Bankruptcy is the opportunity to start a new financial life without the burden of having to pay debts you cannot pay. The concept of requiring that creditors forgive the debts of their debtors periodically has been around for thousands of years; see Deuteronomy 15:1-2. In the United States it is a means to end the seemingly endless problem of not having enough money to pay your obligations. It does not mean the end of your life. America’s Founding Fathers made sure bankruptcy was provided for in the Constitution. We’ve had bankruptcy in the United States since the 1800s! Bankruptcy has gone back and forth over the years swaying between what is better for the creditors or better for the debtors depending on the latest laws enacted by Congress. For people in Arizona, Bankruptcy has always been an option. However, these laws change from to time to time and there are different rules and practices for different geographical areas of the state. The ever-changing hoops to crawl through require a competent guide.
The two common types of personal bankruptcies filed are Chapter 7 and Chapter 13.
Chapter 7 Liquidation
Chapter 7 bankruptcy in Arizona enables you to eliminate most, if not all, of your debts, but may require you to forfeit some assets which are not protected by exemption laws. For over 90% of those filing bankruptcy under chapter 7 the debtor does not have to forfeit any assets. Those are called “no asset” cases. Competent legal representation will help you protect the assets you have.
Chapter 13 Reorganization
Chapter 13 bankruptcy in Arizona does not require you to forfeit any assets but focuses on your budget. Instead of requiring you to give up your nonexempt assets, the court wants you to give up your excess or disposable income in the form of a monthly payment for a period of time. Most of those filing bankruptcy using chapter 13 are not required to pay all of their debts.
Circumstances Under Which Bankruptcy May Be Considered:
Reduction in Income
Has your income been reduced due to reduction in wages, job layoffs or termination? Have you or your spouse suffered such a loss? Have you suffered a significant reduction in your business income due to the economy? Losing your job or suffering business losses can be devastating. Most households can’t last for more than a couple months without income. What can you do to get back on your feet? Call The Moak Law Firm for solutions that will work for you.
Have you been struggling to pay your mortgage? Does the bank want to move in? Do you have a foreclosure date? Would you like to know how you can keep your home? Would you like to know how to keep your family safe?
Is your creditor grabbing money out of your paycheck before you even see it? Can you survive if your paycheck is cut by 25% every pay day? Would you like to put a stop to the garnishment? You have options.
Large Medical Bills
Medical emergencies come with no warning and are very costly even with insurance. Loss of time at work and high medical bills can sink you faster than the Titanic. There is a way to get you back on your feet.
Has Your Car or Other Property Been Repossessed?
Have you missed payments on your car or other property? Are you afraid to wake up one day and find your car missing? Did you know you can keep most of your belongings through bankruptcy? That means your car too.
Are you and your spouse planning to divorce? Each of you may be liable for debts you both used to share? Are you unsure about what the future will bring?
Take Control of Your Finances Now
Call 480-755-8000 to speak with our Arizona bankruptcy attorney today for immediate help.