At the Gilbert, Arizona law office of Wilson-Goodman Law Group, PLLC, we understand that financial disasters happen to the best of us. Often conditions beyond our control make it impossible to catch up on debts, leading to sleepless nights and days filled with worry.
Our bankruptcy attorney can help you get a hand on your financial situation, putting an immediate end to creditor harassment and wage garnishment.
Bankruptcy could be the solution you need to get a fresh financial start. Contact us at Wilson-Goodman Law Group, PLLC, to learn if bankruptcy is an option for you.
Should You Consider Bankruptcy?
Debt can be overwhelming. The resulting stress can impact your health, your career and your family. If this is the case, learn more about whether bankruptcy might be the right option for you.
- Are you unable to make even the minimum credit card payment?
- Are you using one credit card to pay another credit card?
- Are you behind on your mortgage payments? Behind on car payments?
- Are you facing home foreclosure?
- Are they threatening to repossess your car?
- Are your wages being garnished?
- Have creditors seized your bank account? Your tax refunds?
See our Bankruptcy Debtor Checklist.
Chapter 13 Bankruptcy
If you have suffered a temporary loss of income or have gotten behind on your credit card debt because of a temporary increase in expenses, Chapter 13 bankruptcy can give you the breathing room you need to finally get caught up. Chapter 13 debt reorganization reduces your overall debt, lowers interest charges, removes fines, and allows you to pay off your credit cards over a longer period of time. Ask a Gilbert bankruptcy attorney if Chapter 13 is the best option for your situation.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called “fresh start” bankruptcy, is usually the best option for people who have suffered a permanent loss of income or those who cannot make even minimum payments. Chapter 7 bankruptcy can seem scary to many people, but it can also bring tremendous relief as you become free of crushing debt. Although the law has made it more difficult to qualify for Chapter 7 relief, a review of your financial situation by an experienced Gilbert bankruptcy attorney can help you determine your eligibility.
Are There Any Alternatives to Bankruptcy?
When facing bankruptcy, most people don’t know where to turn or what options they may have. It is always helpful to be aware of as many alternatives as possible, but there are always risks to any option where substantial debt is concerned. A good lawyer will always go over your options with you, including those that may avoid bankruptcy. For example, here are three alternatives to bankruptcy that you may want to consider, each with its own pros and cons.
- Consolidation of debt: Debt consolidation involves obtaining a loan in order to pay off your unsecured debt and consolidate all of your debt under one loan. The advantages are, of course, paying off your unsecured debt, and you may end up with a lower interest rate or longer-term for repayment.
- This solution is for: People who can just about pay their debts but who are still struggling a bit and need better terms for repayment.
- Cons: Potentially severe future consequences. If you transform your unsecured debt to secured debt, say using your home as collateral, you face losing the house if something goes wrong with repaying the new loan.
- Debt settlement: If your debt is significantly in default and has been purchased by a debt buyer or collection agency, it may be feasible to try to settle these types of debt for 40 or 50 cents on the dollar. By the time a debt like this becomes so far into default, companies will often settle in order to at least get something in return.
- This solution is for: People who have the ability to save enough money to make a realistic offer to the debt buyers (e.g. offering $10,000 on a $30,000 debt). Beware of companies that claim to specialize in debt settlement as many are scammers.
- Cons: By the time debt settlement becomes feasible, the original debt may have grown substantially due to years of fees and interest. For example, what used to be a $3,000 debt has grown to a $10,000 debt over the course of several years.
- Not paying debts at all: Some people just choose to ignore their debts. While generally not advisable, it can work in very rare circumstances.
- This solution is for: People who are not working, have no assets, and are living on exempt income. It is likely that state court lawsuits will happen, and you will have to appear in court. However, if your only income is exempt, the judge will likely not require any payment from you at all, at least immediately.
- Cons: If you do not meet the strict criteria above, this is generally a bad idea. For example, if you have a job you may be subject to wage garnishment.
Of course, bankruptcy has its own pros and cons too, which is further discussed in the bankruptcy section of this website. But no matter which option you choose, you owe it to yourself to find out if you qualify for bankruptcy debt relief. Contact us online or at (480) 503-9217 today.
Wilson-Goodman Law Group, PLLC is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.