The decision to file bankruptcy is never an easy one. It is a decision filled with powerful emotions about whether filing for bankruptcy means you are a failure. But the thing you must not forget when facing this tough decision is that:
tough times never last but tough people do
The most important thing is to get the best advice possible from an experienced Bankruptcy Attorney Phoenix so that you know the truth about bankruptcy and whether it is the best thing for you to do to solve your debt problems and live a normal life going forward.
There are many myths about bankruptcy and most people don’t know the truth about bankruptcy.
These are all important things you must understand if you are considering filing for bankruptcy in Phoenix, Arizona.
All of these particular myths are 100% FALSE!
This is why speaking to and hiring an experienced and maybe more importantly, a compassionate Bankruptcy Attorney Phoenix is the first step in learning the truth when it comes to bankruptcy.
Without knowing the truth about the above myths and others you may have heard about bankruptcy, you will never know if it is the best thing for you to to do to resolve your debt problems and get a fresh start.
One common myth that any Bankruptcy Attorney Phoenix will immediately dispel for you is the commonly held belief by some that people who file for bankruptcy in Phoenix just don’t want to pay their debts.
Certain people actually believe that bankruptcy is just a way to get out of paying what you owe. This is far from the truth in the many clients we have represented in Phoenix bankruptcy cases.
These people say things like:
The truth is that by the time someone resorts to the protection and relief provided by the U.S. bankruptcy law, they have tried everything in their power to overcome the event that has caused the dramatic change in their circumstances that has caused them to lose their financial footing.
In fact, most people who file for bankruptcy in Phoenix had plenty of income to pay whatever debts they incurred at the time they incurred them but in almost all cases, something happened to them that they did not expect.
In other words…LIFE HAPPENED!
Almost all people who file for bankruptcy do so because they have had a drastic change of circumstances in their life that has caused their finances to spiral out of control.
Any Bankruptcy Attorney Phoenix will tell you that the people they represent in bankruptcy cases had something terrible happen in their lives that changed everything and despite their best efforts, they cannot turn it around quickly enough to avoid losing their homes, cars or suffer wage garnishments that make it impossible to survive and bounce back.
Any experienced Bankruptcy Attorney Phoenix will tell you that people who file for bankruptcy in Phoenix tried everything they could to get back on their feet and pay their debts. Usually, people live in shame and guilt trying desperately to avoid a bankruptcy filing.
That is why several million people a year file for bankruptcy protection…not to get out of paying their debts, but to get relief from debts once they have tried every way possible to pay their debts. Sometimes, they can repay all or a portion of their debts and sometimes they are entitled to a quicker fresh start.
Any good Bankruptcy Attorney Phoenix will tell you that they are grateful that the federal bankruptcy law exists because sometimes it is the only solution they have when life has become overwhelming and they need the fresh start bankruptcy law has to offer.
The bankruptcy law itself actually contains the words “fresh start” for a reason.
The federal bankruptcy law is intended to help honest people who find themselves under the weight of crushing debt a path to being debt free, getting a fresh start and being able to enjoy a productive and joyful life going after a bankruptcy discharge.
The best way to find out if bankruptcy can help you and how your specific situation would play out in a bankruptcy case is to consult with and hire a Bankruptcy Attorney Phoenix who is experienced in handling bankruptcy cases in Phoenix, Arizona.
Most of us can usually tell within about five or ten minutes of talking with someone whether they know what they are talking about. We can also tell within about five or ten minutes whether we feel comfortable with that person and whether they have a good heart and are compassionate toward others and more importantly about helping you solve your legal problem.
You should apply this same standard when you meet with a Bankruptcy Attorney Phoenix and you will hire the right Phoenix Bankruptcy Lawyer to advise you in your bankruptcy case. Knowledge and personal comfort and trust are the biggest factors you must consider and focus on.
That being said, when you meet with a Phoenix Bankruptcy Attorney, the conversation should always begin with determining whether bankruptcy can even help you in your current situation, what type of bankruptcy case you should file and whether you qualify for bankruptcy relief.
So do not make the mistake of thinking that you can file bankruptcy without the help of a good and experienced Bankruptcy Attorney Phoenix. At a glance, bankruptcy looks “basic” to many but the truth is that is a highly technical and complicated area of the law and the Court wants you to be represented, not only for your sake but to make the administration of your case easier for the Court.
It costs more to fix a wrongly prepared bankruptcy case than it does to hire the right Bankruptcy Attorney Phoenix to prepare the case the right way and represent you throughout the process.
Pure and simple, hire the best Phoenix Bankruptcy Lawyer and you will not have to worry about things going wrong. The old saying “Well Begun is Half Done” could not be more true in a bankruptcy case.
Not hiring a good Bankruptcy Attorney Phoenix would likely mean complications and potential disaster to you that you could not even imagine and haven’t you already been through enough stress by the time you make the decision to file for bankruptcy.
When you meet with any Bankruptcy Attorney Phoenix the answer should be based upon a number of factors; including,
An experienced Bankruptcy Attorney Phoenix can properly advise you on which chapter of the bankruptcy law would most help you achieve the outcome you desire based on your individual situation. Putting whether you qualify for a Chapter 7 under the means test aside for the moment, you need to know about why people typically file bankruptcy in Phoenix under Chapter 7 or Chapter 13 of the bankruptcy law.
Only then can you identify which scenario is more closely related to yours and with the help of your Bankruptcy Attorney Phoenix, decide the best course of action and the proper chapter of bankruptcy to file under if you are filing a bankruptcy case in Phoenix, Arizona.
Chapter 7 bankruptcy is what most people think of when they think of bankruptcy. It is called liquidation because when you file a Chapter 7 case in Phoenix, a Chapter 7 Bankruptcy Trustee is appointed to your case and that Chapter 7 Trustee has one job: to recover assets they can sell (liquidate) to pay your creditors. Of course they get a percentage of any assets they liquidate so they have an incentive to recover and liquidate anything the bankruptcy law under Chapter 7 allows them to liquidate.
Chapter 7 is most often filed by people who are overwhelmed by “unsecured” debts. These are debts you owe where there is no collateral for the debt. This type of debt usually consists of credit card debts, medical bills, signature loans, but could also include deficiency amounts or judgments resulting from the surrender or repossession of debts that were “secured” debts, like cars and real estate. Your Bankruptcy Lawyer in AZ can tell you what other debts fall into this category.
The advantage of a Chapter 7 bankruptcy case is that it is short, typically only open for 3 or 4 months after the filing of the case. If there a no assets for the Trustee to liquidate and distribute, you would get your Bankruptcy Discharge and the case would close shortly thereafter.
So if you are under a certain level of income under the means test, everything you own is exempt and protected and you are current on your home mortgage and car loans, Chapter 7 can help you discharge the debts you have and you can get your fresh start much faster than under Chapter 13. Your Bankruptcy Attorney Phoenix will explain this in more details based on your specific situation.
A Chapter 13 bankruptcy case is basically a court supervised repayment plan where you make a monthly payment to a Chapter 13 Bankruptcy Trustee for 3 to 5 years. Many of the same rules apply that apply in a Chapter 7 bankruptcy case but there is no liquidation. Instead, you pay on your debts over time either because you are behind on a secured debt and want to catch up on those payments or you have excess disposable income under the means test and can afford to pay part of your unsecured debts.
Your Bankruptcy Lawyer in AZ will advise you to never understate your expenses and allow for emergencies when doing your Chapter 13 budget.
Many people file Chapter 13 bankruptcy to solve mortgage problems. It allows you to cure a mortgage default and catch up on past due mortgage payments so that you can keep your home. If you only have enough income to cover your living expenses and cure the mortgage default, you usually do not have to pay on your other unsecured debts. However, whatever income you have above what is needed to live and cover the secured loans in your plan, you have to pay that into the plan as well to go to your unsecured creditors, so again, budget wisely.
The other reason people in Phoenix file for Chapter 13 bankruptcy is because they make too much income to qualify for a Chapter 7 bankruptcy and they are still better off paying creditors a percentage on the dollar of the debts they owe so that eventually they receive a discharge in bankruptcy. A smart Bankruptcy Attorney Phoenix will tell you that it is better to pay pennies on the dollar and receive the credit healing power of the Discharge than not just because you don’t qualify for a Chapter 7 bankruptcy.
Chapter 13 bankruptcy cases are also used to catch up on tax debts, child support obligations and sometimes student loans. The best and most experienced Bankruptcy Attorney Phoenix will guide you through these important issues in a Chapter 13 bankruptcy, as there are special rules that apply.
The more your Bankruptcy Lawyer in AZ knows, the better they can advise you. If you hide things, it’s impossible for them to work around issues that may complicate your case. When in doubt, over-disclose everything to your Bankruptcy Attorney Phoenix. The more they know and the better you can honestly discuss the facts, the better they can advise you on the complications and strategy needed in your Phoenix bankruptcy case.
DOWNLOAD OUR 2017 COMPLETE PHOENIX BANKRUPTCY GUIDE FOR DETAILED PROCEDURE OF HOW A BANKRUPTCY CASE WORKS, TIMELINES, PITFALLS AND OTHER IMPORTANT INFORMATION YOU NEED TO UNDERSTAND
Despite the best efforts of big banks and their lobbyists, the United States Bankruptcy law is alive and well in Phoenix, Arizona and a good Bankruptcy Attorney Phoenix can help you get debt free and solve your debt problems. The bankruptcy law can help residents of Arizona who are overwhelmed by debt, facing foreclosure on their home or other financial issues and hardships.
With the help of a seasoned FLACMA Bankruptcy Attorney Phoenix to guide you through the process, it may be the best thing you ever do that you probably never wanted to do.
The best Bankruptcy Lawyer in AZ will tell you that the Fresh Start offered by the bankruptcy law may help you move past bad events in your life so that you can live your life in relative peace financial freedom and be a contributing member of the Phoenix, Arizona community.
We hope you found this Bankruptcy Attorney Phoenix 2017 Guide to Bankruptcy helpful. Please contact your FLACMA Bankruptcy Attorney Phoenix today so you can get personalized and specific advice on your debts and find peace and prosperity through bankruptcy.
For more information on how much it costs to file for bankruptcy in Phoenix, Arizona, click the link below for our detailed blog article on this subject. It discusses the range of typical attorneys fees for both Chapter 7 bankruptcy and Chapter 13 bankruptcy. Remember that in addition to attorneys fees, there are always court filing fees, credit counseling costs and credit report costs.
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