Filing Chapter 7 Bankruptcy in Arizona: Will I qualify?

Thanks to the bankruptcy reforms of 2005, Arizona law will only apply to your bankruptcy case if you have lived in the state for the last two years. If you lived in Arizona for a shorter period of time, or recently moved, the state that you lived in for the 180-day period that preceded your move will likely apply to your Chapter 7 case.

Eligibility to file Chapter 7 is based on your income over the last six months. If you earn less than the median for a family of your size in Arizona, you have a green light to file for Chapter 7 bankruptcy.

When your income is below the state median, you automatically qualify. In cases where your income exceeds the Arizona median, you will need to subject your income and expenses to the means test, a government-derived formula that analyzes your disposable income. For a single filer, the Arizona median income is currently $46,779. For the most up-to-date means test income information, click here.

The ostensible purpose of the means test is to force those with enough “disposable” income to repay something to their creditors into Chapter 13 bankruptcy rather than the faster Chapter 7 process. Unfortunately, only some of your actual expenses will be allowed as the adoptions under the means test. In some cases, national averages are supplied in place of your actual out-of-pocket expenses. For example, there are limits on the amount that can be deducted for private school tuition.

Needless to say, the means test can get quite complicated. To ensure accuracy, it is best to determine Chapter 7 eligibility with the help of a qualified Arizona bankruptcy attorney.

Cost to file chapter 7 in Arizona

The chapter 7 filing fees in Arizona are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Arizona Bankruptcy Court Locations

The District of Arizona United States Bankruptcy Court has five locations. The first two listed below are for hearings only, and not for in-person filings.

Phoenix230 N. First Ave., Ste 101, Phoenix, AZ 85003, (602) 682-4000

Tucson: 38 S. Scott Ave., Ste 100, Tucson, AZ 85701, (520) 202-7500

Yuma98 W. First St., 2nd Floor, Yuma, AZ 85364, (602) 682-4000

Flagstaff: 123 N. San Francisco St., Flagstaff, AZ 86001, (602) 682-4000

Bullhead City2225 Trane Road, Bullhead City, AZ 86442, (602) 682-4000

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