Unemployment Bankruptcy Attorney in Phoenix
If you lost your job and considering bankruptcy, call a Phoenix bankruptcy lawyer at Hilltop Law Firm at (602) 466-9631.
Protecting Your Financial Interests During Unemployment in Phoenix
Losing a job can be overwhelming as costs and unpaid bills accumulate, leading to growing debt and harassment from creditors. As a result, prompt addressing is crucial for stemming the tide of expenses and mounting debts.
Filing for bankruptcy is one method of taking control over your finances upon unemployment. Bankruptcy can offer a fresh financial start by protecting against creditor actions, allowing individuals to restructure debts, and warding off legal proceedings for collecting debts.
If you have recently lost a job, consult an experienced Arizona bankruptcy attorney at Hilltop Law Firm. Our Phoenix team is dedicated to delivering legal solutions that are specifically tailored to your circumstances. To learn more about our services, call us at (602) 466-9631 for a free consultation.
Types of Bankruptcy Relevant to Job Loss/Unemployment
Chapter 7 Bankruptcy
Under Chapter 7 bankruptcy, you can eliminate unsecured debts such as credit card and medical bills. To be eligible to file Chapter 7 bankruptcy, the bankruptcy court will use the “means test” to evaluate the amount of income you bring in against the average income of individuals in your area, factoring things like whether you have a family to support. The court will also consider what assets you have.
Chapter 13 Bankruptcy
Alternatively, Chapter 13 bankruptcy involves creating a plan to restructure your debt. Similarly, the court will examine your financial means and organize a schedule for repaying your debt over the next three to five years. Chapter 13 bankruptcy typically involves consolidating your debt, the payment of which is distributed to creditors.
Typically, Chapter 13 bankruptcy is inappropriate for situations involving unemployment because the debtor has no income from which they can repay their creditors. Instead, Chapter 13 makes more sense for individuals who want to protect a home from foreclosure.
Steps for Filing Bankruptcy
Filing for bankruptcy is a significant process involving several steps:
- Assessing your income
- Itemizing expenses
- Listing assets and property
- Itemizing secure and unsecured debts
- Determining the appropriate type of bankruptcy, such as between Chapter 7 and Chapter 13
- Credit counseling courses
- Preparing the bankruptcy filing
- Filing the bankruptcy petition
Protecting Your Assets and Rights
Asset protection is crucial during bankruptcy. However, the type of bankruptcy may determine which method of asset is appropriate. One of the key methods of asset protection involves classifying assets under state or federal bankruptcy exemptions, such as:
- Homestead exemptions
- Personal property exemptions
- Vehicle exemptions
- Any property for up to a certain dollar amount (wildcard exemptions)
- Retirement account exemptions
- Trade tools and equipment exemptions
- Public benefit exemptions
It is crucial to educate oneself about the pros and cons of bankruptcy. A qualified Phoenix, AZ bankruptcy lawyer with extensive experience can provide an objective analysis of the benefits and disadvantages involved in filing for bankruptcy for your particular situation.
The Role of a Phoenix Bankruptcy Lawyer
It is vital when dealing with communications from creditors demanding payment can be stressful and overwhelming. Thankfully, your bankruptcy attorney can take charge of communicating with creditors, alleviating the burden of directly interacting with them.
It is important to understand that each person has unique financial circumstances, and there is no one-size-fits-all solution. Your unemployment bankruptcy lawyer can assess your situation and craft a bankruptcy plan of action that is tailored to your specific needs. Whether it’s Chapter 7 or Chapter 13 bankruptcy, your attorney will guide you through the process.
Contact Us for a Free Consultation
Hilltop Law Firm team in Phoenix, Arizona, has the knowledge and resources to advocate effectively for your financial interests. Head attorney Cy T. Hainey has over a decade of legal and banking experience and is committed to delivering solutions with the best possible outcome.
Reach out to us at (602) 466-9631 for a free consultation today.