The Main Benefits of Filing for Bankruptcy in Arizona
Contact a Phoenix, AZ bankruptcy lawyer at Hilltop Law firm to find out more about the benefits of filing for bankruptcy.
Helping People Take Control of Their Finances in Phoenix, AZ
Amidst the financial challenges that the people of Arizona face, the prospect of bankruptcy emerges as a viable way to regain control over one's financial future. At Hilltop Law Firm, we are committed to guiding you through your financial issues and helping you pursue a fresh start.
With a legacy of family ownership and operation, Hilltop Law Firm in Phoenix stands ready to assist you in managing your financial and estate planning distress. With almost a decade of legal experience and two years of banking experience, head attorney Cy Hainey can guide you through some of the most difficult challenges facing you and your family. Let us show you the way toward financial stability.
Call (602) 466-9631 to schedule a free consultation today.
Immediate Relief from Debt Collection
Once you file for bankruptcy, an automatic stay is put into effect, which provides consumers with the following protections:
- Halting Creditor Actions: Bankruptcy's automatic stay shields you from creditor collection actions, giving you time to review options for financial recovery.
- Safeguarding Against Wage Garnishments: Automatic stay prevents wage garnishments, giving you the power to keep all your hard-earned income for more important financial needs.
- Preserving Against Repossession: The automatic stay can stop repossession of your property, giving you time to manage your finances and avoid losing important assets like your car.
- Shielding Against Foreclosure: The automatic stay can halt foreclosures and give you time to explore options for saving your home or finding stable housing.
Debt Discharge and Fresh Start
Discharge can make some debts unenforceable by law, allowing you to start fresh financially. Filing a bankruptcy petition is necessary to take advantage of debt discharge in bankruptcy. Chapter 7 or Chapter 13 bankruptcy can both provide routes to debt discharge. You should be aware that some debts cannot be discharged in bankruptcy, including child support, tax debts, and student loans.
Debt discharge in bankruptcy lets you focus on improving your credit and building a solid financial foundation now that your discharged debts are lifted. Your Phoenix bankruptcy lawyer can help you determine which debts are eligible for discharge.
Preserving Assets (Chapter 7)
If you're struggling with overwhelming debt, you may want to consider Chapter 7 bankruptcy to get a second chance at building your financial welfare. Benefits of Chapter 7 include:
- Asset Liquidation and Debt Discharge: Chapter 7 bankruptcy examines your finances to sell assets and pay off debts. Qualifying debts are eliminated, giving a fresh financial start.
- Speedy Resolution: Chapter 7 bankruptcy is a quick process that takes only a few months and gives you the opportunity to rebuild your financial future.
- Homestead Exemption: The homestead exemption protects your home from being taken away during bankruptcy.
- Vehicle Exemption: Preserving Transportation: The vehicle exemption protects your essential means of transportation for work, family, and daily activities. It acknowledges the crucial role of a vehicle in maintaining stability in your life.
- Personal Property Exemptions: Retaining Essentials: You can keep important personal items like clothes, furniture, appliances, and work tools. These exemptions cover necessities for daily life and work.
Chapter 7 bankruptcy filers may need to take a debtor education course to learn how to manage their finances more efficiently after the process.
Structured Repayment Plans (Chapter 13)
Chapter 13 bankruptcy can help you get out of overwhelming debt by providing a structured repayment plan that helps you regain control of your finances and protect your assets. Some of the key benefits of Chapter 13 bankruptcy are:
- Structured Repayment: Chapter 13 bankruptcy allows for a personalized repayment plan lasting three to five years, helping debtors pay off outstanding debts gradually.
- Catching Up on Missed Payments: Chapter 13 helps debtors catch up on missed payments for secured debts by allocating a portion of their disposable income towards arrears.
- Asset Retention: The Chapter 13 repayment plan allows individuals to keep their assets, including homes and cars, by making regular payments.
- Fending Off Foreclosure and Repossession: The Chapter 13 repayment plan helps debtors avoid foreclosure or repossession by making consistent payments and restoring financial stability while keeping their homes and vehicles.
- Reduction of Unsecured Debt: Chapter 7 liquidates assets and discharges unsecured debts, while Chapter 13's repayment plan can reduce the total amount of unsecured debt to be paid. This can bring financial relief and a simpler path to recovery.
- Commitment to Financial Healing: Chapter 13 requires a commitment to a repayment plan, showing dedication to resolving debts and fostering financial responsibility.
In Chapter 13 bankruptcy, the discharge comes after successfully completing a structured repayment plan.
Contact Hilltop Law Firm for Exceptional Legal Counsel
Don't wait – overcome your financial troubles with legal assistance from Hilltop Law Firm. Our Phoenix legal team is well-equipped to help you navigate the twists and turns of bankruptcy, ensuring you reach the peak of financial freedom.
Let us guide you towards a better financial future. Call us at (602) 466-9631 to begin your journey today.