Bankruptcy filings up in Phoenix rest of Arizona in wake of tax season

Bankruptcy filings up in Phoenix rest of Arizona in wake of tax season2019-04-16T03:35:23-07:00

This March in the Phoenix metro area, the number of bankruptcy filings rose to the highest level so far in 2013. While the economy is improving, many Arizona residents are still facing unmanageable debt loads after going through the recession and the housing crisis. For these Arizonans, bankruptcy can provide a much needed fresh start financially – and now may be a particularly attractive time to file for bankruptcy in Arizona.

Tax season typically corresponds with swell in bankruptcy filings

In Phoenix, there were 1,529 bankruptcy filings in March of 2013, a significant portion of the 2,093 filings throughout the state. This is the highest monthly total so far this year for the Grand Canyon State.

Even though bankruptcies are down compared to the same time period last year, the annual trend of a bump in filings during March, April and May has continued into 2013. For most Americans, tax season means a nice bonus in the form of a refund. A tax refund can be nicely put to use as an investment to cover the initial costs of filing for bankruptcy, like court costs and the cost of hiring a lawyer. It is also important for bankruptcy filers to use tax refunds wisely and at the proper time before filing; a tax refund owed to a bankruptcy filer when they initiate their case will usually be designated to partially repay creditors.

The tax season bankruptcy trend is a nationwide phenomenon, but it has been particularly pronounced in areas of Arizona that were hit hard by the down economy. Typically, the tax season spike in bankruptcy filings begins to ebb in May.

New exemptions further protect Arizona bankruptcy filers

Even beyond considerations involving a tax refund, now may be an especially good time to consider filing for bankruptcy in Arizona. Every state has exemptions that determine how much of a filer’s property is shielded from liquidation during the Chapter 7 bankruptcy process. For most Chapter 7 filers, these exemptions mean that they do not have to surrender any property. Under a new Arizona law signed by the governor in April, the exemption amount is going up in several categories.

The household goods exemption, formerly set at $4,000, will be raised to $6,000, and this exemption now also includes “consumer electronic devices” like iPods and similar items. An additional exemption of $1,000 has been added for computers. Exemptions for cars and wedding rings are both going up by $1,000 apiece, to $6,000 and $2,000, respectively. And, under the new law, animals – including pets as well as agricultural stock – will be safe from creditors in bankruptcy if they are valued at $800 or less, up from the previous exemption amount of $500.

Get your financial life bank on track with help from an Arizona bankruptcy attorney

If debt is a problem in your life, bankruptcy may be a good solution. With an initial investment to cover costs, you can eliminate thousands owed to creditors while hanging on to your cherished personal property thanks to Arizona’s generous bankruptcy exemptions. Contact an Arizona bankruptcy attorney to learn more about what bankruptcy can do for you and to begin building your case.

Read more about our bankruptcy services…

Why should you hire our firm to represent you in bankruptcy?

Great question. Here are a few reasons:

  • 1. Bankruptcy is our sole area of practice. Attorney Wright has over 10 years of experience in the field of bankruptcy and has helped over 1000 people successfully file.
  • 2. Attorney Wright has an accounting background that is useful in analyzing complex financial documents. Prior to law school he obtained a degree in accounting from the University of Wisconsin School of Business. He exercised his strong numerical aptitude in the field of accounting, including several years with The Kohler Co., before ultimately deciding to pursue a law degree.
  • 3. New clients meet with an attorney during their first visit. We understand your time is valuable. It is important your questions are answered quickly and accurately so you can take appropriate steps to secure a better financial future and eliminate fear and stress.
  • 4. In business, referrals are the highest form of professional compliment. We frequently receive referrals from other lawyers and previous clients.
  • 5. Our firm is small which enables us to focus on quality over quantity. We don’t have billboards on the I-10 or banners affixed to public transportation. Our approach is a bit more understated. We care about people and doing things right and it shows in our low employee turnover and positive reviews.
  • 6. Perhaps the most important consideration is the cost of filing bankruptcy. We continuously assess our fees to ensure we offer fair and competitive pricing. We want to offer you a deal without sacrificing the quality of your experience.
Attorney Ben Wright

Receive a FREE Consultation

Use the form below or call us at 602-456-6085 today. We’re here to help.

    Our Locations

    What our clients are saying…


    Mr. Wright and his staff were amazing. They made a negative situation a lot better and turned it into a positive. Could really tell they care helping people and I will refer their Phoenix Bankruptcy Attorney firm to friends and family. Thanks again.


    I called around looking for the right bankruptcy lawyer and came across Benjamin Wright. He personally called me for the consultation seeing how I live in Kingman AZ. He was very helpful from the start and his staff was very friendly and explained any questions I had, sorry for all the questions. I would definitely recommend Wright law offices, and I do!! Thanks for everything, you made what seemed like a hard thing to do simple!! You guys rock!!!


    Great lawyer, he really helped my mother out of a jam. She was totally new to bankruptcy and he talked with us for about an hour and a half to make sure she wouldn’t be worried.


    Ben is a kind and down to earth attorney. He worked around my busy schedule as a single mom (school, full-time job, and daycare pick up and drop off times). He explained absolutely everything to me and was good about e-mailing. I am writing this review as a THANK YOU.


    I had a very positive experience with Attorney Wright. He or his staff returned my e-mails and calls promptly (even after business hours occasionally). His fees were reasonable. He was patient with me when I showed up in court missing an important document. He is aggressive, but fair and nice.


    Bankruptcy Myths Debunked

    Navigating the complexities of bankruptcy can be a challenging journey, filled with misconceptions and myths that often deter individuals from [...]

    For individuals who maintain a steady income but are grappling with debts that need more time to be cleared, Chapter 13 bankruptcy could provide a viable solution. This form of bankruptcy enables debtors to retain their property while adhering to a three to five-year repayment plan. In Scottsdale, the bankruptcy attorneys at Wright Law Offices utilize their expertise in developing personalized Chapter 13 plans that are uniquely designed to suit your circumstances and work in your favor.

    When credit card debt spirals beyond control, the feelings of isolation and stress can be daunting. However, with a knowledgeable lawyer by your side, the situation can be transformed significantly. Lawyers are experienced in negotiating with formidable credit card companies, often succeeding in achieving reduced interest rates or a minimized debt total. At Wright Law Offices, located in Phoenix, our committed legal team stands ready to help you take back control of your financial situation and direct you towards other potential debt relief avenues like bankruptcy.

    The prospect of foreclosure can make it seem like your world is tumbling down. Yet, it's vital to remember that there are legal routes available to navigate this challenging situation. Foreclosure is a process initiated by lenders when mortgage payments are overdue, leading them to recover their loan by selling your property. While it sounds intimidating, our adept team at Wright Law Offices in Tempe is here to assist. We guide you through every step of the process, thoroughly exploring all viable options, such as loan modification, bankruptcy, or even contesting the foreclosure in court.

    Being in debt to the IRS can create enormous stress. However, a tax debt lawyer can intervene and significantly improve your situation. They're skilled in negotiating a viable payment plan with the IRS, striving to reduce the tax debt you owe, and in certain scenarios, even getting penalties and interest absolved. The proficient team of Scottsdale tax debt lawyers at Wright Law Offices is committed to helping you face this challenge with optimism. Leveraging our deep knowledge of tax law, we're dedicated to securing the best possible outcome for every client we represent.

    Go to Top