How Often Do Bankruptcy Laws Change in Arizona?
When one files for bankruptcy, they get a fresh start by discharging or reorganizing their debts so that they have control of their finances. While bankruptcy is a term that sends chills into the hearts of many, the process can be a massive relief to many in debt. Bankruptcy laws refer to the legal principles and statutes that allow individuals and businesses to seek relief from overwhelming debts.
However, the question that many Arizona residents have is how often bankruptcy laws change in Arizona. Let us explore the evolving landscape of bankruptcy laws in Arizona and some of the reasons that lead to changes in bankruptcy laws in our state.
Bankruptcy Laws in Arizona
Generally, Arizona adheres to the principles and statutes of bankruptcy enacted at the federal level as outlined in the United States Bankruptcy Code. However, Arizona also applies additional provisions and exceptions specific to the state. Therefore, staying informed of federal and state laws is essential if you are considering bankruptcy. The best way to do this is to consult an experienced bankruptcy attorney in Arizona who can explain these laws and any changes simply and in a way you can understand.
Federal Bankruptcy Laws
Federal bankruptcy laws are codified in Title 11 of the United States Code. The Bankruptcy Code outlines the process of each Chapter of bankruptcy and the consequences of bankruptcy to a debtor. Federal laws are binding to every individual who applies for bankruptcy, regardless of the state.
Congress must pass legislation to amend federal bankruptcy laws, and the president must sign it into law. Congress enacts and updates legislation in the country concerning bankruptcy administration, although these changes do not happen often. The reasons for updates can include adapting to economic conditions and ensuring fairness for all parties involved in the bankruptcy process.
For instance, in the aftermath of the Covid-19 pandemic, the Small Business Reorganization Act (SBRA) was passed into law in early 2020. This amended the Bankruptcy Code, adding new provisions that simplified the reorganization process for small business debtors.
Arizona Bankruptcy Laws and Changes
In addition to the federal laws, each state, including Arizona, has the power to create and update its own bankruptcy laws as long as they do not conflict with federal law. This may include the requirements and exemptions that Arizona residents may enjoy when filing for bankruptcy. Arizona statute Az. Rev. Stat. 33 contains the specified domicile requirements, bankruptcy fraud, and homestead exemptions that every debtor must meet or enjoy.
Arizona bankruptcy law changes can include modifying exemption amounts, rules of protection of property, and filing requirements. The frequency of these changes is based on various factors, such as local economic conditions.
Recent Changes in Arizona Bankruptcy Laws
In 2020, the nation had some significant amendments to the bankruptcy laws at the federal level, which also impacted Arizona. These changes were primarily due to the harsh economic conditions caused by the Covid -19 pandemic. The CARES Act, made into law in March 2020, adjusted bankruptcy rules that raised the debt limit for subchapter V bankruptcy cases, greatly benefiting struggling entrepreneurs.
A new law in Arizona, HB2617, which went into effect in January 2022, significantly changes Arizona’s homestead exemptions and expands judgment-creditor rights.
Why Do Bankruptcy Laws Change?
The primary reason behind changes to bankruptcy laws is to balance the interests of debtors and creditors while adapting to evolving economic conditions. Lawmakers may amend bankruptcy provisions during economic crises or changing financial landscapes to support struggling individuals and businesses better.
Filing for Bankruptcy in Arizona
If you wish to file for bankruptcy in Arizona, it is vital to stay up-to-date with the current bankruptcy laws in the state to know the implications of filing bankruptcy in your case. Although you may file bankruptcy without the help of an attorney, it is best to train the services of one.
A reputable and experienced attorney can explain the legal process of filing bankruptcy and understandably explain complex terms. Even if you still wish to proceed with self-help resources, you should consult a bankruptcy attorney before starting the process. Additionally, most reputable bankruptcy attorneys generally offer initial consultations free of charge.
Contact an Experienced and Skilled Bankruptcy Attorney in Tucson, Arizona Today
If you are considering filing for bankruptcy in Arizona, our experienced Tucson bankruptcy attorney can steer you in the right direction and help you throughout the process. Contact us at (520) 791-2707 or fill out our confidential contact form to learn how we can help you in your situation and get on the path to financial
