Due to unforeseen economic difficulties arising from sudden unemployment, excessive medical bills, an expensive divorce or other hardships, Arizona residents often find it necessary to file for bankruptcy. Most people only need to file bankruptcy once in their life. But when additional, financially devastating events occur following the completion of one bankruptcy, the necessity to file another one may be inevitable.
As a resident of Arizona, you are legally permitted to file for Chapter 7 bankruptcy every six years following the filing date of the last bankruptcy. Chapter 7 allows discharge of most debts owed by someone filing for this bankruptcy, with the exception of child support, student loans, tax debts and alimony. Usually, a person files Chapter 7 when they have amassed large credit card debts burdened by high interest rates or incurred astronomical medical bills.
Chapter 13 bankruptcy can be filed at any time under bankruptcy law. This law allows Arizona residents an opportunity to prevent home foreclosures by rescheduling debts in order to make lower payments. By avoiding debt discharge with a Chapter 13, credit scores are not as negatively affected as they are in a Chapter 7 bankruptcy. Because it is similar to debt consolidation and permits debtors to work with the creditors they owe, a Chapter 13 bankruptcy can be filed when income availability changes due to health reasons or unemployment.
Although filing more than one Chapter 13 is not unusual, repeated filings of Chapter 7 may be unsuccessful due to judges frowning upon people who engage in abusing bankruptcy laws by repeatedly filing for bankruptcy. However, when someone suddenly becomes buried under unexpected medical expenses, filing another Chapter 7 bankruptcy may be the only way out of such a catastrophic financial situation.
If you are experiencing a situation where bankruptcy seems like the only hope, don’t hesitate to contact a caring and professional Tucson, Arizona bankruptcy attorney who can offer expert advice and assist you in overcoming your financial burdens.