Things to Consider Before Filing for Arizona Bankruptcy
Filing for bankruptcy is a huge decision, that will have an impact on your life for years to come. This impact can be good, and it can also be bad. For most people, it is a huge relief with some negative side effects. But no matter what your situation, below are a list of things you need to consider before you file for bankruptcy.
(1) Whether you are eligible. It may not even occur to you, but there some limitations on who can file for different types of bankruptcy. And it may turn out that you don’t want to file the type of bankruptcy you are eligible to file for.
(2) The effect a bankruptcy will have on your spouse or co-signor. This is a big one, because the type of bankruptcy you file can make a huge difference on the impact bankruptcy has on your spouse or co-signor. Do you have a co-signor, and are you married? Would you consider filing jointly? Who has most of the debt between the two of you?
(3) The kinds of debt you have. If your debt is mostly secured, that can make a huge impact on whether Chapter 7 bankruptcy is much assistance to you.
(4) Why you are in financial difficulties. This is something many people do not consider before they file. Are you having trouble making ends meet because of an unexpected illness or sudden divorce? Or is it more of a lifestyle issue and habit problem? If the issue is something ongoing, you may consider changing habits instead of or along with a bankruptcy filing. If you don’t, you could find yourself in need of bankruptcy help again sooner than you can get it.
(5) Whether you need/want your car and home? And on the flip side, are you willing to give these up, or get a cheaper home or car? These are personal choices everyone needs to consider before filing for bankruptcy. If you know what you are willing to do, you can ask your bankruptcy attorney about the options available for you.
Before you file for bankruptcy or make any huge decisions, talk to a bankruptcy attorney. For instance, if you decide your car is too expensive but will need a car, consider talking to an attorney before you buy a cheaper car. If you don’t, you may have fewer options in bankruptcy. The best way to enter a bankruptcy is with the right information and a great plan, so make sure you have these two things before you file.