Turning Financial Hardship Into Opportunity

Is bankruptcy right for you?

Turning Financial Hardship Into Opportunity

In certain situations, bankruptcy can make a huge impact on a person’s life. A Chapter 13 bankruptcy allows you to repay debts, or a Chapter 7 bankruptcy can eliminate debt and give you a new start.

Bankruptcy is one option to debt relief, and although it is the right move for many people, it is not right for everyone.  An experienced Arizona bankruptcy attorney will provide you with your alternatives and recommend the best way for you to gain your financial freedom.

Consult with an attorney who is versed in the Arizona bankruptcy law and consider the following:

• Get informed about the types of bankruptcies available to you and determine if you file, which is best for your financial situation: Chapter 7 is a process where many if not all debts are outright cancelled and discharged. Chapter 13  is a bankruptcy where by using your income you make payments to your debts over a period of time established in a plan.

• Assess your financial situation and consider the alternatives to bankruptcy.  An attorney can help you exactly determine if your situation warrants filing bankruptcy.  Maybe things aren’t as bad as you think they are.  You might have debt that cannot be eliminated in a bankruptcy.  There may be options that you are unaware of that haven’t been considered.

• Are you eligible for bankruptcy?  Your attorney can provide a means test in order to see if you qualify for filing.

• Are your debts dischargeable?  There are some types of debts (child support, for example) that wouldn’t be forgiven in a bankruptcy.  Bankruptcy might not be able to eliminate all your debts, but it can make it so that you can pay these debts if others are eliminated.  Bankruptcy is good for wiping out most credit card debt and insecure loans.

• Consider your home, car, or other property. An attorney that is experienced in bankruptcy law can help you determine which exemption laws are available to you, and how much property you would keep if you file.  Consult with your lawyer about pensions, retirement accounts, or life insurance. In most cases and in most states, you will not lose these.

• How will bankruptcy affect you personally?  You will have to disclose details of your finances, and others may find out about your bankruptcy. Eliminating debt in a bankruptcy may also have a positive affect on your health, personal, and professional life, as you will not face each day with the stress and burden of debt.