Bankruptcy Attorney Surprise AZ
A Surprise AZ bankruptcy attorney knows that bankruptcy is often a misunderstood resource. Many people have a stigma against those who have to file for bankruptcy, when in reality, it is a tool that can greatly improve the financial status of someone struggling to get by. There are so many benefits to bankruptcy, but it’s important to not rush into filing. You will need to make sure you file for the right bankruptcy chapter (there are six to choose from), in order to yield the most benefits possible. At Wright Law Offices, we have witnessed for ourselves the significant impact that filing for bankruptcy can have on those who have run out of options.
The main motivation for why people file for bankruptcy is because their debts are so high that their earnings do not enable them to pay it down in a reasonable manner. But certain debts are dischargeable, and others are not. For instance, medical debt, credit card debt, and other unsecured loans could be eliminated after declaring bankruptcy. Debts such as child support, student loans, or taxes are not dischargeable under bankruptcy. After speaking with an attorney about your situation, they can let you know which debts will be eradicated and which will stay.
After declaring bankruptcy, federal law does not allow creditors to contact you in any way. Foreclosures, repossessions, garnishments, and lawsuits will stop right away. However, you won’t be completely free of debt responsibility yet, since it depends on which types of secured and unsecured debts you have. But bankruptcy does give you the time you need to develop an approach to deal with your debts, whether that is through liquidation of your assets or establishing an affordable repayment plan. If you are seriously considering filing for bankruptcy, we suggest meeting with a Surprise bankruptcy attorney before moving forward.
Keep Property and Assets
There is a common perspective that bankruptcy will rid you of all your possessions, but this is not fact. The bankruptcy code exempts vehicles, housing, clothing, and furniture from liquidating, while protecting your life insurance policy and retirement account. There are some bankruptcy chapters that will liquidate your assets to pay back creditors, but if that doesn’t work for you, you can choose to partake in a repayment plan instead. A repayment plan would have to be followed for several years and the amounts would vary based on your earnings. The remaining amount you owe may be discharged once you have finished the 3-5 repayment term.
Our Law Offices
The team at Wright Law Offices understands how much debts can affect your life. Many debtors feel pressure everyday knowing how much they owe but aren’t realistically able to pay them back. The weight of personal debts can affect one’s mental health, perspective, and hope for the future. If you are struggling with debts, please consider taking us up on our offer for a consultation. Once a Surprise bankruptcy attorney learns more about your individual circumstances, we can guide you to the next step. Call today.