Bankruptcy Lawyer Tempe, AZ
If you are having trouble keeping up with bills and are considering filing for bankruptcy, it is recommended that you meet with a Tempe, AZ bankruptcy lawyer as soon as possible. Bankruptcy is the legal process of allowing you to wipe out some or all of your debts and obtain a fresh start. Filing for bankruptcy can halt legal actions against you and stop a foreclosure. Creditors are not allowed to pester you for payments, which gives you more room to organize your finances and experience the benefits of bankruptcy. But there are some things you must know before taking this step, as it won’t solve all of your problems but it can be helpful for those in true need. If you want to know more about filing for bankruptcy, contact Wright Law Offices today.
The 2 Most Common Chapters
There are six bankruptcy chapters you can choose from, but the most commonly used are Chapter 13 bankruptcy and Chapter 7 bankruptcy. Most individuals or businesses fall under these two chapters. But you will want to consult with a lawyer to help you make the right decision. Chapter 7 bankruptcy, also called liquidation bankruptcy, is simple to file for and takes less time overall to complete. Most people who file for this chapter can eliminate most of their unsecured debts, like medical bills or credit cards, without being required to pay them back through a repayment plan. But in exchange, some property may need to be sold to pay your creditors. Ultimately, Chapter 7 is ideal if you have little to no assets. By comparison, Chapter 13 is for those with consistent income and choose to pay back their debts through a repayment plan but are not required to liquidate their property.
Be Mindful of Spending
Even though it may be tempting, try not to accrue new debts the month or two before filing for bankruptcy. This is because your creditors may object to your bankruptcy discharge request on the basis of fraud if they notice that you racked up debts shortly before filing for bankruptcy. This can jeopardize how your case is treated by creditors and can make it more difficult to get rid of debts that you are unable to pay. If you are using your credit cards for necessities of living and do not see an increase in your earnings in the near future, then we urge you to contact a Tempe bankruptcy lawyer as soon as you can. We can let you know if your situation warrants filing for bankruptcy and ensure that you file for the correct bankruptcy chapter. In the meantime, be mindful of your spending and refrain from making large, luxurious purchases shortly before filing.
A Tempe bankruptcy lawyer can empathize with the emotional turmoil and mental weight that financial troubles can have on someone. The fact that you are considering getting help is a great step towards finding the solutions that will work for you. If you would like to schedule an appointment so we can learn how to best assist you, contact the Wright Law Offices at your next convenience.