The state of Arizona requires any consumer who wishes to file for bankruptcy to pass a means test. The means test required for bankruptcy cases determine whether or not the consumer’s income is above or below the median for the county in which they live. The median income for anyone who wishes to file Chapter 7 in Casa Grande AZ is $38,298. To qualify for this form of bankruptcy the consumer’s income should fall below this average.
Qualifying for Chapter 7 Attorneys review the income records for all consumers who file for this form of bankruptcy. They must possess an income level that qualifies them to begin this process. Next, the consumer should possess assets that will generate an adequate amount of proceeds to settle their debts. Distinctions are made by the calculation at which the attorney arrives after examining the consumer’s income. The consumer must present deeds for properties and assets to the attorney. An appraiser can offer an overall value for each item owned. This represents the current market value in which it is probable for the consumer to receive after its sale.
How Does it Work? The bankruptcy court calculates an overall value for the consumer’s debts. This value does not include any debts that were discharged by the judge. The court assigns a trustee to oversee the sale of each property and asset. This trustee coordinates these sales and distributes the proceeds to the creditor. The process requires approximately three to six months to complete. The judge will discharge debts in which the creditor has already received payment through their insurance. When accounts such as credit cards are charged off, they file a loss with their insurance carrier. In most cases, they recover most if not all the total value owed by the creditor. Bankruptcy judges, typically, discharge these debts for this reason. However, debts such as student loans that were provided by a government program are not eligible for discharge. Cases such as Chapter 7 in Casa Grande AZ require clear income records from the consumer. He or she should provide records of all sources of income in the beginning of their case. Any discovery by the court of unreported income sources could cause a delay in approving or complete dismissal of their case. If you wish to file for bankruptcy, you can Click Here for further details.