Filing for bankruptcy relief is a serious decision. The impact of a bankruptcy filing could affect your finances for many years. Therefore, it is best to seek advice from an experienced Scottsdale bankruptcy attorney before filing a Chapter 7 or Chapter 13 bankruptcy case. Our lawyers offer free case reviews, so it does not cost you anything to explore bankruptcy options with a trusted bankruptcy attorney near you.
Filing For Bankruptcy in Scottsdale
The benefits of filing bankruptcy are numerous. Some of the common pros of bankruptcy include:
- Getting rid of debts that you cannot afford to pay;
- Protecting your home from foreclosure;
- Avoiding wage garnishments, debt collection lawsuits, and levies;
- Protecting your vehicle from repossession;
- Relieving stress caused by debt problems;
- Stop creditor harassment; and,
- Get a fresh start to recover from a financial hardship or crisis.
People file for bankruptcy relief in Scottsdale for many reasons. Most of the causes of bankruptcy are not within our control. For example, a person is injured or becomes ill and requires substantial medical care. The medical bills can be too much to pay. Unemployment and reductions in income are also common reasons for bankruptcy filings. Other causes of bankruptcy include the death of a spouse, divorce, business failure, and overuse of credit cards and other debts.
Should you file a Chapter 7 or Chapter 13 Bankruptcy?
Both Chapter 7 and Chapter 13 bankruptcy cases offer debt relief. They both stop creditor harassment and prevent creditors from proceeding with certain debt collection efforts. However, each bankruptcy case has certain requirements and elements that make the cases different. Your financial situation determines which chapter of bankruptcy is right for you.
The Chapter 7 process is quicker and less costly than a Chapter 13 case. However, there are some things to consider before filing under Chapter 7:
- Debtors must meet the Chapter 7 income qualifications to receive a bankruptcy discharge;
- Chapter 7 is a liquidation bankruptcy case. If your property has equity above the bankruptcy exemptions, you could lose some property;
- In a Chapter 7 case, you cannot save your home from foreclosure or repossession unless you can afford to catch up the payments immediately; and,
- Some debts are not dischargeable in bankruptcy, so you continue to owe those debts. Debts you cannot generally get rid of in bankruptcy include tax debts and student loans. Alimony and child support are never dischargeable.
The Chapter 13 process costs more and takes longer, but it has some advantages that can make Chapter 13 a better option than Chapter 7:
- The Chapter 13 plan allows you to catch up mortgage payments over time to keep your home;
- You may be able to lower your car payments by spreading the loan out over a five-year plan;
- Chapter 13 allows you to pay tax debts and back alimony or child support over several years; and,
- A Chapter 13 case can protect property that might be subject to a bankruptcy auction in Chapter 7.
A Chapter 13 plan payment is based on numerous factors. Our Scottsdale bankruptcy attorneys work diligently to achieve the lowest bankruptcy plan payment allowed by law. Our goal is to help you find an affordable way to get rid of debts while giving you the best chance to recover and rebuild after going through a financial crisis.
Contact Our Scottsdale Bankruptcy Attorneys for a Free Case Review
Bankruptcy can be a positive way to get out of debt. The fresh start you receive from a bankruptcy discharge allows you to get back on your feet and plan for the future.
Contact the legal team of Allegiant Law Group at 602-562-1000 today to schedule your free consultation with a Scottsdale bankruptcy lawyer.