Bankruptcy Last Resort or Secret Weapon

Deciding to file for bankruptcy is a very personal decision. You may agonize over whether it is the right choice, and if you decide that it is, you may wring your hands over the right timing. You may tell yourself that there is still something else you can do to avoid bankruptcy, or you may take a “wait and see” approach. Meanwhile, your financial problems can continue to get worse.

In fact, bankruptcy should not be seen as a “last resort” or something that you have to do because you have no choice. Bankruptcy is actually a powerful legal resource – a secret weapon in your financial arsenal. A good Avondale bankruptcy attorney can help you learn more. But here are just some of the many great things that bankruptcy can do for you – and reasons you should see it as a judicious choice:

Man Holding a Pen Explaining to Other Person about Bankruptcy and The Benefits listed by My AZ Lawyers blog

Prompts an Automatic Stay

One of the biggest problems you face when you start accumulating debt you can’t pay is harassment from creditors. You may receive phone calls day in and day out – even multiple times a day. You may get called at home and at work. If your creditors break the rules, they may even talk to your neighbors, co-workers, family, or friends, or they might call you very early in the morning or very late at night. You may dread answering your phone or checking your email.

When you file for bankruptcy in Glendale, you trigger what is known as the “automatic stay.” The stay puts an immediate stop to any contact from any of your creditors. You may be contacted by a creditor or two who didn’t update their information quickly enough with their call centers. But after you let them know you have filed for bankruptcy  you shouldn’t hear from them again. If you do, you can take action against them. 

Saves Your House

If you let your credit problem go, you may have to start selling assets. You may not have any other recourse if you don’t take steps before then. If you own your home, that may mean eventually selling your house – either to downgrade to something cheaper or to move in with family or make some other arrangement.

If you file for bankruptcy, you can keep your house. Chapter 7 bankruptcy in Mesa allows for a homestead exemption. So, unless you own a very expensive house outright, your house will not be seized to pay creditors. If you have fallen behind on your mortgage, you can file for Mesa Chapter 13 bankruptcy to include the amount you owe in a debt repayment plan. You’ll save your house from foreclosure and deal with your debt problem at the same time. 

Saves Your Retirement Accounts

Instead of selling your assets to pay your debts, you may think to cash in your retirement accounts to pay off your debts. However, doing so would be a big mistake. You’ll only be pushing your problem down the road – you may pay off your debts, but you’ll find yourself without the resources you need when you retire, creating a financial crisis when you have fewer solutions. 

Fortunately, retirement accounts are among the assets that you can exempt from a bankruptcy filing. You don’t have to worry that creditors will take legal action against you and seize your account. You can file for bankruptcy and protect your retirement savings while eliminating your debt or making it more manageable. 

Bankruptcy can help you take control of your finances, rather than waiting until your creditors are taking action against you and you no longer have any choices. Talk with a bankruptcy attorney serving Gilbert to determine how bankruptcy can help you get maximum debt relief and allow you to reach your financial goals. 

My AZ lawyers are ready to help if you live in Mesa, Glendale, Tucson, Phoenix, or the surrounding area. An experienced and dedicated bankruptcy attorney from our team will help you understand your rights and responsibilities under bankruptcy law, as well as how bankruptcy can help you gain the freedom you seek from overwhelming debt. We represent individuals interested in Chapter 7 bankruptcy or Chapter 13 bankruptcy, as well as businesses. Call our bankruptcy law office to schedule a consultation today.

Arizona Offices:

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202

Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308

Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701

Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392

Office: (623) 469-6603

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