Some General Benefits of Bankruptcy in Arizona
Discharge – A successful filing will result in you receiving a “discharge”. The discharge relieves your legal obligation to pay credit card debt, medical debt, pay day loans, lines of credit, old tax debts, most lawsuit judgments and some others. It is the discharge which really allows you to get a fresh start after bankruptcy.
Foreclosure – As long as a Tucson bankruptcy filing happens before the actual day of the trustee dale than any foreclosure will be stopped, at least temporarily. If you chose to file chapter 13 than you may be able to keep the house so long as you can make the payment plus a little extra to cover the delinquency over the life of the chapter 13 plan. If you chose to file chapter 7 than you will eventually have to either refinance the loan on the house or pay the delinquent portion of the debt to keep the house.
Garnishment – As soon as a bankruptcy is filed any garnishment proceeding will stop.
Repossession – Filing bankruptcy will prevent the repossession of a vehicle and give you a little time to catch up the payments.
Automatic Stay – When an Arizona bankruptcy is filed all of your creditors are forbidden from any collections attempt including phone calls, letters, lawsuits, repossessions, foreclosures, etc.