City-data.com is a website that lists statistics about American cities and towns. Recently, I spent some time looking at the numbers for Prescott and Prescott Valley. I can’t really tell you why I decided to check up on Yavapai County, but I did and what I found out led me to some interesting thoughts regarding bankruptcy in Prescott. Whenever I look at bankruptcy in an area I start off by diving into the data relating to housing and income. Prescott has a fairly low median income for Arizona at $41,010 where as Arizona as a whole has a median income of $48,745. This in and of itself is not that interesting, but it’s the housing prices in Prescott that draw questions.
The median house value in Prescott is $285,562 nearly $100,000 more than the median for Arizona as a whole. This points to two unique factors at work in Prescott, firstly the lower income and higher house prices means this is a retirement area, and secondly the higher house prices means this area wasn’t as hard hit by the housing crisis as was the rest of Arizona. The idea that Prescott and Prescott valley is an ideal retirement area is nothing new, in fact a few months ago Yahoo.com listed it as one of the best underrated retirement areas.
Unfortunately, with low incomes and high home prices Prescott is especially vulnerable to market forces. This can result in crushing mortgage payments. Sometimes the best and only solution is to file for bankruptcy. A lot people have misconceptions about what filing bankruptcy means. Bankruptcy means a fresh start. After filing a bankruptcy people are still able to get car and home loans, it’s not a scarlet letter that will stop all financing. It doesn’t mean you will lose your house or car. Often times within a year or two of filing a bankruptcy people will have credit scores in the high 600s or 700s.
The prospect of filing for bankruptcy can be frightening, but it doesn’t have to be. Let one of our skilled attorney’s talk to you and explain the process and benefits of filing for bankruptcy. Please contact us at 623-258-4480 so you can meet with one of our attorneys for a free consultation at our Prescott office.