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Chapter 7 Bankruptcy state of Arizona starting

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    Chapter 7 Bankruptcy state of Arizona starting

    Good evening! I have combed through the site to find something similar and all of the information I have found is severely out of date in regards to Arizona. Any information would be a Godsend as we stress ourselves into the ground over this matter. So hence is the information bomb!

    Some general information that may be of use or possibly to much to soon is as follows.

    My household consists of myself, my wife and two daughters ages 5 and 1.

    We have 2 vehicles:

    2014 Nissan Altima approx value 10137 private party source kbb.com. Making car payments of 298 for 72 months and purchased February 2019
    2003 Chevorlet Avalanche approx value 6172. Clean and clear title
    No house or any other major assets.
    I am full time employeed at $40,000 yearly salary with variable bonus based off of store performance if assuming I achieve all would be approx $3,240 more a year.

    My wife is full time employeed at $43,000 yearly salary with quarterly bonus that can range from $0 to $1,000 paid quarterly for a max of $4,000.

    We have received a threatening email from Mark and Johnson LLC out of Utah on 2 collections from earlier in the year that is threatening judgement and wage garnishment. Letter was received about 7 days ago and is what spurred me to consider this option.

    General debt is as follows:

    $36,951 current credit card debt still current no missed payments only minor non recorded blips as we tread water.

    $35,349 mainly medical collections accounts from the birth of our daughters.

    $20,693 in non secured loans also current no missed payments.

    $12,914 car note secured against the Nissan Altima.

    General thoughts and concerns:

    We do not have health insurance but I plan to enroll through my employer for roughly $610 dollars a month as of the first of the year. I will be short term paying for this by adjusting my tax withholdings to better zero out and eliminate future massive refunds.
    We have a tax refund due first of the year from $3200 to $5100 that we historically get by end of February.
    Our housing arrangement is no contract paid to a family member via bank transfers for $480 a month due on the first of every month.

    We pay a family friend $250 bi weekly to provide child care. No documentation and is also a huge concern of mine in regards to how it would be viewed bankruptcy.

    We would like to keep both vehicles since they are required for our jobs to meet job expectations (bank deposits, meeting attendance)


    We are current on all obligations but if this judgement goes through the house of cards falls.

    With this information do you think we will be able to file chapter 7 and if so what pitfalls or concerns will we have? Once we get a bit of feed back we are going to pursue speaking to a local lawyer that I have researched that is nearby.

    Once more thank you anyone who takes time from their day to give us any feedback would be greatly appreciated.



    #2
    A quick online search showed 80,956 for a family of 4 to pass means test. You have a really low home/ rent payment. I think you will be filling a 13. Also in the 7 you will lose the tax return and the paid off car minus the AZ exemption , which I think is pretty low if I recall.

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      #3
      Actually vehicle is 6,000 that’s pretty good.

      Comment


        #4
        Current median income for a family of 4 in Arizona is $85,403.00 so you may be slightly over but should pass the means test. See:

        https://www.justice.gov/ust/eo/bapcp...come_table.htm

        Your vehicles are fine for a 7. Your tax refunds, unless received, cashed and spent before your file will go to the Trustee.

        The problem I see is whether or not your real budget (Schedules I and J) will show a lack of ability to pay creditors. Your rent is low and you only have the one vehicle payment.

        Your next step is to talk to an an attny. Initial consultations are free. Get several opinions and try to stay away from the mill operations.

        Des.

        Comment

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