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Bankruptcy: Do I qualify?

8.03.20 Posted By Alison Anders Bankruptcy

With businesses falling financial victim to COVID-19, so too are many hard-working Arizonans who rely on these businesses for a steady stream of income. If your employment has been impacted, you may be facing insurmountable financial pressures due to no fault of your own. If that is the case, you may be questioning whether you should file for bankruptcy. A free consultation with a Chandler family law attorney to discuss your options is the best way to answer this question and equip yourself with the knowledge necessary to make a sound decision. If you contact our office, we will first identify whether it is in your best interest to file bankruptcy or to consider other avenues (e.g. negotiation of outstanding balances or debt consolidation).

If bankruptcy is your best or only option, we will guide you through filing under the appropriate chapter (7 or 13). Your household size, income, expenses, assets and debts will be taken into consideration as part of this analysis. Exemptions are applied in Arizona for certain assets such as qualified retirement accounts, homestead equity (150k), and some or all of the equity in your vehicles. Though each case is different, this generally means that you do not have to give up all your property to free yourself of debt. If any of the below circumstances apply to you, you should consult with our office regarding your options and how to best preserve your assets: 1) Your monthly debts are, or will soon become unmanageable, or you are leveraging new credit to pay down old debts; 2) One or more civil suits have been filed against you by creditors; 3) Your wages or your spouse’s wages are being garnished; 4) You owe substantial tax debts; 5) You are considering withdrawing retirement funds to pay off debt; or 6) You are concerned about repossession of your vehicle. Bankruptcy relief, though a last resort, is designed to address times of financial distress. Let us help you make the best possible financial decisions and free yourself of debt.