When you file for bankruptcy in Arizona, your personal information is protected; the social stigma most fear when filing just isn’t there. Even so, bankruptcy is becoming less and less stigmatized. We live in a society where a small debt can, through soaring interest rates and hidden costs, multiply exponentially through no fault of the debtor. University costs are high, medical costs are higher, and credit cards are often presented as a simple and pain-free solution to managing your costs. The Phoenix bankruptcy lawyers at EZ Legal Fees by WantAFreshStart understand what you’re going through and are here to help.
That said, these things do not stop many people from condemning themselves for getting into a situation in which filing for bankruptcy may be a pressing reality. Following are a few ways bankruptcy can be used to right previous financial mistakes and oversights, as well as some information that may help you be kinder to yourself during this potentially stressful decision process.
Bankruptcy is Common
Every year, thousands of people across the U.S. file for bankruptcy. A good generalization keeps the percentage of citizens hoping to eliminate their debt in this fashion right around ten percent, meaning statistically around one in every ten people you meet have, at some point, filed. Bankruptcy cases hit an all-time high in 2011, with nearly 1.4 million people filing. This spike was due, in large part, to the impact of the recession on the economy and the housing market. Many hard-working, successful people were driven deep into debt because their business experienced a lag or they were unable to capitalize on their existing assets.
The Most Common Reasons People File Are Highly Principled
The main reason people file for bankruptcy in Arizona is to assist them in paying medical costs, with more than 46 percent of bankruptcies filed for this reason, on average. If an insurance company denies a claim, the costs of treatment are left on the shoulders of those who are ill or on their families. A ride in an ambulance can cost more than $1,000. A single x-ray can cost significantly more than that. Needless to say, if a major health event occurs and insurance is unable to fund the treatment, the costs can be insurmountable. Moreover, poor health impacts the ability to earn, which causes debt to accrue even quicker. If this sounds familiar, you may want to speak with a compassionate Phoenix bankruptcy lawyer, who can help you determine the best solution for your particular financial situation.
It Is Easy for Debt to Build Up
Once an initial debt is incurred, it is easy for additional costs to pile on. With an interest-bearing debt in particular, just living your daily life becomes slightly more challenging, as the costs against you begin to accumulate. While it is, of course, possible to live a life entirely free of debt, if a costly circumstance arises that demands immediate payment, living debt-free can become astronomically more difficult.
A single lump payment on a credit card to cover a large cost can start a chain reaction that will leave you spending hundreds monthly, just to remain current. If another unanticipated large cost occurs, things begin to spiral even more. Therefore, it is important to be gentle with yourself when considering your financial options. The vast majority of people considering bankruptcy are not doing so because of irresponsible decisions. No one chooses to have money problems, and many face them due to unavoidable circumstances.
By Considering Bankruptcy, You Are Being Proactive
Our Phoenix bankruptcy attorneys know it is possible to sit on your debt for years. Many have avoided creditors and used tactics to remove themselves from taking responsibility for their finances; however, filing for bankruptcy is anything but an avoidance tactic. By considering bankruptcy in Arizona, you can confront your debt head-on, taking control of your finances and getting yourself away from the struggle debt can bring. You are thinking of your future. You are giving yourself the opportunity to rebuild. And for that, you are entitled to accolades. Contact our legal offices for help.