{"id":3368,"date":"2020-09-29T07:49:40","date_gmt":"2020-09-29T07:49:40","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3368"},"modified":"2020-09-29T07:49:40","modified_gmt":"2020-09-29T07:49:40","slug":"filing-bankruptcy-can-save-you-from-deep-debts","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/filing-bankruptcy-can-save-you-from-deep-debts\/","title":{"rendered":"Filing Bankruptcy Can Save You From Deep Debts"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Have you ever wondered why other people are considering bankruptcy when there\u2019s so much negativity surrounding it? Indeed, filing bankruptcy is not for everyone. But the sad reality is that those who should file, avoid bankruptcy due to the stigma. This article will provide you a fresh perspective as to why bankruptcy should be seen more like a \u201clifebuoy\u201d that will get you out of deep debt, instead of an \u201canchor\u201d that financially limits your movement.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Negative_Connotations_on_Bankruptcy_Declarations\"><\/span><strong>Negative Connotations on Bankruptcy Declarations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6627322c336d5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6627322c336d5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/filing-bankruptcy-can-save-you-from-deep-debts\/#Negative_Connotations_on_Bankruptcy_Declarations\" title=\"Negative Connotations on Bankruptcy Declarations\">Negative Connotations on Bankruptcy Declarations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/filing-bankruptcy-can-save-you-from-deep-debts\/#Bankruptcy_is_a_Life_Saver\" title=\"Bankruptcy is a Life Saver\">Bankruptcy is a Life Saver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/filing-bankruptcy-can-save-you-from-deep-debts\/#Bankruptcy_is_Debt_Forgiveness\" title=\"Bankruptcy is Debt Forgiveness\">Bankruptcy is Debt Forgiveness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/filing-bankruptcy-can-save-you-from-deep-debts\/#Start_The_Bankruptcy_Process_Today\" title=\"Start The Bankruptcy Process Today\">Start The Bankruptcy Process Today<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Most filers who feel that they\u2019ll benefit from submitting bankruptcy petitions are hindered by feelings of guilt and shame. Seeing bankruptcy as a sign of financial failure is a common misconception. The truth is if you file a bankruptcy, it means you\u2019re actively seeking a way to eliminate your debts and protect yourself from creditors who may have been harassing you for payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another misconstrued belief is that once you file for bankruptcy, you\u2019ll ruin your future finances due to its impact on your credit report. Although it does affect your credit score, there are easy steps to rebuild credit after filing bankruptcy and it will actually improve your current financial situation by wiping out most of your debt.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bankruptcy_is_a_Life_Saver\"><\/span><strong>Bankruptcy is a Life Saver<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright size-medium wp-image-3373\" src=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-300x300.jpg\" alt=\"when to file bankruptcy\" width=\"300\" height=\"300\" srcset=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-66x66.jpg 66w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-100x100.jpg 100w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-150x150.jpg 150w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-200x200.jpg 200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy-300x300.jpg 300w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/09\/file-bankruptcy.jpg 338w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>If you are truly unable to give the minimum payments for your mortgages and loans anymore, then you are the best candidate for bankruptcy. When evaluating bankruptcy cases, the court will look at filers\u2019 debt-to-income ratio to check if your earnings are less than what you owe, making it impossible for you to pay back your lenders.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re a minimum wage-earner and your family is suddenly faced with a medical emergency, bankruptcy can also save you from the stress of emptying all your savings account or having insufficient funds to cover medical bills, medicine, or therapy costs, especially when you have other financial obligations like a car loan, home mortgage, or student loan. Among the debts nonexempt from being discharged by the bankruptcy court is your credit cards\u2019 outstanding balance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have saved up a good sum in your retirement account, personal bankruptcy can also save you from losing your most viable financial source once you stop working. Money in retirement accounts usually gets protection under bankruptcy laws as they are exempt from bankruptcy discharge.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bankruptcy_is_Debt_Forgiveness\"><\/span><strong>Bankruptcy is Debt Forgiveness<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Instead of nailing your debts to a wall for your lenders and everyone else to see, a bankruptcy petition actually forgives debts and makes you forget your financial burden. It is not uncommon for other Americans to consider bankruptcy, with over half a million filing a case annually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To maximize the benefits of bankruptcy for you, study the different types of bankruptcy, also called chapters, and understand their implications.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you choose <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/arizona-chapter-7-bankruptcy\/\">Chapter 7 bankruptcy<\/a>, your dischargeable debts get eliminated at the cost of giving up nonexempt properties to a bankruptcy estate for liquidation and to repay your lenders. Not all assets are seized as everyday items such as home furnishings and clothes are exempted. After bankruptcy, it generally stays on your credit record for a number of years which you can remedy by taking steps to prove that you are committed to paying future loans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/chapter-13-bankruptcy-phoenix-arizona\/\">filing Chapter 13<\/a> may stay on your credit report for a shorter duration than a Chapter 7. However, choosing this type of bankruptcy means you have enough monthly income to pay back your creditors under an extension which is called a repayment plan. This gives you an extra three to five years to pay off debts free of interest.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless of which chapter you file, seek the advice of a bankruptcy attorney to determine the best lifesaver befitting your circumstances. You will need to initially cover bankruptcy costs such as attorney and filing fees, but you\u2019ll get to save money in the long run by making the best bankruptcy decision early on.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Start_The_Bankruptcy_Process_Today\"><\/span><strong>Start The Bankruptcy Process Today<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re facing income loss, high amounts of unsecured debts, staggering medical bills, the possibility of home foreclosure or divorce, lawsuit from creditors, or wage garnishments, filing for bankruptcy can be your lifebuoy to get out of these dark waters.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An experienced bankruptcy lawyer from <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\"><strong>Phoenix Fresh Start<\/strong><\/a><span style=\"font-weight: 400;\"><strong> Bankruptcy Attorneys<\/strong> can give you legal advice on how to prepare for the means test prior to filing bankruptcy and shall go over the list of your debts, assets, and properties before handing it over to the bankruptcy trustee who will manage your case.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t miss your chances of regaining financial freedom and getting that fresh start. Contact one of our bankruptcy attorneys for a free consultation today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever wondered why other people are considering bankruptcy when there\u2019s so much negativity surrounding it? Indeed, filing bankruptcy is not for everyone. But the sad reality is that those who should file, avoid bankruptcy due to the stigma. This article will provide you a fresh perspective as to why bankruptcy should be seen more like a \u201clifebuoy\u201d that will get you out of deep debt, instead of an \u201canchor\u201d that financially limits your movement.\u00a0 Negative Connotations on Bankruptcy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3372,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3368"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=3368"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3368\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3372"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}