Below is the third installment of questions commonly raised by Arizonans about Chapter 7 Bankruptcy. Because each situation is different, the best thing you can do if you have questions is meet with an attorney at Phoenix Fresh Start Bankruptcy Attorneys to discuss all of your options and alternatives.
Will Chapter 7 Bankruptcy Stop the Lawsuit That Was Filed Against me?
Chapter 7 will stop a lawsuit in its tracks. If you are being sued, bankruptcy may be a better and cheaper way to deal with the lawsuit. In Arizona, a Chapter 7 bankruptcy will generally be much more affordable than fighting a collections action. Moreover, chapter avoids the entry of judgment.
The last things you need are a judgment lien recorded on your home, your bank account emptied or your wages garnished. Chapter 7 bankruptcy stops all of these things from happening. If you have a lawsuit pending in Maricopa County, speak to an attorney at Phoenix Fresh Start Bankruptcy Attorneys about filing a Chapter 7 bankruptcy before judgment is entered.
Will Chapter 7 Bankruptcy Stop Foreclosure or Repossession?
Chapter 7 Bankruptcy can stop foreclosure on your house or a repossession of your car. In most cases, an “automatic stay” arises by law when the instant a bankruptcy is filed. The “automatic stay” stops the foreclosure and garnishment processes.
Generally, Chapter 7 Bankruptcy is not the best tool for dealing with deficiencies on home and auto loans. Chapter 13 Bankruptcy is generally a much better tool for dealing with mortgages and car loans; however, if all you are looking for is just a little bit more time in your home or car, a Chapter 7 should get you at least another month or so.
I Can Only Afford the Monthly Minimum on My Cards, the Balances Keep Going Up, Can Chapter 7 Bankruptcy Help
The biggest scam out there is that you are current on your cards if you are making the monthly minimums. You aren’t current. You are paying the Vig to a loan shark not to break your legs. In exchange, the lender is making money selling you the delusion that you are current. The balances never go down and the credit card lenders keep making money off you.
If you are only paying the minimum required payment on your credit card bills each month (generally about 2% of the outstanding balance), and the interest rate is 20%, it will take you over twenty years to pay off a $10,000 debt. Is this really where you want to be? Filing a bankruptcy with Phoenix Fresh Start Bankruptcy Attorneys will eliminate these debts and allow you to get a meaningful fresh start.