Bankruptcy Filings Up in Phoenix

Posted on July 31, 2012 by Staff Writer

The month of June saw an increase of bankruptcy filings in the Phoenix metropolitan area, to the highest point in the past nine months. Individual, as well as business, filings have increased steadily in the past four months. The number of filings on the state level line up with the same trend, with May numbers rising steadily from April figures.

The bulk of the filings were for Chapter 7 bankruptcy, in which a business or personal assets (only those which are non-exempt) are liquidated to pay debts and creditors, with debt forgiveness after the proceeds are exhausted. The rest of the filings were primarily Chapter 13, calling for a reorganization of the debtor’s finances to structure repayments to creditors.

Situations that contribute to bankruptcy filings are unemployment and underemployment without cessation. Another issue that impacts figures is increases in foreclosures. Many homeowners file for bankruptcy after receiving notice of impending foreclosure on their homes. The number of foreclosures is directly tied to the number of new bankruptcy filings: as foreclosure numbers increase, bankruptcy filings also increase within one to two months afterwards.

The good news indicated by these numbers is that bankruptcy filings for the Phoenix metropolitan area have leveled off, with the past sixteen months coming in at lower rates than the same months in 2010 and 2011.

Becoming faced with job loss or an inability to secure employment that pays what your financial circumstances require is not an easy situation. For legal and emotional support through this difficult time, contact an empathetic Arizona attorney who specializes in bankruptcy. This expert can assist you in navigating through what can otherwise be a stressful, humiliating and almost impossible turn of events, and can assist with recuperating financially afterward the case is resolved.

Automatic Stay Can Stop Debt Collection in Arizona Bankruptcies

Posted on March 27, 2012 by Staff Writer

If you decide to claim bankruptcy in Arizona, the first step is to file a bankruptcy petition with the Arizona Bankruptcy Court, which is part of the U.S. District Court system. Once this petition for bankruptcy is filed, the court issues an injunction that halts any foreclosures, garnishments, lawsuits, and debt collection activities related to your debts. This “automatic stay” comes as a welcome relief to those who are experiencing financial difficulties and are also dealing with stress of constant creditor harassment and debt-collection activities.

However, it is possible for some creditors to get an exception to this automatic stay, which is done by filing a “Motion for Relief from the Automatic Stay” (and submitting additional documentation) with the court that is handling your Arizona bankruptcy case. You will be notified if any Motion for Relief is filed, and will have a chance to respond to the motion before the court decides whether or not to grant it. If you object to the Motion for Relief, the court may hold a hearing on the matter. If the court decides to grant the Motion for Relief, they will issue an order stating such, of which you’ll receive a copy.

The Arizona Bankruptcy Court advises against proceeding with filing for bankruptcy without the help of a qualified Arizona bankruptcy attorney. If a Motion for Relief from Automatic Stay has been filed in your Arizona bankruptcy claim, it’s even more important to retain the services of a qualified Casa Grande, Arizona bankruptcy lawyer.

(Image courtesy of renjith krishnan)

Bankruptcy and College Financial Aid

Posted on March 20, 2012 by Staff Writer

Studies have shown that college enrollment is at an all-time high, which means that those seeking federal and private financial aid will face increased competition. Parents who have filed for bankruptcy, or who are considering filing for bankruptcy may also wonder – how will bankruptcy affect our ability to obtain financial aid funding for our child? Hopefully, it won’t.

There are two types of student aid funding: federal and private. Federal funds can help pay for higher education through grants and loans. Grants range in the amount given and stipulations for receipt, but the recipient is not required to pay back the amount. Federal loans are given when the recipient meets specifications as stipulated by the type of loan. Usually, the federal government provides low-interest loans and pays the interest while the student is enrolled full-time in an academic program at an approved institution. On the other hand, private loans are given based on a recipient’s or third-party’s credit history. These loans offer market-rate interest rates with various stipulations. Bankruptcy affects each type of student aid in different ways.

How bankruptcy impacts funding for college is not a cut-and-dry issue; each family’s case varies, and bankruptcy laws are complex. Generally speaking, a family’s bankruptcy status will have little to no affect on obtaining federal financial aid. Some types of aid are federally mandated to exclude bankruptcy status when considering a recipient’s eligibility, including Title IV grants and Perkins loans.

However, the effect of a parent’s bankruptcy in regards to private funding can be more complex. In most cases, a parent’s past bankruptcy will have no impact on a student’s eligibility for private funding. In this situation, it’s very beneficial to have an experienced Avondale bankruptcy lawyer handle negotiations with lenders.

Don’t let your bankruptcy impact your family’s education: be informed. For detailed information on how to navigate bankruptcy issues when applying for financial aid, consult a top Avondale, Arizona bankruptcy attorney today.