Personal bankruptcy refers to the legal process a person takes when they are unable to meet their financial obligations. A person that chooses to file for bankruptcy does so to seek relief from parties they owe money to,when it is clear they are unable to pay their debts. By the time you start the process, it means that you are insolvent because you are unable to pay your debts.
Although filing for bankruptcy may offer you relief in case you are facing mounting debt, it is a good idea to look for personal bankruptcy help in Scottsdale because the process comes with certain financial restrictions. After you file for the process, your creditors are compelled to write off your unsecured debts and can no longer make claims against you.
What you need to know about bankruptcy
Depending on your circumstances, there are two main types of bankruptcies you can choose. If your debts are too many or too high, and you do not seem to have a realistic way of repaying them, you can file for Chapter 7 bankruptcy that allows you to walk away from your debts completely.
If you need some temporary relief but you hope to repay your debts at a later date, then you can file for Chapter 13 bankruptcy. This form of bankruptcy protects you for a certain period as you organize to repay your debts within three to five years. In case you have suffered a temporary setback such as loss of a job or a medical condition this is the best option.
One advantage of filing for bankruptcy is that you can keep some of your assets. Personal property such as household furnishings, clothes and electronics are some of the items that are exempt from the filing. In some cases, you can also retain some other bigger assets such as the family home and your car.
To get the best advice, it is important for you to make an appointment with a personal bankruptcy attorney in Scottsdale. A good attorney will be able to take you through the bankruptcy process and guide you on the best option for your circumstances. As a specialist in the bankruptcy process, the attorney will be in a position to inform you the likely outcome of your decision based on the experiences gained from dealing with various clients in the same position.
When choosing a bankruptcy attorney, you need to understand that their services and the entire process do not come cheap. Despite the fact that you are facing financial problems, you will still be expected to pay a substantial amount to get the legal protection you need. However, some legal firms offer discounted or low-cost services.
It is important for you to note that when you file for bankruptcy, the record will stay on your credit history for about 10 years even if you resolve it sooner. For this reason, you should only file for the process if you have no other option.
If you have considered all your options and resolved to go ahead with the process, it is a good idea to seek the services of a reputable and experienced attorney to take you through the bankruptcy process.