Bankruptcy is a process individuals or businesses can undertake to eliminate certain types of debt. It is a federal court proceeding designed to help with both debt elimination and debt repayment. Bankruptcies generally fall under two categories: reorganization and liquidation and our Phoenix bankruptcy lawyers are well-versed in both types. The reorganization method is used to do just what the name implies; it reorganize the debts you owe and puts a payment plan in place that will allow you to become debt free over the course of three to five years. Liquidation eliminates debts by giving the collectors the ability to liquidate, or sell, certain assets to amend what you owe them.

Bankruptcy Lawyer in Phoenix

Are you ready to stop worrying about how you are going to pay your next bill or which creditor is going to call you next? Work with Want A Fresh Start today. Allow our team to provide you with the insight and guidance you need to make a better financial future for yourself. As a bankruptcy lawyer in Phoenix, with locations available throughout the city, we are happy to help you in a way that fits your needs.

 

Types of Debts

Secured Debt

A secured debt is backed with some sort of collateral. This collateral reduces the risk of the debt for the lender and often comes in the form of property loans. A mortgage, for instance, would be a secured debt with the house acting as the collateral. Were you to default on your mortgage payment, the house could be seized and the lender could, in that way, recover his or her investment.

Both Chapter 7 and Chapter 13 bankruptcy can be used to assist with these types of debts. Chapter 7 gives you the option of allowing for repossession, continuation of payments, or paying the creditor a lump sum. Chapter 13 allows you to make up any missing payments in order to prevent repossession or foreclosure.

Unsecured Debt

This type of debt does not have a piece of property attached to it that can be used as collateral. In an unsecured debt, such as a medical bill or a credit card, the lender cannot repossess anything of yours to regain his or her investment without the court’s permission. Chapter 7 and Chapter 13 bankruptcies in Arizona can also both help with these debts, and a Phoenix bankruptcy lawyer at EZ Legal Fees by WantAFreshStart can show you how.

Chapter 7 will wipe out these debts by the sale or liquidation of any non-exempt property you choose. Chapter 13 allows you to set up a payment plan based on how much the creditors would have received from a Chapter 7 filing, your wages, and the amount of your debt.

Determining Which Type Is Best for You

Your income level, reliability of wages, and amount of debts should be the primary considerations when deciding how to file. Those without steady employment or whose income is significantly less than the sum of their debts may choose to consider Chapter 7. This method will allow your creditors to be paid quickly by using what you have currently in your possession, excluding the assets you’d need to live and work. Chapter 13 is the better option for those whose income to debt ratio is low, as it allows them to manage their debts without foregoing their possessions.

If you have questions about which type of bankruptcy best fits your situation, contact us today. We are experienced Phoenix bankruptcy attorneys dedicated to finding the best solution for you.

Is Bankruptcy the Right Decision for You?

To answer this question, we encourage you to meet with our bankruptcy lawyer in Phoenix to discuss your specific situation. You may benefit from considering filing if:

  • You are behind on your debts.
  • Your home is at risk of foreclosure.
  • A creditor is trying to garnish your wages.
  • You repeatedly face phone calls and harassment from lenders.
  • You know you cannot get out of debt by making minimum payments.

Our legal team will be transparent and open with you about how bankruptcy may work for your needs, if you qualify to file, and what type may be best for your financial future. Our Phoenix bankruptcy attorneys are compassionate – we know just how hard it is for you to face the reality of bankruptcy, but for many of our clients it is that fresh start they need to turn their life around.

What Type of Bankruptcy Is Right for You?

When you meet with our attorneys, we will discuss the types of bankruptcy available to you and work with you to determine which route may be best for your situation. We work with consumers hoping to file one of these two options.

Chapter 7 Bankruptcy

In this form of bankruptcy, your debt is discharged. You petition the court to ask them to eliminate what you owe to creditors. In exchange, you will relinquish ownership of assets that go above and beyond the Arizona exemptions. These exemptions may help to protect some of the equity in your home, your possessions, and your vehicle.

When filing for Chapter 7 bankruptcy in Arizona, there will be no repayment plan proposed or enacted. Instead, your non-exempt assets will be gathered and liquidated to pay creditors’ claims. This can settle back payments, leaving you free to continue your payments if both parties agree. Another option, if available, would be to give the holder a lump sum to settle the debt entirely.

Once any excessive assets are sold, the rest of your debt is forgiven. With our help, we will minimize any lost assets while also working to pursue a fast discharge of the debts owed.

Chapter 13 Bankruptcy

In this form of bankruptcy, your assets are not sold. Instead, they are recognized to make them easier to repay. With a structured repayment plan that lasts between 3 and 5 years, you are able to repay some of what you owe without creditor harassment. Instead, you will make a payment to the bankruptcy court each month throughout this time.

Also known as a “wage earner’s plan,” Chapter 13 bankruptcy enables individuals with steady and reliable income to develop a debt repayment plan with their creditors over the course of three to five years. The time frame allocated to debtors for repayment depends on income level relative to the debts they owe. Filing for Chapter 13 stops creditor harassment by precluding them from beginning or continuing measures for debt collection during the payment period.

Over time, the bankruptcy court will determine if you are compliant. At the end of the process, the remaining debt is discharged.

Could Filing Bankruptcy Save You Money?

There are many situations where continuing to make minimum payment on debt is an expensive mistake. If you cannot pay off your debt within a few years, that could mean that it will be very expensive to do and throughout that time, you are likely to face numerous hardships and frustrations. The interest that compounds on your credit card debt can be hard to overcome, but our legal team can help you.

When you meet with our bankruptcy lawyer in Phoenix, we will provide you with clear, actionable guidance. That includes:

  • Discuss your current financial situation including how much debt you have and who you owe.
  • Providing you with options to determine the eligibility for filing either form of bankruptcy, and what repayment or discharge may look like to you.
  • Stop creditors from calling and harassing you, freeze all garnishment actions against you, and stop foreclosure immediately.

At Want A Fresh Start, we also offer a few key advantages that not all bankruptcy attorneys in Phoenix can including:

  • Stop wage garnishments the same day for no extra cost to you.
  • You can stop foreclosures and lawsuits immediately.
  • You can make one call to us, learn about your options, and file the same day without any extra cost for doing so.

More so, we are happy to offer insight and guidance to you even if you are not sure if bankruptcy is right for you. When you set up a consultation with our team, we will provide you with transparent information and honest advice. There are some situations where we do not recommend filing bankruptcy – and we will tell you that. When it may benefit you, we will offer options to support your future.

Let Us Help You to Build a Better Financial Future Now: Phoenix Bankruptcy Attorney

If you have any of these types of debts or financial situations, we encourage you to contact us immediately to learn about your legal options and rights to file bankruptcy:

  • Excessive credit card bills – whether they are maxed out or have high interest rates and payments
  • Threats of repossession of your assets
  • Threats of foreclosure on your home
  • Utility foreclosure actions against you
  • Lawsuits filed against you from creditors
  • Past due payments on rent or your mortgage
  • Wage garnishment threats
  • Medical debt you cannot pay
  • Judgements against your for debs

With a consultation with our team, you will learn what your rights are for overcoming these financial challenges. Every situation is vastly different, but it does not matter how you got into this place. Our goal is to provide you with the legal options to get out of it. For more than 20 years, we have been the best bankruptcy lawyer in Arizona and we will continue to fight for your financial wellbeing as well.

Bankruptcy Is the Beginning of Your Financial Health

Do not view bankruptcy in a negative fashion because for many of our clients it is the start of a better financial future. It is an opportunity to move forward with a better potential outcome. There are negative factors to consider with bankruptcy, and our attorneys will discuss the consequences to you based on how it may impact you.

To learn more about what our bankruptcy lawyer in Phoenix can do for you, contact our team immediately. Want A Fresh Start is available to help you 7 days a week.

Phoenix Bankruptcy Law Firm

EZ Legal Fees by WantAFreshStart, LLC Phoenix, AZ

343 W. Roosevelt, First Floor, Phoenix, AZ 85003, United States

  • From Margaret T. Hance Park, head west on W Culver St. toward N 3rd Ave
  • Turn left onto N 5th Ave
  • Turn left onto W Roosevelt St
  • Turn right onto N 4th Ave.
    The destination will be on the left