Besides these financial concerns, there is another problem that Arizona residents who find themselves in this type of situation will likely face: creditor harassment. When the bills are piling up, creditors may begin to take action to attempt to recover what is owed. At first, it may begin with dozens of letters and phone calls, but this can easily lead to collection actions.
In order to stop creditor harassment, some Arizona residents can take advantage of the protections of Chapter 7 bankruptcy. This type of bankruptcy filing, which is also known as "liquidation" bankruptcy, can be an efficient solution for wiping out debt. But, one of the biggest perks of filing for bankruptcy is that once the documents are filed an automatic stay on creditor collection efforts is ordered. This means that creditors must cease all collection efforts while the bankruptcy filing is pending.
Debt problems can cause a great deal of worrying and potential family disputes over finances. When creditor harassment is throw in as well, the tension will probably only increase. Filing for Chapter 7 bankruptcy can be a means of facing these financial challenges, as well as being the first step on a path toward a fresh financial start.
Source: United States Courts, "Chapter 7 - Bankruptcy Basics," accessed Nov. 3, 2015