Filing for Bankruptcy through the use of a Bankruptcy Attorney

Filing for Bankruptcy through the use of a Bankruptcy Attorney in Phoenix

To say that this world economy is struggling is an understatement. No one is able to escape from the effects of a vulnerable economy, Arizona included. The state ranked thirteenth in America for personal bankruptcy filings in 2010. Close to ten thousand cases were filed and of that number, eighty-two percent were reported as Chapter 7. These statistics are worrying, and are exactly why Chapter 7 bankruptcy attorneys in Phoenix are rising in number. If you are filing, it's important that you learn as much as you possibly can about the subject.

What is Chapter 7 bankruptcy? Are there other forms?


The Bankruptcy Code of the United States lists down three provisions that men and women can file: Chapter 7, Chapter 11, and Chapter 13. Chapter 13 requires payment of some or all of the debt over a duration of several years. Chapter 11 is used mainly by businesses that need reorganization to emerge from their financial troubles.

Chapter 7 is the most frequent provision filed in america. This provision enables debtors to liquidate all of their assets to pay for creditors. It is also used to show that the debtor does not have any assets to fund his debts.

What is the process that goes into filing for bankruptcy?

The first thing is to get in contact with a Chapter 7 bankruptcy attorney in Phoenix or your city/town in Arizona. He or she will guide you with the papers that have to be filed in court. In these documents, you need to be able to prove that you don't have the capacity to manage a repayment plan. On top of this, you must produce a list of all your assets to find out if there are any items or properties worth liquidating. These documents will be analyzed by the court and will determine whether you are eligble for liquidation. Being eligible for this provision could be a challenging process. Check with your Chapter 7 bankruptcy attorney in Phoenix to obtain more in-depth information.

The proceedings could take nearly half a year to get resolved. Expect to commit to the various processes and inquiries that will happen during this period. If the case is successfully discharged, you may be obligated to attend credit counseling.

What are the consequences of filing for bankruptcy?

People that see this concept as an easy way out of their financial obligations are wrong. It can have numerous negative effects, beginning with your credit rating. Understand that it will reflect on your credit history for a minimum of six to ten years. A poor credit score can prevent you from securing home or car loans down the road. Your career could also be affected by the filing of this process.

Additionally, some people think that it may help stop foreclosure. Attorneys in Phoenix will confirm otherwise. The process may well buy you some time; but in the end, the prevention of foreclosure depends ultimately on your mortgage company. If there are other legal ways for you to pay off your debt or avoid foreclosure, do it. Filing for bankruptcy ought to be your last resort.

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