Bankruptcy Lawyer Prescott, AZ

As a Prescott, AZ bankruptcy lawyer would tell you, needing to file for bankruptcy due to financial stress should not be seen as a failure. In fact, searching for resources that will help you find financial wellness must not be undervalued. Anyone who wants more for themselves and their monetary future may turn to bankruptcy as a reliable tool that sets them forward instead of backwards. At Wright Law Offices, we have helped many people overcome financial hardship and find relief through bankruptcy. Don’t hesitate to contact us today.

Chapter 7 Bankruptcy

Sometimes referred to as liquidation bankruptcy, Chapter 7 is the most commonly filed chapter by individuals. It does not entail a repayment plan but instead uses the debtor’s assets to liquidate and then pay off amounts owed to creditors. Debtors who would rather relinquish property to amend debts may prefer to file for Chapter 7. 

Chapter 13 Bankruptcy

Individuals who have a way to consistently make money but are not able to afford their debts can find relief through Chapter 13 bankruptcy. Over the course of 3-5 years, a debtor submits payments for their debts in an amount that is feasible. Once this duration is over, the remaining of their debts may be discharged. But before proceeding ahead and filing for bankruptcy, a Prescott bankruptcy lawyer suggests consulting with them to make sure it is the right time and choice for you.

Chapter 11 Bankruptcy

Generally, Chapter 11 is utilized to help a corporation or business reorganize their debts. Businesses have to create a plan for paying off their debt while continuing normal operation. The plans are designed to help a business stay functioning while following through with the bankruptcy process. 

Chapter 12 Bankruptcy

Family farmers and fishermen who want to avoid selling their assets or foreclosing on a property can file for Chapter 12 bankruptcy. This is a repayment plan type of bankruptcy that is more flexible and has higher limits for debts compared to Chapter 13 bankruptcy. Due to the fluctuating nature of fishing and farming, this chapter provides a way for these specific workers to obtain relief from financial trouble.

Chapter 15 Bankruptcy

Cases that involve claimants, assets, or debtors from more than one country can benefit from Chapter 15 bankruptcy. This chapter helps protect the debtor’s asset value while trying to support financially strained companies. Chapter 15 established a foundation for handling international investments, trades, and business. 

Chapter 9 Bankruptcy

This bankruptcy chapter is helpful for towns, school districts, and cities that need to reorganize their finances to pay back what they owe. Chapter 9 entails a repayment plan and can offer municipality protection for areas that are financially distressed. Through this chapter creditors can negotiate and develop a plan for adjusting debts.

Making The Decision To Move Forward With Bankruptcy

A trusted Prescott, AZ bankruptcy lawyer knows that the decision to file for bankruptcy is a significant one and often comes after considerable deliberation, stress, and financial hardship. It’s a choice that can provide relief from insurmountable debt, but it also carries consequences that can impact one’s financial and personal life for years. For help, contact Wright Law Offices today.

  1. Self-Assessment and Reality Check: Begin by taking an honest assessment of your financial situation. Catalog all your debts, including credit cards, personal loans, medical bills, mortgages, and any other obligations. Simultaneously, list down all your assets and monthly income. If your liabilities far outweigh your assets and you find it increasingly challenging to meet monthly payments, bankruptcy might be a solution worth considering.
  2. Understand the Types of Bankruptcy: In the U.S., the two most common types of personal bankruptcy are Chapter 7 and Chapter 13. Chapter 7 involves liquidating assets to pay off debts, after which most remaining debts are discharged. Chapter 13, on the other hand, involves setting up a repayment plan, usually lasting three to five years, to pay back all or a portion of the debt. Research both thoroughly to determine which, if any, might be appropriate for your circumstances.
  3. Seek Legal Advice: Consulting with a Prescott bankruptcy lawyer is essential. They can offer specific insights into how the process would impact you, the potential for discharging your debts, and the consequences you’d face post-bankruptcy. This legal perspective is invaluable for making an informed decision.
  4. Consider the Long-term Implications: Bankruptcy can remain on your credit report for seven to ten years, depending on the type. This can affect your ability to secure loans, mortgages, or even certain jobs. Furthermore, while bankruptcy can discharge many types of debt, some—like student loans, alimony, and certain taxes—generally cannot be eliminated.
  5. Explore Alternatives: Before committing to bankruptcy, explore all other viable options. These might include:
    • Debt consolidation: Taking one large loan to pay off smaller ones, ideally with a lower interest rate.
    • Debt settlement: Negotiating with creditors to accept a reduced lump-sum payment.
    • Credit counseling: Working with agencies to create a debt management plan, which often involves negotiated lower interest rates and fees.
  6. Pre-Bankruptcy Credit Counseling: If you decide that bankruptcy is the way forward, you will need to undergo credit counseling with an agency approved by the U.S. Trustee’s office. This step is mandatory and will provide further insights into managing finances and the implications of bankruptcy.
  7. Prepare for Life Post-Bankruptcy: If you choose to file, understand that there’s life after bankruptcy. Many people see it as a fresh start. You’ll need to rebuild your credit, live within a budget, and perhaps make some lifestyle adjustments. But with discipline and determination, it’s entirely possible to recover and even thrive.

The decision to file for bankruptcy should never be taken lightly. It requires a comprehensive understanding of your financial predicament, the legal implications, and a commitment to rebuilding your financial future. With the right information, support, and mindset, you can navigate this challenging decision and set yourself on a path toward financial recovery and stability. Call Wright Law Offices to see how our Prescott bankruptcy lawyer can help with your bankruptcy needs and questions.

Bankruptcy Infographic

Making The Decision To Move Forward With Bankruptcy Infographic

Prescott Bankruptcy Lawyer FAQs

When faced with the possibility of bankruptcy, our Prescott, AZ bankruptcy lawyer can be an invaluable aid. The surge of questions and concerns about the best path forward for you can be overwhelming. Here, we address some frequently asked questions that can provide clarity to those considering this significant financial step, but there is much more to consider when considering filing for bankruptcy. To fully understand the implications and process of filing for bankruptcy and to receive professional and experienced help, contact Wright Law Offices today.

What Can I Expect During The Bankruptcy Process?

The bankruptcy process generally starts with a detailed evaluation of your financial situation, which includes an assessment of your debts, assets, income, and expenses. Our Prescott bankruptcy lawyer will guide you through the legal requirements, such as credit counseling, help you complete and file necessary paperwork, and represent you during meetings or court appearances. They will also negotiate with creditors on your behalf and provide advice on the best type of bankruptcy for your specific circumstances.

How Do I Know If I Need To File For Bankruptcy?

Deciding to file for bankruptcy is a personal decision that depends on various factors, including the amount of debt you owe, your ability to repay it, and the types of debt you carry. If you’re facing lawsuits from creditors, wage garnishments, foreclosure, or simply can’t see a way to get out from under your debt burden, bankruptcy might offer relief. Consulting with a bankruptcy lawyer can give you an individual assessment to determine if bankruptcy is a suitable option for you.

Will I Lose All My Property If I File For Bankruptcy?

Many people fear that they will lose everything if they file for bankruptcy, but that’s not necessarily the case. Bankruptcy laws include exemptions that protect certain assets, like a portion of the equity in your home, your vehicle up to a certain value, retirement accounts, and household goods. The goal of bankruptcy is to give you a fresh start, not to leave you destitute. Consulting with an experienced bankruptcy lawyer will help you understand which exemptions apply to you and how to maximize the assets you can keep.

Can Bankruptcy Discharge All Types Of Debt?

While bankruptcy can discharge many types of debt, such as credit card debt, medical bills, and personal loans, there are some exceptions. Obligations like most student loans, child support, alimony, and certain tax debts typically aren’t dischargeable in bankruptcy. Our Prescott bankruptcy lawyer will review your debts and advise you on which ones you can expect to be discharged.

How Long Does Bankruptcy Stay On My Credit?

A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while a Chapter 13 bankruptcy stays for up to 7 years. However, the impact on your credit lessens over time, and you can begin rebuilding credit right after the bankruptcy discharge. You can start by opening a secured credit card, making timely payments, and keeping your credit utilization low. Over time, consistent financial responsibility will improve your credit score.

The Importance Of Legal Aid

We understand the weight of the decision to file for bankruptcy, and we’re here to provide the support and guidance you need. When faced with the possibility of something as serious as bankruptcy, having professional, experienced legal aid is crucial to ensure that you are making the best decision and working towards the best possible outcome for your financial future.

If you’re grappling with debt and considering bankruptcy as a way out, reach out to our experienced team for help. We pride ourselves on offering compassionate, comprehensive advice tailored to your unique situation. Don’t let the burden of debt control your life any longer. Contact Wright Law Offices today, and let us help you get back on the path to financial stability.

Wright Law Offices

Despite bankruptcy being misconstrued as something to be ashamed about, there is no embarrassment in wanting better for yourself. If you have questions about bankruptcy or are ready to file today, reach out to a Prescott bankruptcy lawyer as soon as you can. At Wright Law Offices, we are dedicated to helping you secure a stable financial future.