What are Some Misconceptions About Filing Bankruptcy in Arizona?
If you are facing financial difficulty, you are probably wondering where to turn. You are considering bankruptcy, but you are afraid you will lose your home and car. Let’s clear some misconceptions about filing bankruptcy in Arizona. When you file bankruptcy, you might be able to keep your house and car. Many bankruptcy filers do keep both those things and often, bankruptcy is filed to save those possessions. In Arizona, you are allowed an exemption of as much as $150,000 equity in your home and as much as $5,000 equity in your car for a single individual. For married persons it is up to $10,000 equity in one or two vehicles. If your payments are current and you remain current on your payments, these assets can usually be kept in an Arizona Chapter 7 Bankruptcy filing. If you are behind on payments, you can file a Chapter 13 bankruptcy in Arizona and make the payments through the plan.
What Are Some Other Misconceptions About Filing Bankruptcy?
There are several other misconceptions about filing bankruptcy in Arizona. Sometimes people believe that if they file bankruptcy, someone will come out to their house and go through their things. This is not true. Usually, no one will visit your home. You list your possessions on your bankruptcy schedule under oath. Sometimes people are afraid that if they file bankruptcy they will not be able to finance a car again. However, that is far from the truth. Often, after a Chapter 7 bankruptcy has been discharged, you will find it easier to finance a car. Your debt to income ratio has improved and you cannot refile bankruptcy in Arizona for at least six years. The same goes for credit cards. While some people believe a bankruptcy will prevent getting credit cards in the future, that is not true. Clients often get credit card offers in the mail right after their Chapter 7 bankruptcy discharge. You can get a secured credit card and work toward rebuilding your credit as well.
A Major Misconception – Filing Bankruptcy in Arizona is Easy
All aspects of the legal system are complicated with regulations, laws, and rules in place for every legal matter. Bankruptcy is not exempt from all these guidelines. Your creditors have knowledgeable legal counsel that is ready to fight you. If you want to be successful with your bankruptcy filing, you will need to enlist the help of an Arizona bankruptcy attorney. Both Chapter 13 and Chapter 7 bankruptcy can be challenging. Statistics show that most clients who attempt to go through the bankruptcy process without an attorney do not successfully complete the process. This is even more true when it comes to Arizona Chapter 13 bankruptcies.
Do All My Bills Have to Be Delinquent to File Arizona Bankruptcy?
Some people believe that to file a bankruptcy they must be behind on all their bills. This is not accurate. You can file bankruptcy even if all your debts are current. You might realize that you are about to face a financial downfall. As an example, you are taking cash advances on one card to pay another card’s payment. The earlier you file, the better off you will be in the long run. You can get your issues resolved way ahead of time. Don’t risk getting in a dangerous situation where foreclosure or repossession become a real threat.
When Should I Speak With An Arizona Bankruptcy Attorney?
As soon as you realize you are facing financial troubles, you should consult with an Arizona bankruptcy attorney. The lawyer will review your case and determine if bankruptcy is right for you. Also, the attorney will go over the different kinds of bankruptcy, and help you determine the best route.