Bankruptcy Overview

Phoenix Bankruptcy Lawyers

Bankruptcy is a legal process that allows individual consumers and business to discharge their debts when they are not able to make payments.  People may be chronically late with their payments to creditors or may not have the financial means to repay debts before they start to consider bankruptcy.  When people choose to file for bankruptcy, especially consumers, they want to have a fresh start and do not want to be plagued by their debt.  They also want to settle their debt with their creditors to avoid incurring further burdens, like creditor harassment. 

In the United States, individual consumers may file for one of two types of bankruptcy:  Chapter 7 or Chapter 13.  People who file for Chapter 7 Bankruptcy are usually looking to have their debts discharged and may lose their homes and cars through liquidation.  When people file for Chapter 13 Bankruptcy, they do not want to have their assets liquidated, so they try to reach an agreement with their creditors to repay their debt over the course of 3 to 5 years.

Before any person can file for bankruptcy, he/she must complete credit counseling with an agency that is approved of by the U.S. Trustee.  During credit counseling, peoples’ debts and income will be reviewed by a specialist in the field.  People will then be provided with advice on budgeting, repaying debts and maintaining financial freedom.

Once a person has filed his/her petition, the timeframe for his/her bankruptcy will vary.  For example, if a person files for Chapter 7, it will usually take between 4 and 6 months.  However, if a person files for Chapter 13, the process will take 3 to 5 years as the person will have to repay his/her debt in order for the process to end.  After a person successfully files for bankruptcy, his/her bankruptcy will appear on his/her credit report for 7 to 10 years. 

Phoenix Bankruptcy Law Firm

If you are considering bankruptcy, contact our independent Phoenix bankruptcy lawyers today!

The Phoenix Banckruptcy Law Firm assists individuals who are looking to file for bankruptcy in Phoenix and surrounding areas in Arizona such as Tuscon, Mesa, Glendale, Tempe and Prescott.