First off, we are not saying bankruptcy is always the best choice or that Arizona is always the best place to file bankruptcy. After all, bankruptcy is primarily controlled by federal law with certain exemption amounts and other issues being state specific.
Since Arizona is where we practice, we thought we’d outline why it may be a good idea to file bankruptcy in Arizona this year.
Reason 1: Time is Money
Dealing with debt is not something most people enjoy. It can be one of the most challenging times in your life and, frankly, something you want to avoid dealing with. Many people find themselves putting off the issue and procrastinating. Of course, there is always the hope that things will somehow workout or improve.
But it’s important to understand that time is often not on your side. You only have so many working years ahead of you and so much time to accomplish the things you want to accomplish in life. Delaying an inevitable bankruptcy will only make things worse. Like ripping off a band-aid, filing bankruptcy now can help you clear the way to future success.
Also, every day that goes by that you are servicing bad debt and/or not saving for retirement or other important things in life can be wasted time. As Warren Buffet has said repeatedly, compound interest in a wonderful thing. But in order to take advantage of compound interest, you have to be saving and investing. You can’t do that if you’re constantly teetering on the verge of bankruptcy. So if this describes your situation, consider meeting with a bankruptcy attorney before any more time is lost.
Reason 2: Bankruptcy Can Take Time
Depending on your finances, you may end up filing Chapter 7 bankruptcy or a Chapter 13 or 11 bankruptcy. If it’s 13 or 11, those can take time, 3-5 years or longer. If you file Chapter 7, the process can be much quicker. So if you are procrastinating and delaying what is likely an inevitable bankruptcy, just remember that at any given point, you could be 3-5 years away from being through it.
Reason 3: Debt Settlement is not a Viable Option for You
We talk a lot about debt settlement options on this site. That’s because for many people, settling their debt without bankruptcy is a viable option. But you don’t know until you speak with a debt attorney and have your specific situation evaluated.
In some cases, debt settlement may not make sense for you. This can be especially true if you have a lot of debt and little income/assets to use to attack it. Conversely, if you have way too much income/assets, it can make debt settlement difficult. In other words, how collectable are you? If you can’t pay your debt, and an attorney determines that settling your debt won’t work, then bankruptcy may be your only viable option.