Declaring bankruptcy is a major financial decision that can have significant, long-term effects. However, when you feel overwhelmed with debt and do not see any improvement in your ability to repay these debts in the foreseeable future, filing bankruptcy may be the best option. Discussing your bankruptcy options with experienced Arizona bankruptcy lawyers can help you decide whether bankruptcy is the right decision for you.
Which Type of Bankruptcy?
The two most common types of personal bankruptcy are Chapter 7 and Chapter 13. Both are a legal process provided by the bankruptcy court designed to help individuals having difficulty paying their debts. Chapter 7 discharges or eliminates most unsecured debt with certain exceptions. Chapter 13 is debt reorganization and requires a monthly payment for up to five years to a court appointed Trustee. Generally, only a portion of the unsecured debt is eligible for repayment. Which one is right for you depends on your personal financial situation and ability to repay your debts.
Our Arizona bankruptcy lawyers can guide you through all your options and help you make the best decision based on your unique situation.
Reasons to Consider Bankruptcy
When you are struggling financially, but keep falling further behind, bankruptcy may still seem like an extreme solution. However, it can be a faster, better way to reach financial freedom. Bankruptcy can stop harassing collection calls, lawsuits, and wage garnishments, because it eliminates your debts. Surprisingly, it also often does more good than harm to your credit score. While bankruptcy is not right for everyone, it might be the right option for your financial future, if you are:
- More than one month behind on your mortgage payments. Or, you have already received a notice of your home’s impending foreclosure. Bankruptcy can delay or stop the foreclosure process. A chapter 13 bankruptcy may allow you to catch up on your mortgage.
- Behind on your vehicle payments and unable to catch up or you have already received a notice of repossession. Bankruptcy can delay or stop repossession or help you catch up on payments.
- Afraid to answer your telephone due to harassing calls from creditors. Bankruptcy prohibits creditors from contacting you in any attempt to collect a debt, initiating or continuing any lawsuits against you, or pursuing any wage garnishments.
- Unable to afford to make more than the minimum payments on your debts or taking out cash advances or high interest loans just to make minimum payments. Bankruptcy can allow you to make a fresh start.
- Unable to meet your basic monthly expenses without using credit to pay for items like housing, utilities, groceries and other living expenses. Bankruptcy may eliminate other debts to free up funds for standard living expenses.
- Suffering from poor credit, because your credit report is full of late or missed payments or multiple charge-offs being reported to the credit bureaus each month. Bankruptcy can help stabilize your finances and reestablish your credit.
First Steps
Before filing bankruptcy in Arizona, you must complete simple bankruptcy credit counseling to evaluate your personal financial situation and discuss alternatives to bankruptcy. Before your debts are discharged, you must also complete a debtor financial management program. This aims to teach you how to develop a budget and manage your money and credit wisely. Your bankruptcy fees include your credit counseling and financial management. Our Arizona bankruptcy lawyers will be here to help guide you through this process.
Hire Top Arizona Bankruptcy Lawyers
If you are struggling to make ends meet and think bankruptcy might be the right option for you, contact the experienced Arizona bankruptcy attorney at Lerner & Rowe Law Group. We can examine your financial situation, determine your eligibility to file bankruptcy and explain your options. We offer a free initial consultation and affordable payment plans. Visit our office Monday through Friday, from 8:00 a.m. to 5:00 p.m. Or call us anytime at 602-667-7777.