There might be some questions you need to ask before filing for bankruptcy. This is a huge financial step would need thorough consideration in order to be sure this is the right decision for you. Arizona bankruptcy lawyers will guide you through the whole process-filing the paperwork for you and providing you with AZ bankruptcy forms.

People who are considering bankruptcy have the some of the FAQs below. It may provide you with more insight to help you formulate a decision.

What are the advantages of bankruptcy?
The biggest advantage is that most of your debts are eliminated. You no longer have the obligation to pay them and it will stop creditors from harassing you through phones calls and letters.

What's the difference between Chapter 7 and Chapter 13 bankruptcy?
In a Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, your non-exempt assets are sold for distribution to the creditors involved. In Chapter 13, you are made to come up with a repayment plan that will allow you to pay your debt within 3-5 years.

Will bankruptcy prevent my property from getting repossessed?
For Chapter 7, you may be able to keep most if not all of your property under Arizona exemption laws. If you stay current on payments on mortgages and car loans, you may be allowed to keep certain items you declare exempt such as your house or your car.

What debts cannot be discharged if I declare myself bankrupt?
Back child support, alimony, some tax debts, and student loans are some of the debts that might not get discharged.

Will my credit score be affected?
It will likely get affected. Credit reports reflect bankruptcies from 7 to 10 years.

How long do bankruptcy cases take?
For how long the bankruptcy case will take all depends on which type of bankruptcy you opt to file. Chapter 7 typically lasts between 3 to 6 months. Depending on your repayment plan, a Chapter 13 bankruptcy may take between 7 to 10 years to complete.

Not all cases are the same and Arizona bankruptcy lawyers will be helpful in sorting out the financial details of your situation. In doing so, you are placed at a great advantage in getting a better financial position in the coming days.