Chapter 7 Bankruptcy Consumer Debt Protection in Arizona
Posted on behalf of Phillips Law Group on Nov 01, 2010 in Local
Anyone who is at all familiar with life in general in Arizona understands that the economy here is suffering at historic levels. With the combination of factors that include a high unemployment rate and a real estate market in the throes of its own drastic downturn, people are suffering for many different reasons. As a result of this suffering, those who find themselves mired in financial trouble are wondering how to proceed. Fortunately, there are options for those who would like to put an end to their constant stress, and this involves seeking the help of Phoenix, AZ bankruptcy lawyers to take a close look at the financial situations that merit analysis. Below is a look at one form of consumer protection that's available in Arizona - Chapter 7 bankruptcy protection.
Arizona Chapter 7 Bankruptcy - A Fresh Start
If someone chooses Chapter 7 bankruptcy to provide themselves with consumer protection, they will realize both immediate and long-term financial benefits. The immediate benefit that will be appreciated is that when the Bankruptcy Court receives a valid petition, it issues what's known as an Automatic Stay to all of the creditors listed on the documentation provided by the person filing the case. This Automatic Stay is basically an injunction that prevents creditors from continuing with their collection efforts, meaning that the incessant phone calls and threatening letters will stop.
In regards to long-term benefits, the person who files for this form of protection will be able to wipe the financial slate clean when the case is over by way of the Discharge that's issued by the court when the case is complete. A Discharge basically removes the existence of the debts that were in place before the case began, and the removal of these debts will allow a person not only to stop having to pay what he or she can on those debts, but it will put a stop to the falling credit score that can destroy a person's future.
If you are ready to make use of laws that provide you with the protection you need, contact the Phoenix bankruptcy attorneys at the Phillips Law Group today to schedule a free initial consultation.