How Filing for Bankruptcy in Arizona Will Affect Your Credit
Posted on behalf of Phillips Law Group on Aug 20, 2010 in Local
More people in Arizona find themselves in serious financial now than ever before. With the job market suffering, the real estate market going through one of the worst periods in history and many other factors working against the people of Arizona, many people simply don't know how to get out from under the crushing stress that financial problems involves. Fortunately, there are options, and one of them is filing for bankruptcy protection. While seeking this protection with the help of an Phoenix bankruptcy lawyer will help you obtain a fresh start, many people hesitate to take this step because they're concerned it will harm their credit. Below is a closer look at this issue.
Arizona Bankruptcy 'Re-Sets' Your Credit
One of the realities of almost anyone who is looking into bankruptcy is that their credit rating is most likely already suffering. Bankruptcy generally does not become an option until someone falls behind in their bills or because there is no way they'll be able to keep up with their bills after their income suffers. As a result, those who find themselves in this situation will likely experience a continued downturn in their credit rating for the foreseeable future.
However, filing for bankruptcy protection places a light at the end of this plummeting credit rating tunnel. While filing for bankruptcy could lower a credit rating after the case is received and recorded, completion of the case will eventually wipe out those bad debts that were already killing someone's credit. Generally, negative entries on someone's credit report will remain in place for seven years, and a bankruptcy filing will remain for 10 years. However, most people will not be able to eliminate those debts within three years anyway, so it makes more sense to guarantee an opportunity to rebuild a credit rating.
Seek an Arizona Bankruptcy Lawyer for a Fresh Start
Overall, filing for bankruptcy does not have to be a decision that involves shame, embarrassment or feelings of failure. Instead, the peace of mind that comes with having the collection calls end, the elimination of the collection letters and the constant stress that comes with the realization that bills cannot be paid is invaluable for someone's enjoyment of life overall. If you find yourself in this situation, contact the Phoenix bankruptcy lawyers at the Phillips Law Group today so you can plot a course to financial peace and freedom.