Understanding Chapter 7 Bankruptcy
When you’re experiencing a bad financial stretch, you’ll need an experienced Phoenix Chapter 7 Bankruptcy Attorney to guide you through the process. Whether you’re dealing with creditor harassment, a foreclosure or repossession threat or simply feeling trapped by your debts, an experienced bankruptcy lawyer can help get you the relief you need and restore your credit rating.
The Best Chapter 7 Bankruptcy Attorney In Phoenix
If you’re struggling to pay your bills and are considering filing for bankruptcy, it’s important to seek the counsel of an experienced Phoenix Chapter 7 Bankruptcy Lawyer who will provide you with a thorough review of your situation. A good Phoenix bankruptcy lawyer will also explain your rights and options, help you understand what steps to take next, and fight for your freedom from your creditors.
Your Rights in a Bankruptcy Case
When filing for bankruptcy, you must provide the court with a comprehensive list of your property and debts. These documents should include detailed information about the items you own, including their value, and your income and expenses. In addition, you must provide recent tax returns and pay stubs, if you are employed.
Then, you must fill out a number of forms that will be reviewed by a judge and a trustee. The trustee will determine whether you have the legal right to file for bankruptcy and if your property is exempt, meaning you don’t have to turn it over to your creditors.
A Chapter 7 bankruptcy is a federal legal procedure that gives you the option of discharging many types of debts. These include personal loans, medical bills, credit cards, and utility bills. However, some debts won’t be discharged through bankruptcy, such as child support and alimony. Other types of debts may be dischargingable, but they require a creditor to file a motion in order for the court to accept them.
Your Credit Score Will Generally Go Down With Bankruptcy
When you file for bankruptcy, the court will place a temporary stay on creditors’ collection activities, such as garnishing your wages or trying to levy your bank accounts. The court appoints a bankruptcy trustee, who will oversee your case and collect money from any assets that your creditors are entitled to collect, such as vehicles or real estate.
Your Debts Will Be Discharged With Bankruptcy
After the bankruptcy process is complete, most debts will be discharged. The exceptions to this rule include some tax debts, student loans and a few other types of debts.
Some debts won’t be discharged, such as certain debts that were incurred through fraud or misconduct. In these situations, your creditors can still pursue you for payment on the original debts if they can prove that the bankruptcy was a mistake.
You can choose to file for bankruptcy on your own, or you can hire an attorney. Statistics show that hiring an attorney has a higher success rate than filing on your own.
A qualified Phoenix bankruptcy attorney can guide you through the process of filing for bankruptcy and help you determine which type of bankruptcy is appropriate for your situation. They can also help you develop a repayment plan for your debts so that you can avoid the worst consequences of bankruptcy, such as losing your home and having your car repossessed. The right lawyer can make the process go faster, easier and less stressful than if you filed on your own.