Should I File for Bankruptcy in Arizona?

The decision to file for bankruptcy in Arizona is never easy. But there are some common signs that may indicate it is time to consult with an experienced bankruptcy lawyer.

Your Debt Equals Half of Your Income

If your debt reaches half of your income – or even close to half of your income – it is time to seriously consider whether it can be fully repaid in a reasonable time. The truth is that a debt burden of half of your income will be very challenging to repay and you may consider the need to file for bankruptcy.

You Use Credit Cards to Pay Bills

If you cannot afford to pay your monthly living expenses without resorting to a credit card, it is time to talk with a bankruptcy attorney. Paying rent, utilities, food, medication, or other expenses on a credit card with no hope of paying the ever-increasing balance is a never-ending cycle. No matter the reason, delaying is only digging the hole deeper with every credit card charge.

You Took a Home Equity Line of Credit to Pay Bills

Using a HELOC to pay down debt is only trading one problem for another. While you may feel relief at lowering the credit card balances or medical bills, you have raised your mortgage obligation, turned unsecured debts into a debt secured by your home, and created a longer term problem. If you qualify to file for bankruptcy, you may still be able to keep your home and, in certain instances, you may be able to remove the lien created by the HELOC from your home.

You Emptied Your Retirement Savings to Pay Bills

Using your retirement savings to pay bills robs your future of the very stability that retirement savings, 401Ks and IRAs were meant to provide. Before you consider liquidating your future financial security, consult with an experienced bankruptcy lawyer as soon as possible.

No one wants to file for bankruptcy. But there are many times when doing so will be one of the best decisions you ever made. You will feel relief, you will gain control, and you will emerge from bankruptcy with more options than you have now. Radix Law, in Phoenix and Scottsdale, AZ, offers free consultations to help you understand if bankruptcy is the right decision for you.

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