Despite staggering debt, many Arizona residents may still be hesitant to file for bankruptcy because they are embarrassed to do so. Another misconception many people may have is that they lose everything by filing for bankruptcy, but the truth is that the only thing they debtors lose is most of their bills, wage garnishments and even endless creditor harassment. There is a long list of bankruptcy exemptions in Arizona, including the house people live in and even some of their assets in the house, such as household furniture, books, beloved pets and clothing.
While people may not see bankruptcy as a good option, as unemployment and expenses rise and wages decrease, the reality is that many people are struggling with their finances and sometimes the only way to get a fresh start is by clearing the slate by filing for either Chapter 7 or Chapter 13 bankruptcy.
Furthermore, it is also possible to get exemptions on life insurance benefits, child support payments and even pension and retirement accounts in some instances.
In addition to this, analysts claim that economic growth and consumer and business confidence are increasing throughout the country despite personal bankruptcies and foreclosures flooded courts. According to analysts, the mechanism for clearing debts and beginning afresh financially is an effective process in America and clears the way for people to move on with their lives and try something new. This is in comparison with other countries where filing for bankruptcy is a much tougher process -- not being able to clear debts, analysts argue, has hampered economic growth in other countries which are struggling financially.
Arizona residents considering filing for bankruptcy should keep in mind not only the mental ease the process offers, but also be encouraged by the extensive list of exemptions offered in their state. In addition to this, they may also be encouraging growth within the economy.
Source: The Wall Street Journal, "Why a flood of bankruptcies is good for America," Michael Casey, Feb. 6, 2013