Phoenix Bankruptcy Law Firm Can Assist with Bankruptcy Filing and Debt Negotiation
Written By: marcdingman@gmail.com
We are living in tumultuous economic times, and more than ever people are finding themselves in situations where they have to file for Chapter 7 bankruptcy or engage in debt negotiation. These decisions are never easy to make. Filing for bankruptcy can impact your credit and ability to make future purchases, but when your expenses far exceed your earnings sometimes it is the only choice. Before you make big decisions like filing for bankruptcy, however, seek the advice of a competent bankruptcy lawyer. Our Phoenix bankruptcy law firm will help you end the harassment of debt collectors and make the right decisions when it comes to bankruptcy or debt negotiation. Below are some of the options you have when it comes to relieving your debt burden.
Chapter 7
Chapter 7 is the form of bankruptcy that is most commonly filed for in the United States. Individuals or businesses may file for Chapter 7 if the debts they owe to their creditors become unmanageable. Filing for Chapter 7 allows you to keep some property that is considered exempt to the liquidation of assets, such as a real estate mortgage. A Chapter 7 bankruptcy will remain on your credit report for 10 years after filing. The negative effect of this blemish on your credit report may be preferable, however, to the effect not paying your current bills is having, as filing for Chapter 7 will remove the unpaid debts from your credit report.
Chapter 13
While Chapter 7 involves liquidation of your assets, Chapter 13 allows you to retain your assets provided your debtors accept your plan to pay them within 3 to 5 years. This will allow you to stop foreclosures, eliminate your debts after a period of time, and end collection efforts by third party collection agencies. To file for Chapter 13, you do need to have the financial ability to follow the payment plan you have outlined. Chapter 13 filing does remain on your credit report for 10 years, but allows for the discharging of a wider array of debts than allowed under Chapter 7. Our firm employs some of the best bankruptcy attorneys in Phoenix, and can aid in any type of bankruptcy filing, including Chapter 13 and 7.
Debt Negotiation
An alternative to filing for bankruptcy is to engage in debt negotiation with your creditors. In this scenario, you and your creditors will agree on a reduced amount that can be paid to settle your debt. Debt negotiation can help you to avoid the credit stigma associated with filing for bankruptcy. While approaching your creditors to settle a debt can be daunting, a lawyer can act as your representative and do all the negotiating for you.
If you’ve gone through bankruptcy filing or debt negotiation, the next step is to make a plan for credit repair. By developing a 5-10 year financial plan, you can start on the path of repairing your credit. By the time the bankruptcy filing is erased from your credit record, you will be ready to start your financial life anew.
A high debt burden can be a stress on your mental health as well as your financial status. Consult our Phoenix bankruptcy law firm, and move toward financial freedom!
