Benefits of Bankruptcy

Clean Slate

Filing for bankruptcy can be a scary process to say the least. To begin with, individuals who may be eligible for bankruptcy are likely facing serious, often insurmountable debt. Persistent collection attempts from collectors and other creditor misconduct can cause unnecessary stress both for debtors and loved ones alike, and the ability to get out of debt in the face of ever-mounting debt is all but impossible. There are many different bankruptcy myths that can keep individuals from finding the debt relief they need, but the benefits far outweigh the bad.

Arguably the largest benefit to bankruptcy is that, because there are so many options, you can find a solution that is nearly tailor-made to fit your situation. There is no one-size-fits-all for bankruptcy, in other words. One question that people often ask is, "if not all debts can be discharged by bankruptcy, how would bankruptcy benefit me?" The answer is simple. Although bankruptcy cannot discharge student loans or alimony, for example, it can discharge other debts to free you up to be able to pay your mandatory debts.

The very act of entering into bankruptcy proceedings requires creditors to cease all contact with the debtor as per the restrictions outlined in the Fair Debt Collection Practices Act. This is called an automatic stay, and it significantly decreases the pressure you are feeling from your creditors so that you can focus on managing your debts. Filing for bankruptcy can also allow you to keep certain properties such as a home, vehicle or possessions.

Asset Protection: Arizona Exemptions

Arizona has unique laws when it comes to exempting property from liquidation. Liquidation is the process of your property being sold in order to remediate part of your debts. Of course, the greatest benefit of filing for bankruptcy is the ability to finally be free of overwhelming debt so that you can start fresh and take control of your financial life. Even those who qualify for Chapter 13 bankruptcy will benefit from having their debts and interest rates restructured to a manageable level.

According to Arizona law (A.R.S. § 33) there are many assets that an individual or family can declare exempt. For example, homestead exemptions (involving any real property) can include an amount up to $150,000. For personal property, a husband and wife may double all personal property exemptions. For example, an individual can keep one living room couch while a husband and wife could keep two.

Bankruptcy Guidance and Support Services

Despite the many benefits of filing for bankruptcy, the associated negative stigma can hold many debtors back from the debt relief they truly need. For 20 years, Price Law Group has successfully worked with clients to help them through the bankruptcy process through accurate information, actionable advice and expert-level support services. The firm focuses on providing the invaluable insight, guidance and other services that enable individuals to find relief from overwhelming debts that cannot be resolved any other way.