and Payments

Plan Confirmation Hearing

• Held approximately 30–45 days after 341 meeting
• Judge reviews your proposed repayment plan
• Trustee and creditors may object to plan terms
• Modifications may be required before confirmation

Making Plan Payments

• First payment due: 30 days after filing (even before confirmation)
• Payment method: Payroll deduction recommended, or direct payment to trustee
• Trustee: Ann L. Cipriani (Phoenix) or Frank J. Lorkovic (Tucson)
• Address payments to: Chapter 13 Trustee, P.O. Box [varies by division]

Completing Your Plan

• Make all 36–60 monthly payments on time
• Report income changes to trustee (may require plan modification)
• Obtain court approval for new debt over $1,000
• File annual income/expense reports

Step 10: Receive Your Discharge

Chapter 7 Discharge

• Timeline: 3–4 months after filing
• What it covers: Most unsecured debts eliminated
• What remains: Student loans, recent taxes, child support, alimony, criminal fines

Chapter 13 Discharge

• Timeline: After completing all plan payments (3–5 years)
• Benefit: Broader discharge than Chapter 7 (may include some debts not dischargeable in 7)
• Certification: Trustee files certificate of plan completion with court

Timeline Summary

Costs of Filing Bankruptcy in Arizona

Court Fees

• Chapter 7: $338
• Chapter 13: $313

Attorney Fees (2026 Estimates)

| Service | Chapter 7 | Chapter 13 | |---------|-----------|------------| | Typical range | $1,000 – $3,500 | $2,500 – $6,000 | | Upfront payment | Usually required | Often part of plan | | Payment plans | Some attorneys offer | Built into Chapter 13 |

Additional Costs

• Credit counseling: $0–$50
• Debtor education: $5–$50
• Credit reports: $0–$45
• Document copies/postage: $20–$50

Common Mistakes to Avoid

Before Filing

• ❌ Racking up new debt: Charges within 90 days of filing may not be dischargeable
• ❌ Transferring assets: Can be seen as fraudulent and lead to case dismissal
• ❌ Paying off specific creditors: Preferential payments may be recovered by trustee
• ❌ Cashing out retirement: 401(k) and IRA accounts are protected in bankruptcy

During Filing

• ❌ Incomplete asset disclosure: Can result in denial of discharge
• ❌ Missing deadlines: Failure to complete debtor education delays discharge
• ❌ Hiding income: Must report all income sources, including side jobs

After Filing

• ❌ Ignoring plan payments (Chapter 13): Results in case dismissal
• ❌ Taking on new debt: Requires court approval in Chapter 13
• ❌ Missing creditor notifications: Ensure all creditors are listed in petition

Life After Bankruptcy in Arizona

Rebuilding Your Credit

Month 1–6:

• Review credit reports for accuracy (bankruptcy should be listed)
• Open a secured credit card ($200–$500 deposit)
• Pay all bills on time

Month 6–12:

• Credit score typically increases 50–100 points
• Consider credit-builder loan
• Become authorized user on family member's card

Year 1–2:

• Many people achieve 650+ credit scores
• Qualify for FHA mortgage (2 years after Chapter 7 discharge)
• Auto loan rates improve significantly

What You Can Do Immediately

• ✅ Open new bank accounts
• ✅ Apply for secured credit cards
• ✅ Rent an apartment (may require larger deposit)
• ✅ Obtain auto insurance
• ✅ Start emergency savings fund

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Last updated: February 14, 2026. This article is for informational purposes only and does not constitute legal advice. Consult a licensed Arizona bankruptcy attorney for guidance specific to your situation.