There are several reasons you might need to file bankruptcy – maybe you have unexpected medical bills, overwhelming credit card debt, or your household income has suddenly decreased and you fell behind on your mortgage – but how do you know which chapter of the Bankruptcy Code to file under? For individual consumers, a Chapter 7 or a Chapter 13 bankruptcy are the most common chapters, and various factors must be considered in determining the correct chapter.  A Chapter 7 bankruptcy is the quickest way to receive a discharge, usually about four (4) months after filing a petition, and will eliminate most of your unsecured debt, such as credit cards and medical bills. However, you must be eligible to file a Chapter 7 bankruptcy. First, you must not have received a discharge in another Chapter 7 bankruptcy filed in the previous eight (8) years, or in a Chapter 13 bankruptcy filed in the previous six (6) years. Second, your household income must fall below the median income for the same household size in the state you reside. In Arizona, the current median income for a household of one is $46,779, and increases for every additional member of the household. If   Read more…