Why File For Bankruptcy?

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Consumer Bankruptcy Protection

Why file for bankruptcy? Because bankruptcy can offer you a way out of debt. However, there are many factors to consider when determining which type of bankruptcy is right for your situation. These factors include the amount of property you own, the amount of debt you have and whether you are facing foreclosure or repossession of your property. To learn more about how bankruptcy can help you gain a fresh financial start, speak with experienced Phoenix bankruptcy lawyer Nicholas Fuerst. Attorney Fuerst can assist you in determining the appropriate consumer bankruptcy protection for your financial situation, as well as preparing the necessary forms.

  • Chapter 7 BankruptcyChapter 7 bankruptcy offers individuals a way to discharge their unsecured debts. You may, however, may to give up any property not covered by Arizona’s bankruptcy exemptions.
  • Chapter 13 BankruptcyChapter 13 bankruptcy allows for individuals struggling with debt to reorganize their payments through a repayment plan in order to pay them off over three to five years.

Get Rid of Overwhelming Credit Card Debt

Bankruptcy is an effective way to eliminate your credit card debt. In Chapter 7 bankruptcy, your credit card debt can be wiped out. In Chapter 13 bankruptcy, you can pay off your debt through your repayment plan. However, because credit card debt is not considered priority in a Chapter 13 proceeding, you may not need to pay it back at all. Other unsecured debts, such as medical bills, may also be discharged through Chapter 7 bankruptcy.

Stop a Foreclosure or Repossession of Your Property

If you are behind on mortgage payments, Chapter 13 bankruptcy may be able to stop a foreclosure and allow you to catch up on your missed payments. Likewise, if your car or other property is in danger of repossession, filing for Chapter 13 can stop collection efforts and provide a way to pay back your debt through your repayment plan.

Stop Creditor Harassment

If you are behind on making the required payments for your debts, you may be receiving phone calls from your creditors. In addition, creditors can take you to court to collect what you owe them. If they are successful, your wages can be garnished and liens can be placed on your assets. You can put a stop to harassing phone calls or any potential lawsuits by filing for bankruptcy. An automatic stay will be put into effect to at least temporarily stop any collection efforts.

Phoenix Bankruptcy Lawyer

The bankruptcy process can be complicated. You do not have to go it alone. Contact Phoenix bankruptcy attorney Nicholas Fuerst for more information regarding bankruptcy in Arizona. Call our Phoenix office at (480) 755-1930.