Insolvency Lawyers in the USA

The recent economic downturn put many in a difficult financial position, unable to repay all of their obligations. This has been true for not just individuals, but businesses and cities, as well. When this occurs, the law provides a mechanism for getting out of control debts back under control, either by restructuring debt or wiping out certain types of obligations. This is bankruptcy.

Bankruptcy is a legal proceeding that helps some people who cannot pay their bills get a fresh financial start by temporarily, or permanently, preventing creditors from collecting debts from you. Bankruptcy is generally considered the debt management tool of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance, or sometimes get a job.

When we talk about discharging debts in bankruptcy, we are usually referring to a Chapter 7 bankruptcy. Typically, a Chapter 13 bankruptcy involves a restructuring of debt rather than a discharge, or forgiveness of debt. For that reason, for most people the main goal of filing for Chapter 7 bankruptcy is to discharge / wipe out their debts. For example, while there are many other types of debt that Chapter 7 will discharge, credit card debt is one of the most commonly discharged debts.

Bankruptcy can be a complicated process with many technical requirements and provisions. Understanding the basic steps for a bankruptcy in Arizona will help you know how to prepare and what to look out for as you move forward.

When preparing to file for bankruptcy, there are often many things on your mind. How will this affect my credit? Will I be able to pay for this? What will I lose? What will I gain? But one question that many people do not even know to ask is “what is the difference between a Chapter 7 and a Chapter 13 bankruptcy?” The answer can have profound repercussions on your case.

If you have a good or even a great credit score, many other people will be trying to steal your information and ruin your credit score. Identity theft is on the rise throughout America. In a way it is a silent crime that can do severe damage to a person's credit score and financial situation. Chances are, either you, some family member, or someone you know has been negatively affected by theft of their identity.

When you are unable to pay your bills, creditors have no choice but to try various means to collect from you for monies that are owed to them. One of the options available to bill collectors is to get a writ of garnishment against you and proceed to garnish your wages. If you are having trouble making ends meet the way it is, how are you ever going to be able to get by with up to 25% of your wages being taken from you via a garnishment from one of your creditors?

During the bankruptcy process a debtor has to list all of his creditors on his bankruptcy petition. Sometime during this process the debtor forgets a creditor or two. It is completely normal to forget to list a creditor. Debtors are under extreme stress and sometime have to keep track of many creditors. If this occurs it is best to seek the advice of a bankruptcy attorney.

Bankruptcy is a viable option if you cannot pay your debts and support your family. If creditors are calling you at home and at work, writing you threatening letters or even filing suit against you, a bankruptcy filing can stop these things and give you breathing room to begin a fresh start.

To draw an analogy, think of a burst pipe in your kitchen — water gushing everywhere, running into the next room and ruining your rugs and furniture, and creating a large mess. You want to bring in a plumber who can fix the problem at the source, not merely put a Band-Aid on it. We all know this is the right way to go about it because we know how it plays out if we do not — the numerous plumber visits, the time taken off from work to meet the plumber, the mess you’re left to clean up.