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What Is Bankruptcy? | Tucson, AZ Bankruptcy Attorney | Mesa, AZ Bankruptcy Lawyer

Tucson AZ Bankruptcy Attorney

What is bankruptcy?  It is the legal procedure that allows individuals, businesses, and other organizations to get relief from burdensome debts, either by modifying the repayment schedule, reducing the debt, or eliminating it altogether. Precisely what kind of relief is available with respect to a particular debt depends on the nature of the debt (e.g. is it a secured debt like a mortgage, or unsecured debt like a credit card balance), the type of bankruptcy, and several other factors that vary based on individual circumstances.

Bankruptcy law is federal law, and is provided for in the United States Constitution, Article 1, Section 8. A bankruptcy case is filed in a United States Bankruptcy court.

The Objectives of Bankruptcy

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The two main objectives of consumer bankruptcy are to give the debtor a fresh start, and to pay creditors as much as possible without unduly burdening the debtor.

The first of these objectives is accomplished through the bankruptcy discharge, which releases the debtor from personal liability for specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.

The second objective is accomplished by the automatic stay, which prevents most creditors from taking any action to collect a debt once a bankruptcy is filed, and by the bankruptcy laws and rules that lay out how much of a debtor’s property may be taken by creditors, and in what order the creditors get paid.

Types of Consumer Bankruptcy

There are two main types of consumer bankruptcy:

Business Bankruptcy

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Business bankruptcy serves one of two purposes. It allows businesses undergoing temporary financial struggles, but wishing to continue operating, to effectively reorganize by restructuring and modifying their debts, thus preserving the business’s going concern value.

For businesses wishing to wind up their operations, business bankruptcy allows for an orderly liquidation, with the business owners retaining primary control over the timing and disposition of the business’s assets. Business bankruptcy cases are primarily filed under Chapter 11 – Business Reorganization.

[What is bankruptcy]

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Tucson Location
Yusufov Law Firm PLLC
5151 E. Broadway Blvd, Suite 1600
Tucson, AZ 85711

Phone: (520) 745-4429
Email: info@yusufovlaw.com

Mesa/Phoenix Location
Yusufov Law Firm PLLC
2266 South Dobson Road, Suite 200
Mesa, AZ 85202
Phone: (480) 788-0098
Email: info@yusufovlaw.com

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To discuss your financial situation and learn more about your debt relief options, give us a call at (520) 745-4429 or (480) 788-0098 or contact us via our website to schedule a free consultation.

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We represent clients throughout Mesa, greater Phoenix area, Tucson, and Southern Arizona, including Maricopa, Pima, Pinal, Santa Cruz, Cochise, Graham, and Greenlee counties.

Disclaimer: Submitting information through this website or via e-mail does not create an attorney-client relationship, and the information submitted will not be confidential, privileged, or otherwise protected. Please do not submit any confidential or sensitive through this website or via e-mail until you have spoken to an attorney from our firm either by telephone or in person.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. The material and information contained on these pages and any pages linked to from these pages is intended to provide general information only and not legal advice. You should consult with an attorney licensed to practice in your jurisdiction before relying on any of the information presented here. You are advised that the acts of sending e-mail to or viewing or downloading information from this website does not constitute an attorney-client relationship.

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