Bankruptcy is a legal proceeding handled in Federal Court. Bankruptcy allows an individual who cannot pay his or her bills can get a fresh financial start by discharging some or all of their debt.
Filing for bankruptcy is a right provided by Federal Law. Filing for bankruptcy in Gilbert immediately stops all creditors from seeking to collect debts from you. Bankruptcy allows a person relief from creditors at least until your debts are sorted out according to the law. Contact a Gilbert bankruptcy lawyer for more information regarding the bankruptcy process in Arizona.
It now costs $335 to file for bankruptcy under chapter 7 in Arizona and $306 to file for bankruptcy under chapter 13 in Arizona. The court may allow you to pay this filing fee in installments if you cannot pay all at once. Our Gilbert bankruptcy attorney can advise you more on Arizona filing fees. If you hire a bankruptcy lawyer in Gilbert, you will also have to pay the attorney’s fees you agree to pay.
Thus, the costs of bankruptcy can be broken down into 2 fees that need to be paid. The aforementioned bankruptcy filing fee and the bankruptcy attorney’s fees.
There are many variables that come into play when answering this question. Chances are that if you are filing for bankruptcy in Arizona, your credit score is probably pretty low. Filing bankruptcy will probably not make things any worse, in some rare cases, filing bankruptcy may even increase your credit score. Filing bankruptcy gets rid of all of your debts and provides a better debt-to-income ratio for those who declare bankruptcy.
A downfall of filing bankruptcy in Arizona is the fact that a bankruptcy can appear on your credit record for up to ten years. However, since bankruptcy wipes out your old debts, you are likely to be in a better position to pay and stay current on your bills. In the long run, filing bankruptcy, along with staying current on your payments, should lead to an improvement on your credit score.