Filing for bankruptcy in Arizona can be an extremely difficult decision. Some wait years, avoiding the option at all costs while their debts continue to grow. The Phoenix bankruptcy lawyers at Bankruptcy Law Network are here to help. As is the case with many government solutions to financial trouble, filing for bankruptcy comes with a large number of social and emotional issues. This, however, should not be the case. Bankruptcy is far from a financial death sentence; in truth, many benefits can be seen from filing for bankruptcy successfully.

Automatic Stays

Automatic stays are your first assets when filing for bankruptcy. When the initial petition is filed, these stays become active and prevent creditors from taking negative action against you. This covers a broad spectrum of creditor harassment including contact and intimidation. Collectors will be advised not to call you, pending financial litigation will cease, and any repossession or garnishment of assets will be stopped immediately. These things are instrumental first steps in getting you out of debt. Once you can focus your energy on rebuilding instead of maintaining, you can set yourself back on the path to financial stability.

Debts Could Be Settled Without Loss of Property

Often, major pieces of property are rendered at least partially exempt from liquidation or sale during bankruptcy proceedings. While this is not a guarantee, if you are working with a qualified professional like an experienced bankruptcy lawyer in Phoenix, AZ, it is highly possible to put your assets to use in a way that allows you to retain possession of them while still leveraging them to become debt free.

Credit Ratings Often Improve

While a bankruptcy in Arizona will stay on your credit score for anywhere from seven to ten years, many people report an increase in their overall credit due to the bankruptcy process. Not only does bankruptcy provide a head start on rebuilding your credit by eliminating previous debts; it corrects your debt-to-income ratio, which ultimately raises your score over time.

Certain Debts May Be Discharged

Discharging a debt means releasing an individual from responsibility for its payment. If a debt is discharged, the creditor to whom the debt is owed is prevented from ever taking further collective action against the debtor, and the debt, in essence, disappears. Some common examples of dischargeable debt are overdue credit card fees and charges, medical bills, vehicle accident claims, and old tax penalties. In regards to discharging taxes in Arizona, there are many factors that come into play and our Phoenix bankruptcy attorneys can help make sense of the entire process. Furthermore, being that credit card and medical debt are the leading sources of payment deficiency in the United States, the opportunity that bankruptcy provides cannot be overstated.

Your Image Will Be Kept Cleaner

Because collectors will be unable to take punitive action against you, there is no need to worry that your name may be associated with debt in the public sector. Filing for bankruptcy will shield you from court proceedings, which almost always end up in the public record and can sometimes be picked up by the news or local publications. If your professional or personal life is built on the foundation of a clean image, bankruptcy can be invaluable in ensuring your public persona is kept intact.

Filing for bankruptcy in Arizona is sometimes simply facing the reality that your current debt has gotten beyond your control, and that’s okay. The sooner you contact a Phoenix bankruptcy lawyer and take steps to correct your outstanding debts, the sooner you can rebuild your financial profile. Many people have filed for bankruptcy, and if it is done with the intent of getting your finances set on the right track in the long-term, there is reason to be proud of your decision. You are making the decision to take control of your finances, and going down a path that can leave you and your family more financially stable in the long run. Contact legal professionals who have been in your shoes.