Is it harder than it used to be to file an Arizona bankruptcy?
Welcome to my blog about Arizona Bankruptcy. I’d like to address this topic first! And by the way, you are already using the correct legal terminology …. You have heard correctly, but it is not impossible by any means. Most people who are thinking about filing have no trouble meeting the qualifications.
Think of your tax return: First you add up what you made in a year and then you deduct certain expenditures to arrive at the final number and this is the amount that the IRS taxes you on. Therefore, figuring out whether you qualify for bankruptcy requiresa very similiar calculation. We add up what you have made in the last six months and deduct certain expenditures, meaning those for housing, transportation and even health care. This little excercise in arithmetic is called a means test. It is meant to figure out whether you really have the means with which to pay your creditors or whether bankruptcy makes sense for you.
What if you miss the mark and make too much money even after all the subtractions have been taken? All is not lost. You could decide to file a different kind of bankruptcy – we’ll get to that later – or you can work with your attorney on some pre-bankruptcy planning. He or she can assess your situation to help you make the best decisions possible. Don’t let the system work you; ask your lawyer how to make the system work for you. That is, if you mean to file bankrupcy.
After all, bankruptcy in Arizona is not reserved for those who have no incomes and no assets. It is for people who have had a bad turn of luck, note the recent state of the economy. You are in good company…know what I mean?