There are many reasons people fall into financial trouble. There are three big events that often lead to financial problems.
- Medical bills and health problems
- Underemployment or loss of a job
If you experience one of these events in your life, you’re not alone. There are many life events that can lead to financial trouble. No matter the cause of your financial difficulties there is always a way out.
How Attorneys Help With Phoenix Bankruptcy Filings
With so much at stake, your business, your property, your future, you need an experienced and qualified attorney to match your unique situation.
We can help you resolve your debt issues or give you a new financial start. The Pew Law Center provides debt elimination and bankruptcy services under Chapter 7, Chapter, 11, and Chapter 13 of the U.S. Bankruptcy Code. Each chapter represents a specific type of case. Each case has certain procedures and rules.
When people suffer through a financial hardship, they often ask if their situation is so dire that they require a Phoenix bankruptcy attorney. If you’re not sure if you should file for bankruptcy, consult with an experienced attorney to get information specific to your situation.
An experienced lawyer can provide you with information about debt relief solutions you need to make informed decisions. Here are some signs that can serve as an indication of your present financial situation and point to the need for a bankruptcy attorney.
Credit Card Debt
If you carry a high credit card balance and are not in the position to pay the balance or the amount you’d need to pay seems unrealistic, that’s a sign of financial trouble. Credit card debt is often considered “unsecured debt.” This type of debt could be discharged if you file Chapter 7 bankruptcy.
According to statistics, medical bills have overtaken credit card bills as the leading cause of bankruptcy. If you have a large amount of unsecured debt, which can include medical bills, you may consider Chapter 7 bankruptcy. This may be what you need to get a fresh financial start. If you have a large amount of medical debt, bankruptcy might offer you some peace of mind.
Borrowing From Your Retirement Account
If you’re borrowed funds from your retirement account to pay debts or are considering it, that’s a red flag that shows you’re financially overwhelmed. It’s a bad idea to pay off your dischargeable debt using your retirement money. Once you use this money it’s unlikely you’ll be able to replace it. That means you may be in deeper financial trouble when it comes time for you to retire.
Repossession and Foreclosure
If you’re about to lose your car to repossession or your home to foreclosure, you should contact your bankruptcy lawyer to discuss the available options. Filing bankruptcy might stop a vehicle repossession or home foreclosure in its tracks. Bankruptcy may offer you the opportunity to save the valuable assets you worked hard to acquire.
If you’re getting harassing or threatening messages and calls from creditors about your debts, you should understand that filing for bankruptcy can stop this harassment. Filing for bankruptcy can prevent creditors from communicating with you in any form, including demand letters and calls. This can help give you some peace.
If part of your paycheck is being taken through garnishment because you owe money, it’s a sign of trouble. A garnishment can take a significant amount of money from your paycheck. This could put you deeper in the hole because you won’t have money to invest or save. You’ll end up trying to make ends meet while living paycheck to paycheck. When an emergency arises you won’t have the funds to handle it.
Many people believe bankruptcy will permanently ruin their credit. However, this is not true. Your credit rating will initially take a hard hit, however, you can immediately begin to rebuild your credit after the bankruptcy is discharged. After you’re relieved of your current debt and have a chance to reorganize your finances, your credit score will increase. When you begin to make better financial decisions, a bankruptcy filing can help improve your credit over time.
Free Phoenix Bankruptcy Filing Consultation From Professionals
If you’re not sure whether or not filing for bankruptcy is right for you, contact our office today. We’ve helped thousands of Arizona citizens get their lives back on track with compassionate assistance from our experienced professionals. Call or fill out our form to get help today.