When your financial situation has gotten to the point that you are considering bankruptcy, it is easy to let fear take hold and push you to pursue a fast remedy. Quick decisions in bankruptcy can often lead to more financial troubles down the road, and taking a moment to understand the process can benefit you in the long run.
Our Phoenix bankruptcy lawyers at Curry, Pearson & Wooten, PLC believe in a well-planned strategy to approaching a bankruptcy. We want you to feel fully informed and comfortable moving forward with your case, and this generally involves two initial steps:
A careful analysis of your financial situation ensures that all parties (namely you and your attorney) are fully aware of what you stand to lose in a liquidation or reorganization.
- A full inventory of your assets helps us to determine how to proceed with your case. If you have too many assets, you may not be able to take full advantage of your bankruptcy, so we will advise you how to proceed.
From here, we can determine whether you best qualify for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. A Chapter 7 case seeks to eliminate your debts and sell your nonexempt assets back to your creditors, and is known as a liquidation bankruptcy. This type of bankruptcy works best for people with little to no income or assets.
A Chapter 13 bankruptcy, better known as a reorganization bankruptcy, is best for people with a steady income that will be able to pay back a portion of their debts through a scheduled payment plan. Many people choose this option since it generally allows them to keep all property and assets.
One thing is certain in your bankruptcy case—it should be specifically tailored to your financial condition and your needs. Speaking with the right Arizona bankruptcy lawyer can help you move forward confidently. Call Curry, Pearson & Wooten, PLC today to set up a free consultation to discuss your options; we can be reached at 602-258-1000 or toll free at 888-929-5292.