Filing for bankruptcy can be tricky, and even worse can be the consequences that come with it. If you are looking to file for bankruptcy with help from a Mesa bankruptcy attorney, you probably, no doubt, have a lot of questions that can’t rightfully be answered as sensitively as they should be. Before you take this step in trying to reclaim your financial security, you should make sure you have all of the facts first. Talk to your Mesa bankruptcy lawyer and get every detail you can before they help you sort out your financial troubles. Here are a few basic things you need to know before you do this.

The benefit to filing for bankruptcy is that once you do it, you will have no more debt. Unfortunately, this does not mean that you can spend exorbitant amounts of money. A lot of the times, the first thing that new bankruptcy victims want to do is to make a huge purchase like a house or a car. If you want to buy a house, a lot of lenders will want you to put down at least a 20% down payment. This may seem like a lot of money, but it is more secure for them to ask for this, especially when lending to someone who has just filed for bankruptcy. A good way to save up for this is to make sure that you cut your unnecessary expenses. Dining out, cell phones, cable charges, and excess spending. The larger the down payment, the more likely it is that you will get a better financing deal with a lender.

Another negative side effect of filing for bankruptcy in Mesa is that it leaves your credit in ruins. This is no secret. Having bad credit can bar you from making larger purchases that you might need to make in the future. Once you file for bankruptcy, you should automatically start rebuilding your credit so that you can eventually make those big purchases again. Your first step in doing this is to make sure you pay your debts as soon as possible. If you do this, your creditors will report to the credit bureaus that you have made your payments in a timely manner. If you owe money on your student loans, pay those in a timely manner. If you’ve purchased a car, make sure those are on time. Reaffirming your car loan if you are bankrupt will help restore your credit, and this will also be reported to the credit bureaus. But you should always make sure that it will be beneficial to you, because sometimes reaffirming your car loan can also be detrimental.

Sometimes credit lenders can be dishonest, so make sure to check your credit reports as frequently as possible to be absolutely positive that they are reporting your payments. If they aren’t, contact an Arizona bankruptcy lawyer to file a dispute and show proof of your payments. If you have reaffirmed your car after the bankruptcy instead of during the bankruptcy, this could be the result. In addition, if you get a credit card after you have filed for bankruptcy, make sure that you pay it off entirely within a two or three month period. This will get you much further in the endeavor of trying to reestablish your credit and make sure your credit score is increasing periodically.

Although it may not be easy, and you must be careful at all times, buying a home after filing for an Arizona bankruptcy is entirely possible. You have to be vigilant and make sure that all of your finances are in order. You should always keep in mind the troubles you went through before and during the bankruptcy. This is the only way that you can really avoid doing it again. You also need to be patient. You may think that once you file for bankruptcy, your troubles are over, but in order to prevent it from happening again, you can’t go back to your frivolous ways. Save your money, take time to gather yourself and your funds, and soon you will be perfectly capable of buying a home once again.

Filing for an Arizona bankruptcy with a professional bankruptcy lawyer is as easy as calling My AZ Lawyers. With our friendly experts and our caring touch, you can have your bankruptcy filed and taken care of in a timely manner. Get your life back on track as well as your finances and make sure to schedule a free consultation with Mesa Bankruptcy Lawyers.

(480)833-8000

Mesa

Gilbert

Phoenix

Tempe

Mesa Bankruptcy Lawyers
4065 E University Dr #500
Mesa, AZ 85205
(480) 470-0005

Most people see bankruptcy as a last resort. They have tried to make good on their debts, but they have fallen in over their heads, and they just can’t make it work. So they take advantage of this debt relief option to get a fresh start.

No one sets out to get into financial trouble, but bad things happen to even the best of us. All the financial planning and wise spending in the world can’t dig you out of some holes. So unfortunately, you may find yourself in the position of needing to file for bankruptcy a second time — or if you’re Donald Trump, multiple times.

Arizona law puts a limit on when you can file for bankruptcy after you have filed in the past. It is always best that you consult with an experienced Mesa bankruptcy lawyer to determine how the laws apply to your circumstances if you are ready to file for bankruptcy. However, here are some basic guidelines to let you know what you might be up against:

Chapter 7 after a Chapter 7

Chapter 7 bankruptcy is the type of bankruptcy that most people think of because it gives you the “clean slate” from credit cards and other unsecured debt. But you have to meet strict requirements to qualify for this chapter of bankruptcy. You will always have to wait the longest amount of time between filings if you want to file for Chapter 7 again.

You must wait eight years from the date you first filed for Chapter 7 bankruptcy in order to file again for the same kind of bankruptcy. That cuts down on the time a tad since you don’t have to wait eight years from when the first bankruptcy was finalized — and these matters can take several months.

Chapter 13 after a Chapter 7

If you need debt relief much faster after filing for Chapter 7 bankruptcy, you might consider looking at Chapter 13. The time to file is cut in half — just four years after the date you file for Chapter 7.

You won’t be able to discharge your unsecured debts, but you will be able to get your debts under control by entering into a negotiated repayment plan. Your bankruptcy attorney in Mesa will help you get a repayment plan that better reflects your current financial situation, which may include lower interest rates, lower monthly payments or lower overall repayment amount. After just three to five years, you will be free of your current debt.

Chapter 7 after a Chapter 13

In most cases, you will have six years from the date you filed for Chapter 13 bankruptcy in which to file Chapter 7. There are some exceptions.

You may be able to file for Chapter 7 bankruptcy sooner if you have already paid 100 percent of the unsecured debt or you have paid 70 percent of unsecured debts and you made your best efforts to do so. In other words, you may have been working diligently to pay off your debts under the proposed repayment plan, but you may have faced further hardship, such as losing your job or becoming ill. You may then be able to file for Chapter 7 to have your remaining unsecured debts discharged, plus any new unsecured debt you acquired in that time period.

Chapter 13 after a Chapter 13

The shortest waiting time to file for bankruptcy will be if you are looking at a Chapter 13 after you have already filed for Chapter 13. You will be able to re-file after only two years from the date of your initial filing. Since most repayment plans are for three to five years, chances are good that you will still be under a Chapter 13 restructuring when you are permitted to file again.

This is good news since it allows you to reevaluate your debt situation if your repayment plan is not providing the financial relief you need. Your Mesa bankruptcy lawyer may be able to incorporate the debts from the previous plan into a new plan with new debts that helps to lower your interest rates and overall costs.

As always, you will need to work with an experienced attorney who can help you understand your options before you make a decision. Mesa Bankruptcy Lawyers is ready to analyze your financial information and give you tailored advice about the best bankruptcy or debt relief option for you. Call us today if you are considering filing for bankruptcy, even if you have filed in the past.

(480)833-8000

Mesa

Gilbert

Phoenix

Tempe

Mesa has seen a better economy in recent years, and it looks like the need to hire a debt relief lawyer in Mesa is changing. A better economy leads to more successful businesses and less debt-ridden people. The need to file for bankruptcy in Mesa due to excessive debt is really lowering. But what exactly is bankruptcy, and how does the local economy affect how we accumulate debt? Let’s look at some definitions to understand the process better.

Understanding what bankruptcy is

Bankruptcy is a legal process in which a business or person can wipe clean their debts. This is possible by proving that the entity does not have the assets or consistent income to pay off a looming debt or debts. In order to file for bankruptcy successfully, the person or business must prove the amount of assets and money they have and show that the debts that they have greatly outweigh those assets. Should they be successful, the court will absolve the entity of all or part of their debts. This comes at a price, though. Bankruptcy stays on your credit score for up to ten years and greatly affects your ability to get a credit score based loan. This can be detrimental for businesses that successfully file for bankruptcy. On one hand, their serious debts are absolved and they do not need to pay them back. On the other hand, loans and investments often keep a business going. If a business is already in debt, it is likely because their business has been unsuccessful in making much money. When that business files for bankruptcy, they will probably not be able to get additional loans to keep the business going. And so, the business will often have to be sold to someone else or completely close down permanently.

Mesa, Arizona is changing for the better economically

Low interest rates and better jobs are helping Mesa consumers and businesses stay debt free, or at the very least able to manage their debt without the need for a bankruptcy lawyer in Mesa. However, Mesa is far from perfect. There are some weak points in Mesa’s economy that have not been fixed.

Over the past five years, people have been filing for bankruptcy less and less. However, while middle class citizens are getting a brunt of this benefit, lower class families are struggling consistently.

The country is experiencing a dip in bankruptcy filings

Nationally, consumers are managing their debt better. Less than three percent of credit card accounts in early 2016 were a month or more overdue. This debt statistic was down over two and a half percent from late last year’s statistic of credit card debt. Some bankers are claiming that because more people have found employment, wages are seeing an increased, and home values have also been increased, people are turning to accumulating debt less and less than before.

The low interest rates are really helping too. Household monthly debt payments have dropped to ten percent this year. This is a welcomed dip from 2007, when household monthly debt payments were at nearly thirteen and a half percent. The debt burden has been at or under ten percent very rarely since the eighties, making this a great economical time. Households also hold approximately seven dollars in assets for every dollar they have in debt.

A United States recession will not be happening anytime soon

Global strategists are happy to report that there are no signs of a recession happening soon. The economy is growing, although at a slow pace. However, borrowing trends are appearing to rise at a rate higher than household incomes can handle. Most of this ties into the student loan crisis as well as increased auto loan debts this year. This trend may be something to be concerned about in the future, although these loan categories are modest. Sixty seven percent of all household debt in the United States is from mortgages, while nine percent accounts for student loans and less than seven percent account for auto loan debt. Hopefully, we can maintain our country’s current pleasant economic state and continue growing.

I need to file for bankruptcy and need a good Mesa, Arizona bankruptcy lawyer.

Luckily, My AZ Lawyers is here to help. We are an Arizona-based law firm that boasts a talented team of experienced, trained, and niche bankruptcy lawyers that will help you file for bankruptcy with detail and accuracy to avoid future hiccups and possible fraud chargers. Give us a call today to learn more about how we can help you file for bankruptcy with accuracy.

(480)833-8000

Mesa

Gilbert

Phoenix

Tempe