• If you are an Arizona resident who can no longer pay your debts and meet your basic financial obligations, you may be considering Chapter 7 bankruptcy through your local division of the United States Bankruptcy Court. Chapter 7 bankruptcy offers Arizona residents permanent forgiveness of most outstanding debts under federal laws. However, some debts cannot be included in your Chapter 7 case. Before filing your Chapter 7 case in an Arizona bankruptcy court, you should review applicable local rules and federal laws.
  
  

Initial Filing Requirements

• Arizona bankruptcy courts will accept your petition without a list of your liabilities and assets, according to the United States Bankruptcy Court District of Arizona website. This affords you immediate legal protection; according to the book "How to File for Chapter 7 Bankruptcy," no creditor can pursue any type of debt collection once you file Chapter 7 bankruptcy. This can temporarily prevent auto repossessions, evictions, home foreclosures, wage garnishments, creditor lawsuits and collection calls or letters. However, in Arizona, if you do not provide a full accounting of your debts and income within 15 days of filing the petition, your case may be dismissed. You must also complete a federally-approved credit counseling session before you can file any part of your petition.
  
  

Ineligible Debts

• Not all debts can be discharged in a Chapter 7 case, according to the United States Bankruptcy Court District of Arizona. Alimony, child support and most tax debts cannot be forgiven through bankruptcy. Also, federally-issued student loans generally cannot be included in a bankruptcy case, according to "How to File for Chapter 7 Bankruptcy." You may be able to include Arizona state and local tax debts or back federal taxes in your Chapter 7 case if they are at least three years old.
  
  

Chapter 7 and Your Assets

• Chapter 7 likely will not stop creditors from taking your vehicle or foreclosing on your home once the case is settled, according to the United States Bankruptcy Court District of Arizona. Any relief from auto repossessions or home foreclosures applies only when your case is still being decided upon by an Arizona bankruptcy judge; legally, no creditor can repossess your car, foreclose upon your home, evict you, sue you or pursue other collection activity while the Arizona bankruptcy court is handling your petition for Chapter 7 debt relief. Also, in most cases, Chapter 7 filers risk losing assets that were not part of a secured loan, such as a mortgage or car note. Your savings accounts, certificates of deposit, stocks, jewelry and land investments may be at risk of seizure if you file Chapter 7 bankruptcy in Arizona. However, Chapter 7 filers never risk losing their retirement accounts, according to "How to File for Chapter 7 Bankruptcy."