Bankruptcy is a court process designed to give a fresh start to individuals and businesses overcome by debt. A bankruptcy does not necessarily mean that you have been living beyond your means and your spending is out of control. In fact, the most common reasons for a bankruptcy filing are divorce, unemployment, or medical bills.
There are several different kinds of bankruptcy to choose from, and it is important to discuss your situation with an experienced Phoenix bankruptcy lawyer to determine your eligibility and which form of bankruptcy is appropriate for you. While bankruptcy is certainly a big step, many clients do not realize how quickly their credit can recover. Indeed, as your Phoenix bankruptcy attorney can discuss with you, often your credit score will actually increase shortly after the bankruptcy is finalized. This can be as soon as six months from your bankruptcy filing.
Phoenix bankruptcy lawyer Ronald V. Thomas has nearly two decades of experience handling Arizona bankruptcy cases, whether they are chapter 13 cases, chapter 7 cases, or chapter 11 cases. Often, your initial consultation with Mr. Thomas is free, but in all cases, Mr. Thomas will be able to provide you with information regarding bankruptcy eligibility and the different kinds of bankruptcy filings available. It is important to understand these different kinds of bankruptcies to choose the one for which you are eligible and which most greatly meets your needs.
While a bankruptcy will appear on your credit report, the advantages of filing may be substantial. Not only might you see an improvement in your credit score soon after your filing, you will also be granted relief (either temporary or permanent) from bill collectors calling you, garnishing your wages, foreclosing on your home, or prosecuting any action against you to recover debt. In addition, depending upon the type of bankruptcy you file, you may be able to walk away entirely from many debts. Since bankruptcy rules vary widely by state, it is important that you get information relevant to your situation from a qualified Phoenix bankruptcy lawyer.