Benefits of Filing for Bankruptcy in AZ

Helping Phoenix Clients Find Debt Relief Since 2000

Bankruptcy is often misunderstood and comes with a negative stigma. The reality is that debt is all too common a source of stress and anxiety among households across the nation, and bankruptcy is a means the government offers to relieve it. Filing for bankruptcy is one of the best options for people who have fallen into substantial debt, as it allows them to begin rebuilding their lives and helps them to get back on their feet.

At Leonard V. Sominsky, ESQ., PC, our Phoenix bankruptcy lawyer has been handling bankruptcy cases since 2000. In that time, he has gained a comprehensive knowledge of the legal processes and benefits associated with such cases. Our firm is dedicated to helping individuals who are struggling with debt understand their options for relief.

Contact us today at (602) 635-9102 learn how we can help you!

What Can Bankruptcy Do for You?

Filing for bankruptcy is one of the most effective means of absolving debts. Through this government-mandated program, you may be able to find relief from a number of stresses caused by seemingly unsurmountable debts. Bankruptcy may be the means of relief you need in a time of financial crisis.

By filing for bankruptcy, you can:

  • Wipe out credit card debtCredit card debt is unsecured, meaning that no specific property can be secured to the debt and repossessed as collateral.

  • Eliminate other unsecured debts – Similarly, other debts that are not secured to collateral property can be wiped out. These can be discharged in bankruptcy.

  • Halt creditor harassment and collections – As soon as you file, an automatic stay goes into effect and prevents creditors from taking further action.

  • Eliminate liens on property – Bankruptcy can revoke a creditor's right to take certain assets, meaning you get to keep them without additional costs.

  • Improve your credit – While a bankruptcy can remain on your credit for 7-10 years, you can still begin improving your credit almost immediately.

The type of bankruptcy you choose to file for will determine which benefits you will receive. Whether you opt for Chapter 7 or Chapter 13, it is important that you pick a type of bankruptcy that matches your financial needs. This will allow you to take full advantage of the opportunities available to you in the years that follow.

Benefits of Chapter 7

Chapter 7 bankruptcy is the best option for someone who is overwhelmed by debt and needs a new start to get a hold of their debt. In this process, most of a creditor's debts will be cancelled. While the majority of the properties held under secured debts, including your house and/or vehicles, will be reclaimed, you may be able to keep some assets in a reaffirmation agreement or through property exemptions.

Chapter 7 generally leaves people in a far better situation than when they started the process. With this fresh start, you can begin to work on rebuilding your credit and financial future right away. We can help you determine if Chapter 7 is your best option.

Advantages of Chapter 13

If you would prefer to pay off as much of your debt as possible and retain any secured properties, Chapter 13 bankruptcy provides benefits that you are likely to find more agreeable. Unlike Chapter 7, this form of bankruptcy does not eliminate your debt; however, it leaves various options that can be more beneficial once you have completed the three to five year repayment plan.

Chapter 13 bankruptcy offers the following opportunities:

  • Reduction of various debts
  • Repayment of debt over a period of several years
  • The debtor can keep their secured assets
  • Allows a homeowner to avoid foreclosure

Let Us Help You Find Relief—Call (602) 635-9102

At Leonard V. Sominsky, ESQ., PC, we are dedicated to your success and will treat you with the compassion and respect you deserve. Our bankruptcy attorney in Phoenix understands the stress of debt and wants to provide you with the resources you need to understand your opportunities in the bankruptcy process. Let us help you discharge your debts and put an end to creditor harassment.

Take the first step. Fill out a free case evaluation today.

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