Deciding whether to file bankruptcy is difficult. There is no “bright line” test that signals when a bankruptcy is the right solution to money problems. For many people, it is not one issue, but a combination of things that make filing bankruptcy the right choice.
Some of the most common signs that a bankruptcy filing should be considered are:
- Your wages are garnished or your bank account is attached
- You are unable to make minimum payments to your creditors, or you struggle to make minimum payments each month
- Debt collectors harass you at home or at work
- You have to pick and choose what creditors to pay on-time
- You are caught up in a cycle of payday loans
- You are paying off large unsecured debts (for example, credit card debts, medical bills)
- You are at behind on your car or house payments and at risk for repossession or foreclosure
- You are being sued for a debt
- The IRS is threatening collection action
- The stress of your money problems is affecting your health or sleep
If you are experiencing one or more of these debt problems, a bankruptcy filing can improve your financial situation. Once your debts are out of control and there is no realistic way to pay the debts, filing bankruptcy may be the best option.
Whether to file bankruptcy is a decision that is unique to your personal situation. If you are struggling with debt, a bankruptcy filing stops collection action and provides breathing room and puts you back in charge of your finances. The bankruptcy laws offer the choice of a repayment plan with Chapter 13 or the outright discharge of most debts under Chapter 7. In most cases there is no payment to unsecured creditors and you do not lose any property.
If you are experiencing a persistent debt problem, bankruptcy may be the right choice for you. You can learn more by calling us at 480-478-0323 to discuss your situation with an experienced Arizona bankruptcy attorney. I have been representing people throughout the Mesa Tempe Chandler area in the Phoenix Bankruptcy Court since 1986 and will meet with you without charge or obligation.
