Number of Times Phoenix Citizens Can File for Bankruptcy

Unforeseen problems such as unemployment, high medical bills, divorce expenses, and other economic difficulties that occur in the lives of Arizona residents may make it hard for them to file for bankruptcy. Most people in Phoenix file for bankruptcy just once in their lifetime; however, some financial difficulties that may occur after the completion of a bankruptcy period may prompt you to file for another bankruptcy after lacking any other option.

Chapter 7 Bankruptcy

If you reside in Arizona, the law permits you to file for Chapter 7 type of bankruptcy after six years of filing your previous bankruptcy. The Chapter 7 states that any individual who files this bankruptcy should be discharged of most of the debts owed to different debtors.  These debts to be exempted do not include tax debts, child support, alimony, and student loans. Before filing for this bankruptcy, you ought to have accumulated huge credit card debts that have high interest rates or have amassed medical bills.

Chapter 13 Bankruptcy

Chapter 13 of the bankruptcy also allows you to file bankruptcy any time. For Arizona residents, filing for this bankruptcy offers an opportunity to reschedule debts by making lower payments thereby preventing home foreclosures. If you avoid debt discharge via filing for a Chapter 13 bankruptcy, your credit score is not negatively affected unlike when you file for a Chapter 7 bankruptcy. Chapter 13 bankruptcy is similar to debt consolidation and gives debtors and creditors an opportunity to work together and negotiate, and can be filed for whenever you experience changes in the availability of income due to unemployment or health issues.

It is unusual to file a Chapter 13 bankruptcy more than once, but filing a Chapter 7 bankruptcy repeatedly maybe unsuccessful. This is because judges are easily angered by people who file for bankruptcy more often thereby they end up abusing the bankruptcy laws. Whenever the weight of medical expenses gets so heavy on you, filing for a Chapter 7 bankruptcy could be the only way to get yourself out of this tough financial situation.

If you find yourself in a tight financial situation and bankruptcy could be the only option to save your situation, do not hesitate to call up a professional bankruptcy attorney in Tucson, Arizona. The attorney will assess your financial situation and give you relevant expert advice to help you overcome your financial strains.