When is the Best Time to File Bankruptcy in Arizona?

If you are considering declaring bankruptcy in the state of Arizona, you should know the timing of this important event matters a great deal. There really is a right time and a wrong time to file bankruptcy in Arizona. Consult with an experienced Arizona bankruptcy attorney throughout this process and you will strategically time your bankruptcy to benefit your interest as opposed to that of your creditors.

Be Patient When Considering Bankruptcy

If you are experiencing financial distress, don’t assume bankruptcy is the solution. It might be possible to work out payment plans with creditors. Delaying the filing of bankruptcy is also logical in that waiting can maximize the benefits of this important legal action. Your bankruptcy attorney in Arizona will help you determine if it is in your interest to file for bankruptcy and whether now is the right time to file.

If you are resorting to credit cards to pay your monthly bills or have maxed out your credit cards, there is a good chance you can benefit from filing bankruptcy sooner rather than later. Furthermore, if you have already attempted to negotiate a payment plan with creditors and could not reach a resolution, bankruptcy might be the only reasonable option. Above all, if you owe money to half a dozen or more creditors and are unemployed or unemployed, it is logical to consider filing for bankruptcy sooner rather than later.

What About the Garnishment of Wages?

Arizona bankruptcy attorneys are often asked if it is prudent to file for bankruptcy immediately after creditors begin garnishing wages. If your wages or bank accounts are being garnished or if you face the threat of such garnishment, bankruptcy is likely the only legal means of putting a stop to the garnishment. Chapter 13 bankruptcy stops repossessions and foreclosures, providing an opportunity to resume payments and stop garnishments. Chapter 7 bankruptcy will halt garnishments altogether. Your Arizona bankruptcy attorney will guide you through these options, helping you select the one that is best for your unique financial situation.

Take Your Time and Consult With an Arizona Bankruptcy Attorney

The moral of this story is it is a mistake to rush into filing for bankruptcy in Arizona. If you have minimal debt and only missed a couple payments, the ramifications of going bankrupt do not justify the actions. Instead, attempt to negotiate the debt. Agree to a payment plan with the creditor and you will safeguard your credit rating, setting the stage for the use of lines of credit in the short-term and also in the years ahead. The alternative is going bankrupt and spurring a seven-year penalty during which you cannot obtain a loan or line of credit.

In general, it is a good idea to consider all potential options before going bankrupt. You are limited to one bankruptcy every five to eight years. Retain your option to file for bankruptcy just in case you need it down the line and you’ll have that much more room for potential financial missteps as time progresses.

Will You Soon Incur Debt That is Unavoidable?

If you anticipate incurring unavoidable debt, it doesn’t make sense to declare bankruptcy. As an example, if you are scheduled to undergo a surgery or receive another form of expensive medical treatment and don’t have sufficient healthcare insurance coverage, it is better to wait until those bills arrive to file for bankruptcy rather than filing prematurely.

However, it must be noted the debt in question might not prove dischargeable. Meet with an experienced Arizona bankruptcy attorney, review all of your options and you will be able to move forward in full confidence.