Addressing your Debt Issues with the Help of a Chapter 7 Bankruptcy Attorney in Phoenix
To say the world economy is having difficulties is an understatement. Nobody is spared from the effects of a fragile economy, Arizona included. The state ranked thirteenth in the country 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 alarming, and are precisely why Chapter 7 bankruptcy attorneys in Phoenix are rising in number. If you’re considering filing, it’s essential that you learn as much as you could about the topic.
What is Chapter 7 bankruptcy? Are there other kinds?
The Bankruptcy Code of the United States lists down three provisions that people 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 companies that need reorganization to get away from their financial troubles.
Chapter 7 is the most frequent provision filed in the United States. This provision allows debtors to liquidate their assets to pay creditors. It could also be used to prove that the debtor does not have any assets to cover his debts.
What is the procedure that goes into filing for bankruptcy?
The first step is to get in contact with a Chapter 7 bankruptcy attorney in Phoenix or your city/town in Arizona. She or he will guide you with the papers that have to be filed in court. In these documents, you need to be able to establish that you don’t have the capacity to deal with a repayment plan. Moreover, you will need to supply a list of all your assets to find out if there are any items or properties worth liquidating. These documents will be assessed by the court and will see whether you qualify for liquidation. Being qualified for this provision generally is a complicated process. Check with your Chapter 7 bankruptcy attorney in Phoenix to get more in-depth information.
The process might take nearly half a year to get resolved. Expect to commit to the different processes and inquiries that will happen during this period. If the case is successfully discharged, you can be obligated to attend credit counseling.
What are the consequences of filing for bankruptcy?
People who look at this concept as an easy way out of their financial obligations are mistaken. It may have numerous negative effects, beginning with your credit rating. Remember that it will reflect on your credit history for a minimum of six to ten years. A poor credit score can stop you from securing home or car loans later on. Your career may also be affected by the filing of this process.
In addition, some people think that it can help prevent foreclosure. Attorneys in Phoenix will indicate otherwise. The process might buy you some time; but in the end, preventing foreclosure depends ultimately on your mortgage company. If there are additional legal ways for you to pay off the debt or avert foreclosure, do it. Filing for bankruptcy should always be your last resort.
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