Tips on Surviving Bankruptcy in Arizona

Lerner & Rowe Law Group
surviving bankruptcy in Arizona

Whether you’ve just filed for bankruptcy, or you’re on the fence trying to figure out if bankruptcy is right for you, you’ll benefit from reading the following tips on surviving bankruptcy in Arizona.   

By doing so you’ll gain insight into how to identify and organize your debt,  how a bankruptcy may impact your life, as well as how filing for a Chapter 7 or Chapter 13 bankruptcy could help create a more financially stable future. 

Why Filing for Chapter 7 or 13 Isn’t a Bad Thing? 

Filing for bankruptcy can be the fresh start needed to take back control of your finances and get creditors off our backs. Here’s how:

  • Chapter 7 allows you to discharge debt through the liquidation of nonexempt property. If you don’t have a steady income, this bankruptcy process could be a beneficial debt relief option for you.
  • Chapter 13 gives debtors with a steady income the opportunity to develop a repayment plan based on future earnings to repay all or part of your debt. This bankruptcy process may allow for you to retain certain nonexempt property, but can take up to five years to resolve.  

In either case, a court-appointed bankruptcy trustee would be assigned to help with liquidation of property and distribution of payments to your creditors. Added bonus: with the support of an experienced bankruptcy attorney at your side you’ll begin to realize that “yes” you can survive a bankruptcy in Arizona. 

Related topic: Facts and Myths About Bankruptcy

How Can I Identify and Organize My Debt?

One of the most important steps that you can take to get control of your finances is to identify what type of debt you’ve acquired and how much you owe. You can do this by: 

  1. Making a list of all of your debts
  2. Organizing your debt by categorizes (secured, unsecured, revolving, or mortgage)
  3. Finding supportive documents that can be used to verify your debt

If you have not filed for bankruptcy yet, this information will assist an Arizona bankruptcy attorney during an initial evaluation of your current situation. They will then be able to present you with the best debt relief option that meets your current financial needs. 

Conversely, if you are in the process of filing for bankruptcy these details are needed to determine the best way to handle repayment of creditors— such as discharging debt, negotiating lower interest rates, and establishing repayment plans.

Related topic: How Do You Choose a Bankruptcy Lawyer?

How a Bankruptcy May Impact My Life?

Another question you might have concerning bankruptcy is— how much of an impact will it have on my everyday life? As with all major life decisions, filing for bankruptcy could create a ripple effect that seeps into other aspects of your life. Then again, if you don’t get control of your debt and pay off creditors your life may also be greatly affected. 

Aside from potentially losing property and assets to pay off creditors and debt collectors, filing for bankruptcy in Arizona could result in your:

  • Bankruptcy filing becoming public knowledge
  • Credit score dropping
  • Inability to obtain certain employment opportunities 
  • Creditors no longer pursuing you for repayment, but shifting their attention to any co-signers to seek payment  
life after bankruptcy

The good news is that there is life after bankruptcy.

You can take steps to rebuild your credit, start to put savings away for a rainy day, purchase a home and/or vehicle again, and get out from under piles of unpaid worrisome credit card bills, medical expenses, and some unpaid taxes

Interesting bankruptcy fact to know: From October 1, 2005 to September 30, 2021 approximately 15.3 million nonbusiness bankruptcy petitions were filed that mainly involved consumer debt—10.3 million filed Chapter 7 bankruptcy and 5 million filed Chapter 13 bankruptcy. Meaning, seeking debt relief through filing for bankruptcy in Arizona is more normal than you think. 

Get a Free Consultation from an Arizona Bankruptcy Attorney

Our bankruptcy and debt relief team hopes that this information brought a bit of clarity and comfort to you. We understand that deciding to take back control of your finances is a big step and can be a scary undertaking on your own. 

Just know that we are here to help walk you through the process and ensure that you fully understand what to expect and how to move forward. 

Contact us today to schedule a free consultation with one of our bankruptcy attorneys. You can call us at 602-667-7777, connect via LiveChat, or request a free review of your current debt load by completing this online form.

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.