If you have filed for any sort of bankruptcy, it is a good idea to take serious stock of your spending habits – especially under Chapter 13 bankruptcy. Under Chapter 13, you will be required to make court-mandated payments to eliminate your debts over the course of three to five years. This may mean you will need to minimize your overall spending and efficiently manage costs to allow enough resources to make your payments.
If you filed for Chapter 7 bankruptcy in Arizona, there will be no payment plan, and you will walk out of the process with no debt; however, credit cards will no longer be available, so you will need to learn to work using cash as your sole source of payment. This will mean enhanced budgeting and possibly less wiggle room until your credit recovers. An experienced Phoenix bankruptcy lawyer can help you understand the differences between filing for either Chapter 7 or Chapter 13 and the consequences each has on your finances moving forward.