If you are having problems paying your debts, or are threatened with foreclosure or repossession, there are ways to deal with these problems. When faced with financial challenges, considering the decision to file for bankruptcy can be difficult. Before you make the final decision to file, it is essential to know the facts about bankruptcy and the complex process that it entails. Filing may not be the answer for everyone and is certainly in no way a “quick fix” to money problems. Here are some things to consider before making the final decisions to declare bankruptcy:
1. Wait as long as you can before filing. In Arizona, you can only file for bankruptcy once every six years, so you will want to make sure you wait to make the decision until you absolutely need it. Take time to research and consider the specifics of your financial situation. Just because creditors are threatening you for not paying your immediate civil debts (aside from fines or court ordered amounts) does not mean you should immediately file. There are other options to taking care of debt, and the best step to take first is to speak to an experienced Bankruptcy Law Attorney at The Sampair Group to discuss your options.
2. If you are worried about how your credit report will be affected, be aware that your choice to file for bankruptcy will remain on your credit report for 10 years, and your credit score will increase within one year. This won’t necessarily eliminate you from qualifying for loans, but you may be charged a higher interest rate from the lenders than if you had not filed.
3. When making the decision to file for bankruptcy, be sure that beforehand, you do not incur any more credit card debt or debt from borrowed money. This also includes loaning money to friends or family members or giving or selling property without consulting with a lawyer first. Opening a joint bank account with someone that is not your spouse can severely impact you as well before filing for bankruptcy. Lawyers at The Sampair Group also advice that you do not transfer any money between bank accounts or transfer a title on any automobiles in your name.
4. After filing, you are permitted to keep a certain amount of property including your home (with an equity under $150,000), you car (with an equity under $5,000) and personal items such as household furnishings. Investment accounts and boats or RV’s are not exempt from seizure during the bankruptcy and these assets are distributed to the creditors.
Before making the decision to file for bankruptcy, meet with an experienced, qualified bankruptcy attorney at The Sampair Group to discuss your options. Do not delay or ignore financial distress as it could result in further financial expenses that can be avoided.