Phoenix Bankruptcy Attorney: Chapter 7 & 13 Filing Guide for Maricopa County

When financial hardship strikes, finding the right Phoenix bankruptcy attorney can be the difference between continued stress and a fresh financial start. Maricopa County leads Arizona in bankruptcy filings, with over 8,000 cases filed annually in the Phoenix division alone. This comprehensive guide covers everything you need to know about filing bankruptcy in Phoenix — from choosing an attorney to understanding local court procedures.

Why Phoenix Residents File for Bankruptcy

Maricopa County's diverse economy means residents face varied financial challenges:

• Medical debt from Banner Health, HonorHealth, or Abrazo facilities
• Housing costs — Phoenix median home prices reached $450,000+ in 2025
• Business failures — Small business closures leave owners with debt
• Job loss — Tech sector layoffs and seasonal employment gaps
• Divorce — Legal fees and dual-household costs strain budgets

Phoenix Bankruptcy Filing Statistics (2024-2025)

| Metric | Phoenix/Maricopa County | Arizona Average | |--------|------------------------|-----------------| | Total annual filings | ~8,200 | ~12,500 | | Chapter 7 percentage | 68% | 65% | | Chapter 13 percentage | 31% | 34% | | Average household income of filers | $52,000 | $48,000 | | Most common debt type | Medical/credit cards | Credit cards |

Understanding Chapter 7 vs Chapter 13 in Phoenix

Chapter 7 Bankruptcy (Liquidation)

Best for: Phoenix residents with limited income and primarily unsecured debt

Key Benefits:

• Complete discharge of qualifying debts in 3-4 months
• Stop wage garnishment immediately
• Eliminate credit card balances, medical bills, personal loans
• No repayment plan required

Phoenix-Specific Considerations:

• The 341 Meeting of Creditors held at Phoenix courthouse or via phone
• Maricopa County median income for means test: $63,749 (single filer)
• Arizona exemption system protects $250,000 home equity

Qualification: Must pass the means test. Your household income must be below the median for your family size, OR you must have insufficient disposable income after allowed expenses.

Chapter 13 Bankruptcy (Reorganization)

Best for: Phoenix homeowners facing foreclosure or those with regular income above Chapter 7 limits

Key Benefits:

• Stop foreclosure and catch up on mortgage arrears over 3-5 years
• Reduce car payments through "cramdown"
• Pay a portion of debts based on disposable income
• Keep all assets while repaying creditors

Phoenix-Specific Considerations:

• Monthly payments made to Chapter 13 trustee
• Phoenix has a dedicated Chapter 13 trustee office
• Can remove second mortgages on underwater homes ("lien stripping")

Finding the Right Phoenix Bankruptcy Attorney

What to Look For

1. Arizona State Bar Certification

   • Board certification in bankruptcy law demonstrates specialized expertise
   • Only ~50 attorneys in Arizona hold this certification
   • Search: Arizona State Bar Certified Specialists

2. Local Phoenix Experience

   • Familiarity with Maricopa County trustees and judges
   • Knowledge of local creditor practices ( Banner Health, SRP, APS)
   • Understanding of Phoenix-area asset values

3. Fee Transparency

   • Chapter 7: $1,200 – $2,500 (flat fee typical)
   • Chapter 13: $3,500 – $5,500 (often includes most costs)
   • Payment plans available at most Phoenix firms
   • Avoid attorneys quoting under $1,000 — often cut corners

4. Free Consultations

   • 95% of Phoenix bankruptcy attorneys offer free initial consultations
   • Use this to assess communication style and expertise
   • Bring: pay stubs, tax returns, debt statements, asset documentation

Top-Rated Phoenix Bankruptcy Attorney Firms

Based on case volume, client reviews, and bar standing:

| Firm | Areas Served | Specialties | Est. Fees | |------|--------------|-------------|-----------| | Allen, Jones & Giles | Phoenix, Scottsdale, Mesa | Chapter 11, complex cases | $2,000+ | | My Arizona Lawyers | Valley-wide (5 offices) | High-volume Chapter 7 | $0 down plans | | Chapter Bankruptcy Lawyers | Tempe, Phoenix, Chandler | Emergency filings | $1,500+ | | Majors Law Group | Phoenix, Tucson, Prescott | Multi-state, PI crossover | $1,800+ | | Wright Law Offices | Phoenix metro, West Valley | Geographic coverage | $1,200+ |

Where to File Bankruptcy in Phoenix

U.S. Bankruptcy Court — Phoenix Division

Address: U.S. Bankruptcy Court District of Arizona 230 N First Avenue, Suite 104 Phoenix, AZ 85003

Contact:

• Phone: (602) 682-4000
• Hours: Monday–Friday, 8:00 AM – 4:00 PM
• Website

Parking:

• Street parking limited (metered)
• Multiple paid lots within 2 blocks
• Light Rail: Roosevelt/Central Avenue station (2 blocks)

Court Divisions

The Phoenix courthouse handles:

• All Maricopa County bankruptcy filings
• 341 Meetings of Creditors (for Phoenix-area filers)
• Trustee hearings and motions
• Adversary proceedings

The Phoenix Bankruptcy Filing Process

Step 1: Pre-Filing Requirements (1–2 weeks before)

Credit Counseling: Complete a pre-filing credit counseling course from an approved agency:

• Take Charge America (Phoenix-based, nonprofit)

  • Phone: (602) 389-6050
  • Online and in-person options
  • Cost: $25–$50 (waivers available)

• Money Management International

  • Online 24/7 availability
  • Same-day certificate delivery

Document Gathering:

• 6 months of pay stubs or income documentation
• 2 years of tax returns
• List of all debts (account numbers, balances, creditors)
• Vehicle titles and registration
• Real estate deeds and mortgage statements
• Bank statements (last 3 months)
• Retirement account statements

Step 2: File the Petition

Filing Fees:

• Chapter 7: $338 ($245 filing fee + $78 administrative fee + $15 trustee surcharge)
• Chapter 13: $313 ($235 filing fee + $78 administrative fee)
• Fee waivers available for income below 150% federal poverty guidelines
• Installment payment plans available

Automatic Stay: The moment your petition is filed, an automatic stay goes into effect:

• Stops all creditor calls and collection letters
• Halts wage garnishment
• Stops foreclosure proceedings
• Prevents utility disconnections
• Blocks repossession efforts

Step 3: 341 Meeting of Creditors (3–6 weeks after filing)

What to Expect:

• Held at Phoenix courthouse or conducted via phone
• Lasts 5–15 minutes
• Trustee asks questions under oath about your finances
• Creditors rarely attend (less than 5% of cases)

Common Trustee Questions:

• Did you review the petition before signing?
• Are all debts and assets listed accurately?
• Have you transferred any assets in the past 2 years?
• Is your income documentation complete?

Required Documents to Bring:

• Photo ID and Social Security card
• Recent pay stubs (if applicable)
• Updated bank statements
• Vehicle registration and insurance

Step 4: Discharge (Chapter 7) or Plan Confirmation (Chapter 13)

Chapter 7 Timeline:

• 341 Meeting: Week 3–6
• Creditor objection deadline: 60 days after 341 Meeting
• Discharge order: Typically 3–4 months from filing
• Case closure: Shortly after discharge

Chapter 13 Timeline:

• Plan confirmation hearing: 45–90 days after filing
• First trustee payment: Due 30 days after filing (and monthly thereafter)
• Plan completion: 36–60 months
• Discharge: After final payment and completion of debtor education

Arizona Exemptions: Protecting Your Assets

Arizona requires use of state exemptions — federal exemptions are NOT available.

Key Arizona Exemptions

| Asset Type | Exemption Amount | Notes | |------------|------------------|-------| | Homestead | $250,000 equity | Primary residence only | | Vehicle | $6,000 equity ($12,000 if disabled) | One vehicle per filer | | Household goods | $6,000 total | Furniture, appliances, electronics | | Tools of trade | $5,000 | Equipment for your profession | | Wedding rings | $2,000 | Higher if heirlooms | | Bank account cash | $300 | Wildcard exemption | | Life insurance | Full exemption | If beneficiary is family member | | Retirement accounts | Full exemption | 401(k), IRA, pension plans |

Phoenix Real Estate Market Considerations

With Phoenix home values appreciating rapidly, many homeowners have significant equity:

• Below exemption limit ($250,000 equity): Keep your home in Chapter 7
• Above exemption limit: Chapter 13 allows keeping home while paying excess equity to creditors
• Underwater homes: Consider Chapter 13 lien stripping for second mortgages

Life After Bankruptcy in Phoenix

Rebuilding Credit

Immediate Steps (0–6 months post-discharge):

1. Check credit reports — Ensure all discharged debts show $0 balance
2. Open a secured credit card — Deserve, Discover, or Capital One ($200–$500 deposit)
3. Become an authorized user — Piggyback on family member's good credit
4. Set up autopay — Never miss a payment going forward

Phoenix-Area Credit-Building Options:

• Arizona Federal Credit Union — Fresh start programs
• Desert Financial Credit Union — Secured cards and credit-builder loans
• OneAZ Credit Union — Second-chance banking

Timeline for Credit Recovery:

• Credit score increase: Begins 6–12 months post-discharge
• "Good" credit (700+): Achievable within 24–36 months
• FHA mortgage eligibility: 2 years after Chapter 7 discharge
• Conventional mortgage: 4 years after Chapter 7

Housing After Bankruptcy

Renting an Apartment:

• Most Phoenix landlords accept tenants 12+ months post-discharge
• Be prepared to show stable income and employment
• Offer larger security deposit if needed
• Consider smaller property management companies (more flexible than national chains)

Buying a Home:

• FHA loans: 2-year waiting period post-discharge
• VA loans: 2-year waiting period (for eligible veterans)
• Conventional loans: 4-year waiting period
• Portfolio lenders: May lend sooner with compensating factors

Common Phoenix Bankruptcy Mistakes to Avoid

1. Waiting too long to file

   • Draining retirement accounts (401(k) and IRA are fully protected)
   • Taking on new debt to pay old debt
   • Ignoring lawsuit summons

2. Transferring assets before filing

   • Selling assets to family members at below-market prices
   • Gifting money or property
   • The trustee can void transfers made within 2 years

3. Incurring new debt before filing

   • Credit card charges within 90 days may be non-dischargeable
   • Cash advances within 70 days
   • Luxury purchases flagged by trustees

4. Failing to list all creditors

   • Must include ALL debts, even those you want to pay
   • Intentional omission = potential fraud charges
   • Unlisted debts may not be discharged

5. Not attending the 341 Meeting

   • Failure to appear results in case dismissal
   • Rescheduling requires good cause and court approval

Phoenix Bankruptcy Alternatives

Before filing, consider these alternatives:

Debt Settlement

• Negotiate lump-sum payments for less than full balance
• Best for: Those with access to cash (tax refunds, family loans)
• Pros: Avoid bankruptcy on credit report
• Cons: Tax consequences on forgiven debt, credit damage

Debt Management Plan (DMP)

• Work with nonprofit credit counseling agency
• Consolidate payments, reduce interest rates
• Best for: Those with steady income who can repay in full
• Phoenix resource: Take Charge America (602-389-6050)

Selling Assets

• Sell non-exempt property to pay debts
• Best for: Those with valuable assets they don't need
• Consult attorney first — some sales can complicate bankruptcy

Is Bankruptcy Right for Your Phoenix Situation?

Consider bankruptcy if you:

• Owe more than $10,000 in unsecured debt
• Face wage garnishment (Arizona allows up to 25% of disposable income)
• Are behind on mortgage and facing foreclosure
• Cannot make minimum credit card payments
• Have medical debt from Phoenix-area hospitals
• Would need 5+ years to pay off debts, even with extreme budgeting

Bankruptcy may NOT be right if:

• Most debt is student loans (rarely dischargeable)
• Recent bankruptcy discharge (8-year waiting period for Chapter 7)
• You have significant non-exempt assets you want to keep

Free Legal Resources in Phoenix

Southern Arizona Legal Aid — Phoenix Office

• Phone: (602) 258-3434
• Services: Free bankruptcy assistance for low-income residents
• Income limits apply

Arizona Bar Foundation

• Website: azbarfoundation.org
• Resources: Self-help bankruptcy forms and guides

Maricopa County Public Law Library

• Address: 101 W Jefferson, Phoenix, AZ 85003
• Resources: Legal research assistance, form access

Arizona Bankruptcy Court Self-Help Center

• Phone: (602) 682-4000
• Resources: Pro se (self-representation) guidance

Take the Next Step

Bankruptcy is a significant decision with long-term implications. The right Phoenix bankruptcy attorney can guide you through the process, maximize asset protection, and ensure the best possible outcome.

Most Phoenix bankruptcy attorneys offer free consultations. During your consultation, the attorney will:

• Review your financial situation
• Explain Chapter 7 vs Chapter 13 options
• Identify exempt and non-exempt assets
• Provide a fee quote and payment plan options
• Answer questions about the process

Don't let financial stress control your life. A fresh start is possible, and thousands of Phoenix-area residents use bankruptcy protection each year to rebuild their financial future.

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This guide is for informational purposes only and does not constitute legal advice. Bankruptcy laws are complex, and outcomes depend on individual circumstances. Consult with a licensed Arizona bankruptcy attorney for advice specific to your situation.

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