Not all debts are treated the same in bankruptcy. Here is a complete guide to which debts can be eliminated and which survive for Phoenix residents.
Backed by collateral (mortgage, car loan). You must return the collateral or continue paying. Arizona exemptions protect: $250,000 homestead, $6,000 vehicle.
No collateral (credit cards, medical bills). Typically eliminated entirely in Chapter 7, or paid pennies on the dollar in Chapter 13.
In Chapter 13, all priority debts must be paid in full through your plan.
Most unsecured debts: credit card debt, medical bills, personal loans, utility bills, lease obligations, payday loans, and most lawsuit judgments.
Child support/alimony, most student loans, recent tax debts, debts from fraud, DUI injury judgments, criminal fines, and government penalties.
Yes. 100% dischargeable. However, luxury purchases over $800 within 90 days or cash advances over $1,100 within 70 days may be challenged.
If you surrender the vehicle, the remaining balance is dischargeable. If you keep the car, you continue paying. Arizona's vehicle exemption of $6,000 protects your equity.
Payday loans are generally dischargeable. Courts consistently reject lender arguments that they are non-dischargeable.
Yes, but payments to family within one year of filing may be recovered by the trustee as preferential transfers.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
Free Discharge Screener Means Test Guide