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Posted by: Maricopa Lawyers on Sep 22, 2015

In the old days, filing for bankruptcy was a social stigma and actually a crime punishable by time in jail. In modern times, bankruptcy has become a common and in some cases, a viable option for repairing a distressing financial condition. Federal and Arizona bankruptcy laws are in place to give you a chance for a clean break from tough financial circumstances. If you’re wondering if filing for bankruptcy will help you improve your situation, here are some signs that it may be a good option:

  • Repaying your debts outside of bankruptcy would take you more than five years.
  • Your income is not enough to cover everyday expenses and debts, meaning the debts could potentially never be paid off.
  • Your creditors are threatening to take legal action.
  • You’re facing lawsuits, wage garnishments and bank levies.

While it is true that bankruptcy can help you eliminate most unsecured debts , such as credit cards and medical bills, and immediately stops any legal action from being taken against you, there is always going to be some fallout. Bankruptcy will stay on your credit report for some time, and it could have an effect on new job applications, renting a new residence, insurance and any case where you’re looking to finance something in the future.

Credit Counseling is a good idea (and required if you follow through with the process).

Completing a certified credit counseling program is required by the state of Arizona for all persons filing for bankruptcy. There are several certified programs in and around the greater Phoenix area. If you’re considering bankruptcy, a credit counselor may be able to show you alternatives. It’s also very important to get an attorney who can help you file correctly and make sure that your assets are protected throughout the process. Talk to a Maricopa Lawyer today about your options.