Debt Settlement Lawyers
How Do I Repair My Credit After Filing Bankruptcy?
A lot of clients I meet with assume that filing bankruptcy will destroy their credit and they will never be able to obtain a loan. This is a bankruptcy myth. Initially your credit score will drop due to your bankruptcy filing; however, most of my clients see an improvement in their credit score within 12 months of filing. This is due to the fact that when you fall behind on your bills your creditors can report your delinquency each month to the credit bureaus, causing your credit score to continuously drop. On the other hand when you file bankruptcy your…
Debt Settlement Companies: Debt Settlement or Bankruptcy?
I often consult with clients who have attempted debt settlement prior to our meeting. I’m sure debt settlement has helped many people resolve their debt issues, I only see cases where debt settlement was unsuccessful. Most of the time these clients are in a worse position then they were prior to attempting debt settlement and are left with little choice but to file bankruptcy. Debt settlement companies are private, for profit companies that offer to negotiate with your creditors on your behalf in an attempt to reduce the amount you owe. Some companies charge a fee per settlement while others…
How Do I Come Up with the Money to Pay for a Bankruptcy Attorney in Arizona?
Most prospective clients want to know how much my fees are and whether we have payment plans. Although we offer payment plans, like most bankruptcy attorneys in Arizona, legal fees must be paid prior to filing. Naturally the next question is “how am I supposed to pay bankruptcy fees when I cannot pay my bills?” Below are some suggestions as to how to obtain money to pay your bankruptcy attorney. Stop Paying Your Credit Cards You should not use a credit card to pay for bankruptcy. However, if you’re committed to filing bankruptcy I recommend stop paying your credit cards…
Can I Cancel or Dismiss My Chapter 7 Bankruptcy?
Sometimes after filing people realize they do not wish to proceed with Chapter 7 bankruptcy and would like their case dismissed. You may wondering why would anyone want their Chapter 7 bankruptcy dismissed? There are a variety of reasons as to why debtors want their case dismissed, often times due to a change in circumstances that no longer make bankruptcy the most favorable path. One example is if a debtor received an inheritance after filing and did not want to turn it over to the bankruptcy trustee. Once your Chapter 7 bankruptcy is filed it can be difficult to have…
How Fast Can You File Bankruptcy? Filing Emergency Bankruptcy.
I receive a number of calls from potential clients who are about to lose their home, are having their wages garnished, or are facing some other imminent collection activity. Almost always the first question is, “how long does it take to file bankruptcy?” Filing emergency bankruptcy in either Chapter 7 or Chapter 13 can take only a matter of minutes, but it’s often discouraged unless it is truly an emergency for which filing is necessary. For example, an emergency filing may be warranted if your home is going into foreclosure in a few days or even hours. However, if your…
Can I Use My Credit Card(s) Prior To Filing Bankruptcy?
Often clients contemplating filing Chapter 7 or Chapter 13 bankruptcy ask “Can I continue to use my credit cards prior to filing bankruptcy?” My answer is always to stop using your credit cards if you are going to be filing bankruptcy in the foreseeable future. If you have already made purchases on credit and need to file bankruptcy immediately you can anticipate having to pay back certain charges. (a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt— (I) consumer debts owed to a…
Can I File Bankruptcy Without My Spouse in Arizona?
Clients often wish to file bankruptcy alone while married to protect the other spouses credit. Although it is possible for one spouse to file bankruptcy without the other in the state of Arizona, there may be consequences for doing so that need to be considered. Arizona is a community property state which means that most assets acquired during the marriage are community assets and most debts incurred during the marriage are community debts. As a result, if your spouse obtains a credit card without your knowledge you are still responsible for this debt. The biggest issue with filing individually while…
Your Pet and Bankruptcy
What happens to your pet in bankruptcy? Pets can be very near and dear to our hearts through trying times. Many people even view them as family members. The question is – does the law view them the same way? In bankruptcy, your personal assets and expenses must be disclosed whether you are filing under Chapter 13 or Chapter 7. In a Chapter 7 bankruptcy, the bankruptcy trustee will then look at all the property you own and will determine how to use your non-exempt assets to pay back creditors. A Chapter 13 bankruptcy trustee is similar, except you will…
Tax Refunds and Bankruptcy
This time of year I often advise clients to wait to file Chapter 7 bankruptcy until you file your taxes, receive your tax refund, and spend it on necessary and reasonable expenses. Depending upon when you file, the bankruptcy trustee is going to take some or all of your tax refund to pay your creditors. With that said, sometimes clients come into my office facing an imminent collection activity such as wage garnishment or foreclosure. In these situations you must weigh the amount you will lose by not filing (wages garnished until filing, loss of home) versus the portion of…
Common Myths About Filing for Bankruptcy
Bankruptcy is a form of debt relief which entails a legal process that enables debtors to wipe out their debts or consolidate and repay them. It is therefore a beneficial and powerful tool in case you find yourself in some sort of financial woe. However, it is an intricate process which has been complicated further by numerous myths that surround this particular realm of the law. In this article we will delineate fact from fiction as they pertain to bankruptcy law. Below are several myths that we aim to debunk: Myth #1: Only financially irresponsible people file for bankruptcy Totally…
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