Phoenix Credit Card Debt Bankruptcy Lawyers
Dedicated Legal Advocates for Your Financial Needs in Phoenix
When credit card debt gets out of control, the stress and feeling overwhelmed can make taking action difficult. Sometimes unanticipated expenses, such as the cost of medical treatment or unforeseen repairs to your house or car, can snowball into seemingly unmanageable debt.
In cases involving mounting credit card debt, filing for bankruptcy can offer individuals a fresh start. At Hilltop Law Firm, we provide compassionate representation for those seeking answers to their financial issues. Our Phoenix bankruptcy lawyer will be by your side for each step of the process, so you can confidently regain control of your finances and future.
Call a lawyer at Hilltop Law Firm at (602) 466-9631 for a free consultation today.
Credit Card Debt and Bankruptcy
Credit card debt can swiftly grow out of control, especially when unanticipated costs paired with high-interest rates are involved. Furthermore, late fees and aggressive collection efforts can be stressful and mentally draining. Filing for bankruptcy can generally help with taking control of credit card debt by either discharging such debt or preventing an individual from assuming more debt.
Chapter 7 & 13 Bankruptcy
Chapter 7 bankruptcy involves debt liquidation, allowing individuals to discharge credit card debt without the need for a repayment plan. Individuals can get a fresh start by wiping out unsecured debts, letting them restart the financial journey with a strong foundation. Eligibility for filing for Chapter 7 bankruptcy is based on an individual’s financial means, considering income and assets.
In a Chapter 13 bankruptcy situation, your finances and assets are reorganized to better ensure payment of your debt over the course of three to five years. Importantly, Chapter 13 bankruptcy offers better asset protection as you repay your debt.
Pros and Cons of Bankruptcy
Depending on the specific circumstances of your case, bankruptcy may offer you advantages that can help you attack your debt. However, there are also disadvantages associated with bankruptcy to consider.
Some of the advantages of filing for bankruptcy to combat credit card debt include:
- Debt discharge: Chapter 7 bankruptcy can completely wipe out qualifying credit card debt.
- Repayment plan: Chapter 13 lets individuals create a repayment plan they can manage, protecting their assets.
- Halting collection efforts: Bankruptcy initiates a period where creditors may not engage in collection efforts, known as an “automatic stay.”
- Fresh start: The bankruptcy process allows you to rebuild your financial future, often involving credit counseling courses.
Some of the disadvantages of bankruptcy include:
- Credit score: Bankruptcy can have a negative impact on your credit score for several years.
- Limited eligibility: Not everyone may be eligible to take advantage of Chapter 7 bankruptcy.
- Asset exposure: Under Chapter 7, certain assets may be liquidated to pay off your debts.
Frequently Asked Questions (FAQ)
Many people believe the bankruptcy process can be challenging to understand. At Hilltop Law Firm, our legal team is prepared to guide you through the bankruptcy process to help you understand your legal rights. We can help you answer questions such as:
- Can I wipe out my credit card debt? Yes, if you are eligible for Chapter 7 bankruptcy, you may be able to discharge qualifying credit card debts.
- How will bankruptcy affect my credit score? Bankruptcy will negatively impact your credit score for anywhere between seven to ten years. However, you may have a better opportunity to rebuild your credit over time.
- Do I have to sacrifice my assets? Under Chapter 7, assets are liquidated to repay debts. However, some assets are exempt from liquidation, such as your car, your house, etc.
- How can I stop creditor harassment? Filing for bankruptcy results in an automatic stay of legal action from your creditors trying to collect your debts.
How a Phoenix Bankruptcy Attorney Can Help
Navigating the bankruptcy process can be complex, requiring a sophisticated understanding of bankruptcy law. Therefore, if you are thinking of filing for bankruptcy to deal with credit card debt, you should consult an experienced credit card bankruptcy attorney.
Your Phoenix credit card debt bankruptcy lawyer 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.
A qualified 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.
Your Trusted Arizona Bankruptcy Lawyer
Hilltop Law Firm’s 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.