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Dealing with your Debt Troubles with assistance from a Chapter 7 Bankruptcy Attorney in Phoenix
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Posted On :
Dec-23-2011
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Article Word Count :
525
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Life is unpredictable. One day we're in great financial standing and the next, we aren't. This is made truer by the ongoing economic situation. In some instances, individuals resort to filing Chapter 7 bankruptcy to get away from a financial mess.
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To say that this world economy is having difficulties is an understatement. Nobody is able to escape from the effects of a vulnerable economy, Arizona included. The state ranked thirteenth in the nation for personal bankruptcy filings in 2010. Almost ten thousand cases were filed and of that number, eighty-two percent were cited as Chapter 7. These statistics are alarming, and are exactly why Chapter 7 bankruptcy attorneys in Phoenix are growing in number. If you are filing, it's essential to learn as much as you possibly can about the topic.
What is Chapter 7 bankruptcy? Are there other kinds?
The Bankruptcy Code of the United States lists down three provisions that people can file: Chapter 7, Chapter 11, and Chapter 13. Chapter 13 requires payment of some or all the debt over a duration of several years. Chapter 11 is used primarily by companies that need reorganization to get out of their financial troubles.
Chapter 7 is the most common provision filed in the usa. This provision permits debtors to liquidate their assets to pay creditors. It is also used to prove that the debtor doesn't have any assets to pay for his debts.
What is the process that goes into filing for bankruptcy?
The first thing is to get hold of a Chapter 7 bankruptcy attorney in Phoenix or your city/town in Arizona. She or he will guide you with the papers that have to be filed in court. In these documents, you must be able to prove you don't have the capacity to handle a repayment plan. Besides this, you must provide a list of all your assets to determine if there are any items or properties you could be liquidating. These documents will be reviewed by the court and will see whether you qualify for liquidation. Qualifying for this provision generally is a tricky process. Contact your Chapter 7 bankruptcy attorney in Phoenix to get more in-depth information.
The proceedings can take nearly half a year to get resolved. Be ready to commit to the different processes and inquiries that will take place during this time. If the case is successfully discharged, you'll be obliged to attend credit counseling.
What are the consequences of filing for bankruptcy?
Those who look at this concept as an easy way out of their financial obligations are wrong. It will have numerous negative effects, starting with your credit rating. Remember that it will reflect on your credit history for a minimum of six to ten years. A poor credit score can prevent you from obtaining home or car loans in the future. Your career could also be affected by the filing of this process.
Furthermore, some people believe it may help stop foreclosure. Attorneys in Phoenix will indicate otherwise. The process may well buy you some time; but in the end, the prevention of foreclosure depends ultimately on your mortgage company. If there are additional legal ways for you to pay off the debt or prevent foreclosure, get it done. Filing for bankruptcy ought to always be your final option.
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Article Source :
http://www.articleseen.com/Article_Dealing with your Debt Troubles with assistance from a Chapter 7 Bankruptcy Attorney in Phoenix_123525.aspx
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Author Resource :
Libera Ferrari has consulted with a chapter 7 bankruptcy attorney phoenix. You should read up about stop foreclosure attorney phoenix to prevent being forced to file for bankruptcy.
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Keywords :
Chapter 7 bankruptcy attorney Phoenix, stop foreclosure attorney Phoenix,
Category :
Finance
:
Finance
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