Chapter 13 bankruptcy can be a great way to recover for many people who are in over their heads with their mortgages, especially if that debt is severely creeping into other financial aspects of their lives. As we all know, finances are a huge source of mental and emotional strain — as of the early 2000s, finances actually trumped children as the #1 reason for divorce in Arizona. Given that this is the case, knowing if Chapter 13 is the best choice for you will allow you to sigh a breath of relief… probably for the first time in a long time.

Chapter 13 might be for you if:

• you need to stop a foreclosure, or garnishment of your wages, or are on the brink of having a car or other large ticket item repossessed;
• if you have completely had it with unfair creditor practices, including harassment via phone, e-mail, or even at your own front door;
• if you think you’d be able to handle one payment per month to pay off your debt once your debt is reorganized — keep in mind that this one payment means:

1. you will not have to directly interface with creditors,
2. you will not have to pay interest,
3. your debts will be prioritized for you by a trustee,
4. you’ll have (generally) three to five years to pay off your debt so you can actually get some much needed relief!

Have you had it with all the anger being aimed toward you during harassing phone calls? Are you ready to actually sleep instead of lay in bed worrying?

Find out if Chapter 13 is the right choice for your AZ bankruptcy filing — if it’s not, Thompson Law will find another way to get you the debt relief you need! (480) 634-7480 or e-mail us by clicking here!

It never seems to be quite clear who is eligible to file for which chapter and which one is best suited to every individual’s unique needs. Perhaps all the convolution is due to the fact that filing bankruptcy in Arizona and the rest of the country has ramped up every single quarter since the first quarter of 2009.  In fact, the first quarter of 2009 — now a tad more than a year ago — experienced  a 33% increase in personal bankruptcies from the same quarter in 2008. Wow. Okay, so let’s start with just ONE kind of bankruptcy: Who is Chapter 7 for?

Chapter 7 is for those who need to liquidate their assets in order to pay the creditors that they owe. Of course, it is a little more complicated than that, for example, the bankruptcy code has established WHO is eligible for Chapter 7 Bankruptcy based on a number of criteria — but before you get wrapped up in that, read on and see if the below scenario sounds like you. Then your bankruptcy attorney can decide if you meet the criteria. If you don’t, then the next step will be to look into Chapter 13, but we’ll get into that later.

If you:

• are overwhelmed with credit card debt, medical bills, personal loans, or payday loans to the point where you can’t make utility payments or pay your mortgage, Chapter 7 may be right for you.
• are unable to pay all your bills, eat, and pay for basic essentials for your family, Chapter 7 may be right for you
• are paying some bills one month, and others the next to avoid utility shut-offs, Chapter 7 may be right for you
• opt not to pay all your bills each month because you know this will put your bank account(s) in a negative balance, Chapter 7 may be right for you.

Visit Thompson Law Firm today or give us a call at (480) 634-7480. We can help you determine whether Chapter 7 bankruptcy is right for you. Filing bankruptcy in Arizona doesn’t have to be scary — let Thompson help you get started!

Is bankruptcy is right for you? Are you just not sure? Do you even really know what bankruptcy is? Here are the two main types of personal bankruptcies consumers just like you can file. Check out the differences and see which – if either – is a good fit for your current financial situation. You can always call Thompson Law to ask questions about Arizona bankruptcy by dialing 480.634.7480.

All bankruptcy candidates will want to check into pre-bankruptcy homework and the bankruptcy checklist to get started on all the required moves toward bankruptcy of any kind.

Chapter 13 Debt Reorganization

Chapter 13 debt reorganization is used when a person wishes to hang on to her property and/or other assets. Chapter 13 can be extremely effective for the right candidates.

So who are the right candidates?

Candidates for Chapter 13 have secured debt (debt secured with collateral against a loan) of more or less $1 million and unsecured debt (debt not collateralized with assets or a lien) of approximately $340,000 or less

The pros of Chapter 13

• By spreading out what you owe over a longer period, you’ll keep all or most of your property
• No direct contact with creditors
• Simple once a month payment after filing
• Anywhere from 3 to 5 years to catch up on debt
• You’ll be allowed to maintain enough income to keep up with the rest of your life

Chapter 7 Asset Liquidation

Chapter 7 bankruptcy is the liquidation of assets. It is generally used when a consumer is in over his head and doesn’t generally own as much as the Chapter 13 bankruptcy candidate.

The right candidates are…

These are consumers who pay all their monthly bills  – or what they can pay – and have very little – or nothing left over afterward at the end of each month, leaving them unable to handle any debt or monthly credit payments.

The pros of Chapter 7

• Complete protection from collector harassment and contact with creditors
• In most cases, nearly all if not all unsecured debt (debt not collateralized with assets or a lien) will be eliminated entirely
• Results obtained in an expedited manner – the Chapter 7 bankruptcy is resolved (generally) within 3 to 6 months

Neither collectors nor creditors can contact you after the debts have been discharged

So many people simply don’t consider filing bankruptcy in Arizona because they’ve bought into one of the myths about bankruptcy. Even those at the edge of their own sanity won’t file. Here are three major MYTHS about bankruptcy YOU should be aware of.

THE WHOLE WORLD DOES NOT KNOW! Filing bankruptcy in Arizona — or anywhere else — is a confidential matter. Unless your name is General Motors or Too Big Too Fail, the only people who will know about your bankruptcy are you, your attorney, the bankruptcy court, and your creditors.

NO ONE IS GOING TO COME HAUL AWAY EVERYTHING YOU OWN! The bankruptcy court isn’t going to send in someone to take your clothes and car stereo, and the bank doesn’t want your sofa or your 1982 El Camino. The whole point of Chapter 13 bankruptcy in Arizona is to reorganize debt — for consumers, this means a second shot at keeping the house, the car, and other major assets. Yes, it’s true, you’ll probably have to give up the 120 foot yacht, but in most cases, the court and creditors will work with you — after all, they want something back, and they get that with Chapter 13 rather than taking a total loss.

FILING BANKRUPTCY DOES NOT MAKE YOU A DEADBEAT! So many people labor under this misconception, and it’s what keeps them from seeking the help they truly deserve and need! Millions upon millions of Americans have already filed, and it’s not because they’re losers. When you file for bankruptcy in Arizona, you give yourself permission to begin again in an organized fashion. Feeling bad about it won’t make financial difficulties go away, and being stoic about your debt isn’t going to make you sleep better at night.

If you need to file for bankruptcy in Arizona, please call Thompson Law Firm of Phoenix and Chandler today at 480-634-7480.

Even after a bankruptcy filing, many people don’t have a great understanding of what it means to budget. Intelligent budgeting will save so much money and time, and can even keep consumers from another bankruptcy or other financial disaster. If you are considering filing bankruptcy in Arizona, you’ll want to do your pre-bankruptcy homework. But you’ll also want to taper down on spending, both to show that you are making an effort and to … well … lowering your spending!

Here are the key areas that seem obvious, but where you want to keep an eye on your spending:

1. Family fun: charging up the credit cards to go to the movies, eat out, and drink Starbucks every morning is not a good idea. Instead, pay cash or debit, and to be even more pragmatic, do things that are free — go to the park, hiking, fishing, garden, or picnic. It may not sound glamorous, but it’s cheap or free, and can engender quality family time.

2. Transportation: If you’re driving to the store back home, then back to the video store home, and so on, make a list of all the places you need to go and go once or twice a week. Cutting out the additional million trips to run errands will save tons.

3. Utilities: Unless it’s over 80 degrees inside, turn off the a/c. Don’t run water when you brush your teeth, if there’s no one in a room, turn off all lights and fans, etc. Disconnect coffee makers when not in use, and take quick showers. Again, not glamorous, but living the life of excess is not the idea, at least not right now.

If you need to file bankruptcy in Arizona, you can call Thompson Law Firm today at 480.634.7480. We can help you get started right away. You can also fill out the form to the right on this page to begin to file for bankruptcy in Arizona right now! As soon as someone has your info you’ll get a call to set an appointment to discuss your Arizona bankruptcy and debt relief options.

The mortgage meltdown all across the country has caused unprecedented loss in the value of homes. Bankruptcy is a tool that consumers and homeowners can use to reorganize debt in a manner that can save them from future heartache caused by making payment after payment and then losing a home anyway. When you file for Chapter 13 bankruptcy, you can strip off your second mortgage as secured debt on your home.

So many homeowners in the Valley are not only paying high mortgages — to add insult to injury, the value of homes with high mortgages has decreased significantly. So how does Chapter 13 bankruptcy help in this situation?

With the help of your Arizona Bankruptcy Attorney, you can get rid of a second mortgage because of the conundrum of the upside down home — the value of the home is less than the mortgage being paid. So many homeowners are eligible for this kind of second mortgage removal through Chapter 13 Bankruptcy, and they really ought to consider using it.

Chapter 13 can also do the same thing for a car or cars. The way this works is that the car loan is stripped down based on the current value of the car as opposed to paying an exorbitant loan based on what the car was worth say five years ago.

Consider Chapter 13 Bankruptcy if you are facing this situation. It can help immensely, and what’s more, financial recovery and improvements to your credit score will not take a million years, despite what consumers may have been told. A huge number of the bankruptcy clients that Thompson Law Firm has helped have rapidly returned to a healthy financial status within two years or less.

Are you robbing Peter to pay Paul every time the mortgage payment is due? Are you restless, unable to sleep, wringing your hands? Call for a consultation with Thompson Law today at (480) 634-7480. Our goal is to help consumers through bankruptcy by offering Debt Relief in Arizona.

We can’t stress enough that stripping second mortgages and car loans using Chapter 13 is such an effective tool – if this is the best option for you, we can get started right away.

Many times, those ready to file for bankruptcy in Arizona are so overwhelmed with credit card debt, an upside down mortgage, late car payments… and the list goes on.

It’s easy to lose track of who you may owe to in a world where you can get credit lines from Marshall’s Best Buy, and so on. But you have the legal right to know who you owe and to claim disputes with the credit bureaus. You are legally entitled to a FREE credit report under the Under the Fair and Accurate Credit Transactions Act.

Have you done your Arizona Pre-Bankruptcy Homework? If not, you should get started, and pulling your yearly free credit report is surely an important aspect of this project. You can get your free credit report once every 12 months by going online and visiting http://www.annualcreditreport.com.

Once you have the credit report in your hands you can review your score and the history. Is it accurate? Do you owe more or less than you thought? Will you need to file a dispute verification with one or all of the credit bureaus? If so, you will need to contact Equifax, Experian, and/or TransUnion.

Once you’ve decided to file bankruptcy in Arizona, or if you’re ready for a consultation because you’re still not quite sure if bankruptcy is the answer for you, call or visit Thompson Law Firm. There are other debt relief options, and Thompson Law can help today. (480) 634-7480.

Well, it’s not like we didn’t see this coming — in a world with just a milliliter of justice coursing through it’s veins. It’s just we weren’t 100 percent sold on the idea that that milliliter was still in the system. But here it is!

The SEC filing against Goldman Sachs may actually mean this Goliath will have to face David — and this time he may actually have his slingshot handy.

According to the SEC, Goldman Sachs premeditated and sold a sure-to-fail package to consumers… and at the expense of their own investors. While Goldman has noted they will fight to the bitter end against such allegations, the whole thing has the suits on Wall Street wondering how far this whole thing will go. In other words, will this little ditty turn into a hit album? Who will be the next on the list, and how serious is the SEC going to make this for Goldman and any others who may follow? Guys are shaking in their gators and sweating up their shark-skinned suits!

But even the most ruthless Wall Streeters usually know better than to let investors take a hit. The little guy can take as many hits as needed for Daddy Warbucks to keep the dough rolling in, but you just don’t mess with the investors — it’s the kiss of death, and no doubt the investors where the driving force that made the SEC perk up a little more than usual.

We’ll see what happens here — Goldman probably won’t be buying any package deals from Countrywide anytime soon! Oh wait, Countrywide was eaten by B of A, who is now (harumph) offering some relief to struggling homeowners facing foreclosure… of course, at the behest of you guessed it, their investors!

The Fair Debt Collection Practices Act lays out clear rules about what debt collectors can and can’t do and it allows you to sue if you believe your rights have been violated.

Here’s what you need to know if a debt collector calls you:

• Debt collectors can call only between 8 a.m. and 9 p.m. They can call you at work, but have to stop if you tell them your boss doesn’t approve.
• You can write to a collection agency to demand it stop calling you at home, too, but that won’t make a legitimate debt go away: A creditor could choose to note the debt on your credit report or seek a court judgment against you.

In writing: Within five days of contacting you by phone, the debt collector must send you a letter telling you the amount you owe, the name of the creditor you allegedly owe it to and instructions for disputing if you don’t believe the debt is yours. If you get a collection call, log the date on your calendar and start looking for that letter.

Taping: If you’re getting calls you believe are abusive, you might consider taping them. Most states, including Michigan, allow you to record phone calls as long as one party to the conversation (for example, you) knows the call is being recorded. A few states require everyone on the line to know. Check the rules before you tape.

Record-keeping: Getting one debt collection call could mean you’re in for others. That’s because debts may be resold over and over. Or if a consumer demands verification, the account may be bounced back to the original account holder, who ships it off to a new debt collector. To protect yourself, keep copies of letters, logs of calls, canceled checks or other documents relating to the account and plan to keep them for years.

Fighting back: If you suspect a debt collector isn’t playing fair, call Thompson Law Firm today at (480) 634-7480 to schedule an appointment. You may also want to complain to the Federal Trade Commission (1-877-382-4357) and .

You can also stop repeated or harassing calls by going to court. Our experienced law team specializes in consumer debt collection cases and can be reached at (480) 634-7480.

More information: The FTC’s free Fair Debt Collection fact sheet is available online (by clicking the link right here) or call 1-877-382-4357.

Calling No-Nos: Debt collectors are forbidden to:

• Harass you or people who know you.
• Talk to anyone except you (or the attorney that you designate) about the debt.
• Call people you know for any reason except to locate you.
• Physically or verbally threaten you.
• Swear at you or call you names.
• Call you repeatedly (or call you right back if you hang up on them).
• Imply they’re government employees or work with government agencies.
• Say they’re attorneys, if they’re not.
• Falsely imply you’ve committed a crime (debts are civil, not criminal).
• Misrepresent the amount you owe.
• Ignore your written denial of the debt. (They need to show you proof it’s yours or assure you the matter has been dropped.)

If you have questions about debt collection practices that are not covered here or on the Federal Trade Commission Web site, an debt relief counselor from Thompson Law Firm can help you. Call our office today: 480.634.7480 — if you need to file bankruptcy in Arizona, we offer a number of options for consumers. A Thompson Law Firm Phoenix Bankruptcy Attorney will be happy to assist you.

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(480) 634-7480 | christy@cmthompsonlaw.com