Phoenix Bankruptcy Law News

Debt Relief Options in Phoenix

In today’s tough economic times, crushing debt can be a seemingly impossible obstacle to overcome. Possible foreclosure, repossession of assets, and defaulting on debts are haunting consumers throughout the country. Luckily, there are a variety of debt relief options available to debtors. From credit counseling to debt management and planning, various agencies and organizations are available to work with your creditors and ensure that there are debt relief options available to consumers.

Creditors may have the option of taking legal action, such as liens and foreclosure against you, but as a consumer, you have rights that protect you as well. If you are faced with mounting debt and would like to learn more about debt relief options, a Phoenix Bankruptcy attorney can tell you about possible legal solutions to your financial situation.

Recently in Debt Relief Options Category

Do I Still Owe Taxes After Bankruptcy?

Does bankruptcy relieve your tax obligations? It's a common question debtors ask this time of the year.

Whether you owe taxes after bankruptcy will depend on a variety of factors, including the type of bankruptcy case you filed and the type of tax obligation at issue.

In some circumstances, bankruptcy law permits the discharge of tax debt. Generally, it's more feasible in Chapter 7 than in Chapter 13 bankruptcy.

3 Lessons From Mt. Gox Bankruptcy

Mt. Gox was a leading Bitcoin exchange that recently filed for bankruptcy protection, TechCrunch reports.

Though the company filed for bankruptcy in Japan, its filing serves as a cautionary tale to business owners in the U.S. about bankruptcy issues that come with entering highly volatile financial arenas of business.

Here are three legal lessons from Mt. Gox's bankruptcy filing:

85% of Arizona Bankruptcies Were Chapter 7 in 2013

Arizona residents file for Chapter 7 bankruptcy far more than they do Chapter 13, according to the U.S. Bankruptcy Courts' statistical findings for 2013.

According to these statistics, 19,513 residents filed for Chapter 7 bankruptcy in the state last year. By contrast, only 2,935 individuals filed for Chapter 13 bankruptcy. Why the stark divide between Chapter 7 and Chapter 13?

Here are a few reasons why people might favor Chapter 7 over other forms of bankruptcy:

What Is Bankruptcy Court?

Bankruptcy courts have exclusive power to hear all bankruptcy cases. Judges in bankruptcy court are authorized to make the final decisions on your case.

Bankruptcy courts operate on a federal level. In Arizona, there are five federal court locations throughout the state that hear bankruptcy cases. Although federal laws govern bankruptcy proceedings, there are local rules and exemptions that apply only in Arizona.

So how do bankruptcy courts fit into the overall justice system?

Bankruptcy Filings Lowest in Years, Who Still Needs to File?

Good news for Arizona -- bankruptcy filings are low this year. In fact, 2013 marks the lowest number of filings since May 2008.

This year 16,425 Arizonians filed for bankruptcy, compared to the 20,156 filings in 2012, according to AZCentral. Specifically in the Phoenix metro area, bankruptcy filings were down 19.1 percent this year.

While the drop in bankruptcy filings may be a sign of better financial times ahead, it's still important to know what to do if you ever need to file.

Top 5 Bankruptcy Myths Debunked

The word "bankruptcy" alone is enough to make people shudder. Part of that is because it's a difficult process, but part of it is also because of bankruptcy myths that make it seem even worse.

Sure, the process isn't pleasant, but many people don't even really understand what that process is. That means they have no way of knowing whether it's the right choice for them.

To help set the record straight, we wanted to break down some common myths about bankruptcy and give some real information about what the process involves. Then you can make an informed decision about whether bankruptcy can help you.

Debt Relief: Top 3 Alternatives to Filing for Bankruptcy

When you’re swimming in bills, it can seem like there’s no way to get debt relief. But there are alternatives to bankruptcy, even if your situation seems hopeless.

The benefit of filing for bankruptcy is that the process is well-established. There are specific papers to fill out and sign, certain procedures to follow in court, it’s easier to predict.

If you opt for alternative debt relief, you may have to blaze your own trail.

But the benefit is that you don’t have to deal with the downsides of bankruptcy, which are also mandated. So we have some suggestions of routes you can take that might help you deal with your debt without ruining your credit score.

Is It Time to File for Bankruptcy?

The idea of filing for bankruptcy is intimidating and, unfortunately, the process is designed that way. Lawmakers don't want to make walking away from debt the easy option.

After all, everyone has some amount of debt. If we could all easily shed that every time it accumulates, it would seriously damage how credit works. But sometimes debt gets out of hand, which is what bankruptcy is for.

But when is there enough debt to file for bankruptcy? That depends on the kind of debt you have and how much you've accumulated.

Top 3 Bankruptcy Tips of 2012

With the economy still in shambles, bankruptcy is on many people’s minds. But is it the right move for you?

Over the past year, we’ve covered a number of alternatives to bankruptcy. Here are our top three tips of 2012. Hopefully, they’ll get you on the right track to financial recovery in 2013.

Today, more than 90% of private student loans require co-signers, up from about 50% six years ago, The Wall Street Journal reports.

That means more and more parents and grandparents are on the hook for student loans when young graduates can't pay. As a result, many parents and grandparents are forced to file for bankruptcy.

Shedding student loan debt in bankruptcy, however, is far from a walk in the park.