Sometimes we can control our financial situations. Sometimes we cannot. The reality of bankruptcy is that most people never intended to end up there. Many fight as long as possible to avoid it. In these trying times, even with the pandemic slowly resolving, many people are confronting unexpected medical bills, job losses and increasing interest rates on mortgages and credit cards. As a result, many people find themselves with a debt burden they cannot overcome.

The federal bankruptcy laws (and Arizona laws that apply in bankruptcy) are designed to protect people from an unreasonable debt burden. No matter how you got there – job loss, medical bills, mortgage or credit card default, skyrocketing expenses, divorce, job loss, or health issues – you may be able to find relief by filing for bankruptcy. The first step is to consult with an experienced bankruptcy attorney who will help you make a plan for a better future.

Early legal consultation is important. It may be that you need to stop making payments on debts that you cannot repay, such as credit cards and mortgages on properties you plan to surrender. Planning is important. Certain transfers of property are allowable before bankruptcy, but many are prohibited, like changing title to certain assets or transferring assets to family members. In bankruptcy, people can often keep most of their possessions, but full disclosure about your assets and any transfers must be made. It is very important to understand how legitimate prebankruptcy planning may be able to protect some of your assets.

While a bankruptcy filing will have an adverse effect on your credit score, you will be able to rebuild your credit faster than you may think. More importantly, the discharge of your debts will allow you to build a better future.

Once your bankruptcy petition is filed, all the collection phone calls and letters will stop, allowing you to regain your peace of mind.

Try to make peace with your situation. The federal bankruptcy laws exist to allow honest people to get a fresh start.