Bankruptcy Relief for Individuals & Businesses In Arizona

Many people considering bankruptcy want to know if they can keep some of their credit cards after bankruptcy. The reasons vary. Some want to pay off a particular debt, some want to keep a specific card because it offers a particularly low-interest rate, but most often the reason is that they simply want to have access to a credit card after bankruptcy. Whether you can keep a credit card after bankruptcy often depends on whether there is a balance on the card when the bankruptcy is filed.

Most unsecured debts can be discharged in bankruptcy. This includes credit card balances, medical bills, and personal loans. In addition, some secured debts, like judicial liens, can be discharged if they impair an exemption in a debtor’s property.
It shoud be noted, however, that certain debts, even though unsecured, are not discharged in bankruptcy. For example, bankruptcy will not discharge domestic support obligations and certain taxes. In addition, whether some unsecured debts are dischargeable may depend on the type of bankruptcy filed (i.e. Chapter 7 or Chapter 13). If you have questions about the dischargeability of a particular debt, you will need to speak to a bankruptcy attorney. If you reside in Mesa, greater Phoenix area, Tucson or Southern Arizona, please contact Yusufov Law Firm for a free consultation.

The answer is generally yes, if you continue making the mortgage payments. If you fell behind on your mortgage payments due to temporary financial difficulties, filing a Chapter 13 bankruptcy can allow you to catch up on the missed payments over a period of several months to several years. This is true even if a foreclosure date has already been set–filing bankruptcy will stop the foreclosure process. If your income is not sufficient to continue making your monthly mortgage payment, you may be able to modify your mortgage through the Mortgage Modification Mediation Program.  In some situations, especially where the debt on the house far exceeds its value, surrendering the house to the lender may be the best option, and may in fact resolve most, if not all, of your financial difficulties. However, for individuals who want to keep their house, their other debts can often be restructured, reduced, or eliminated in order to free up enough income to make the mortgage payment. To learn about your options, please contact a Mesa and Tucson bankruptcy attorney at Yusufov Law Firm for a free consultation.

Yes, filing for bankruptcy will stop most wage garnishments. However, bankruptcy will not stop wage garnishments based on a domestic support obligation, like child support.  For more, read our Ultimate Guide to Stopping Garnishment in Arizona.

No, you do not have to give up all your assets. In fact, the purpose of the bankruptcy laws is to allow individuals to obtain a fresh financial start. This purpose would be completely defeated if debtors were required to give up all their assets. The bankruptcy code and state law specifically allow an individual to keep (exempt) various types of personal and household property, as well as a car and a house, each up to a certain value. In most situations, individuals can keep all their personal and household belongings after filing for bankruptcy. An experienced bankruptcy attorney can advise you how filing for bankruptcy will affect your assets, and can help you plan prior to filing bankruptcy to maximize the assets you are able to keep.