The New Year is almost open us, and many Arizona residents may have begun listing their resolutions and wondering how successful they will be in keeping to them. Those who pledge to spend less money and tear up their credit cards may not be able to follow those resolutions to the letter, which could leave them facing overwhelming financial challenges and uncertainty. What can these individuals do to find debt relief and really start their New Year off right?
One thing they can consider is filing for bankruptcy. Chapter 7 bankruptcy, also known as liquidation bankruptcy, is an option available to those whose income falls within certain requirements. Through this option, some of the filer's assets will be sold in order to pay off their debts. Many debts remaining after this process is completed will then be forgiven. This means most unsecured debts will be discharged through bankruptcy. However, filers do not have to worry about losing all their assets. As mentioned in last week's post, there is an extensive list of bankruptcy exemptions available to filers and they can keep possession of those assets.
The perceived social stigma attached to filing for bankruptcy no longer exists to the same degree, as more and more people face financial difficulty through no fault of their own. Financial challenges, in the form of health problems or the loss of a loved one, are mostly out of the debtor's control. One way to stop debts from spiraling out of control is to file for Chapter 7 bankruptcy.
Chapter 7 bankruptcy not only wipes out most debt but also puts an end to much hated creditor harassment and wage garnishment. It is an option to consider for Arizona residents who want to get out of the cycle of debt in the New Year.
Source: US Courts, "Chapter 7: Bankruptcy basics," Accessed on Dec. 22, 2015