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Arizona
Arizona
Bankruptcy > For Debtors > Eligibility for Bankruptcy


Who Can File Bankruptcy?

Individuals who have lived in Arizona for at least 91 days prior to filing their bankruptcy case may file in the State of Arizona.  If an individual filing for bankruptcy has not lived in the State of Arizona for the 2 years prior to filing bankruptcy, the individual will be required to use the exemptions for certain property from the state where the individual lived before moving to Arizona.  If an individual has lived in Arizona for the 2 years prior to filing for bankruptcy, the individual may use the exemptions allowed under Arizona state law to exempt the individual’s property listed in the bankruptcy case.

  
Can I file bankruptcy without my spouse?

In some cases, individuals may file bankruptcy without their spouses, but is generally unwise and will not fully resolve the couple’s financial issues.  Arizona is a community property state which means that either spouse can sign a contract while married and both spouses are required to pay the debt regardless of whose name is specifically on the contract.  If a spouse has operated a business as a sole proprietorship (not a corporation or LLC), it is considered to be the business of both spouses regardless of whether or not the other spouse had anything to do with the business.  If one spouse files for bankruptcy, creditors may still proceed against the non-filing spouse for collection of debt.  In addition, the spouse filing for bankruptcy will have to declare all income (including that of the non-filing spouse) and might end up in a Chapter 13 bankruptcy case when if both spouses were filing for bankruptcy, they might qualify for a Chapter 7 bankruptcy.

  
 
Disclaimer
The information provided in this website is meant only as a general description of the current laws as of the date of the writing. It is not meant to be an exhaustive discussion of all the nuances of the law and is intended to be only an overview. Many issues may appear simpler than they are, and an individual should always contact an attorney to obtain a complete, accurate interpretation of the law given the individual's particular circumstances. Thompson Law Group, P.C. makes no representations as to how the law would affect a particular situation and intends only to illustrate areas of concern and give general information.

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