by Max Gunderson.

One of the primary goals of an individual filing for a bankruptcy case in Phoenix, Arizona or Tucson, AZ is to obtain relief from all of the burdensome debt. The relief provided by filing for a Chapter 7 or Chapter 13 bankruptcy is attained through the bankruptcy discharge, the purpose of which is to provide a “fresh start” to the honest debtor.

A “discharge” in the bankruptcy world means that you are now legally free from paying certain debts.  This means that the creditors will no longer have a right to collect the money that was once owed to them.  This is not a temporary but a permanent order prohibiting your creditors from taking any additional action to collect on the debts that you once owed them.  They creditors can no longer: call you, send threatening letters, or badger you in any way as you have no further debt obligation to them.

When you get your bankruptcy discharge depends on which chapter of bankruptcy you are filing. When filing Chapter 7 bankruptcy in Phoenix Arizona or Tucson, AZ, a bankruptcy discharge occurs relatively early. In an Arizona Chapter 13 bankruptcy filing it may not.  In a Chapter 7 you will normally receive the discharge within a few months after your petition is filed.  This is different from a Chapter 13 bankruptcy because the discharge in a Chapter 13 bankruptcy doesn’t typically occur until you are finished with your payments that you are obligated to make under your Chapter 13 bankruptcy repayment plan. Your Chapter 13 repayment plan in Phoenix Arizona or Tucson, AZ, is a 3 to 5 year process.  Once you have completed your payments, then you will receive your bankruptcy “discharge”.

If you have any questions about what a bankruptcy discharge is or if you have been bothered by any creditors after you have received your bankruptcy discharge, you should contact a Phoenix, Tucson, Arizona bankruptcy lawyer for assistance.  At The Bornmann Law Group, PLLC, we want to help you with your bankruptcy needs, be it Chapter 13 Bankruptcy Questions, Chapter 7 Bankruptcy Questions, or questions regarding your bankruptcy discharge. To receive further assistance, just complete our free bankruptcy case evaluation form or call (480) 263-1699 in Phoenix, Arizona or (520) 306-8729 in Tucson, AZ.

If you are considering declaring bankruptcy in Phoenix, remember two things: 1. it’s true that filing for bankruptcy is nothing to enter into lightly. 2. Filing for bankruptcy may not fix all of your financial problems.  Filing for Chapter 7 or Chapter 13 bankruptcy in Phoenix, Arizona is often merely a step in the right direction to your financial freedom.

Every individual has their own unique financial situation.  An affordable Phoenix Arizona bankruptcy law firm can help you figure out which type of bankruptcy is most suited for your particular financial situation.  For many Arizona bankruptcy attorneys, bankruptcy has become a cut throat business as many bankruptcy law firms are offering: free debt evaluations, free bankruptcy-by-phone, and almost all offer a free initial consultation.  Take advantage of the competition among law firms for your business.  Contact a Phoenix Arizona bankruptcy lawyer, set up a free initial consultation and get some of your questions answered.

There are some financial problems that filing for bankruptcy cannot fix. Filing for Chapter 7 or Chapter 13 bankruptcy protection won’t fix any underlying financial strains that could have contributed to you declaring bankruptcy in the first place. For example, if you don’t have enough income to cover your regular expenses, declaring bankruptcy won’t help you bring in the necessary additional income. Let an experienced Phoenix Arizona bankruptcy lawyer evaluate your situation and decide if the financial problems that you are facing are something that can be cured through bankruptcy.

Yes, filing for bankruptcy is a definite black mark on your credit.  However, it is important to remember that debt is a black mark in and of itself. Filing a Chapter 7 or Chapter 13 bankruptcy in Phoenix, Arizona, in many cases, may actually improve your current credit situation. If nothing else, through a Phoenix, Arizona bankruptcy, the aforementioned black mark will go away eventually. Whereas if you do not take steps to fix your debt now, you will be in trouble long into the future.

If you, after you have met with a bankruptcy attorney in Phoenix, AZ, do decide to file for bankruptcy protection in Arizona, make sure that you stop using your credit cards, be up front and honest about your finances, don’t play around with your money or credit. You’ll want to do as little spending as possible while you go through the process of filing for bankruptcy.  Don’t try to hide your money. If you try to hide money, or transfer it somewhere, put assets into another person’s name, etc… you may find yourself in legal troubles.  It’s always best to be honest.  Is money really worth more fines or jail time to you?

Many people are looking for an answer to their financial woes in Phoenix.  Consider seeking help from a financial attorney or bankruptcy attorney in Phoenix, AZ.  There are ample bankruptcy lawyers in Phoenix who offer a Free Debt Evaluation.  Take advantage of the words of wisdom from one of these professionals.  The initial consultation and the advice is free.  Find out what is the best option for you and your family.  Help is just a phone call away. Contact the Bornmann Law Group, PLLC, set up a free consultation and debt evaluation today.  Things are tough out there.  Get some help today!

by Max Gunderson

Are you unhappy with your current job?  Maybe you should take a closer look at the job market in Phoenix, AZ then be thankful that you are one of the lucky people with a job in Arizona and aren’t out there looking for work in a poor economy.

The unemployment rate in the United States held at 9.6 percent in September 2010.  The jobless rate has now been greater than 9.5 percent for 14 straight months.  The last time the US had such a sustained run of that high of unemployment was during “The Great Depression” in the 1930s.  Things are a lot worse out there than it may seem, think about that the next time you are complaining about your job.

Does it seem like it has been a long time since you got a raise in your pay at work?  Please realize before you gripe about it, that one out of every 10 people in the US don’t even have a job.  Also, be aware that the anemic job growth and high unemployment rate in Phoenix Arizona and throughout the US are holding down wages.  The average hourly earnings rose by only a penny in September 2010 from August 2010. For the year the average hourly earnings have only increased a dismal 1.7 percent.  Fact of the matter is most people who have a job aren’t getting a raise.  The ones that are getting an increase in work compensation are only getting a very small increase.

Times are tough for both people with jobs and the unfortunate who aren’t currently employed.  Whether you are employed, unemployed, if you are in the group who dislikes their job or a member of the “I need a raise”… times are tough.  Most every indication is that things aren’t going to get better any time soon.

Many people are looking for an answer to their financial woes in Phoenix.  Consider seeking help from a financial attorney or bankruptcy attorney in Phoenix, AZ.  There are ample bankruptcy lawyers in Phoenix who offer a Free Debt Evaluation.  Take advantage of the words of wisdom from one of these professionals.  The initial consultation and the advice is free.  Find out what is the best option for you and your family.  Help is just a phone call away. Contact the Bornmann Law Group, PLLC, set up a free consultation and debt evaluation today.  Things are tough out there.  Get some help today!

by Max Gunderson

Many people in Tucson, Arizona are facing foreclosure.  Foreclosure rates in Arizona are at an all-time high.  Take preventative measures now, make changes to your financial life, and don’t become one of the growing number.

Are you having problems paying your current bills and obligations?  Are you falling behind on obligations like your credit card bills, utilities, and car payments?  If you find yourself in an ever-worsening financial situation, can foreclosure be far behind?  There are steps that you can take in order to protect you and your family against having to face foreclosure.

There are things that you can do to help you prevent a foreclosure, however, you need to answer some hard questions and be honest with yourself. 

Ask yourself these questions:

• Is your house larger than what you currently need?
• Are you currently falling behind on your bills?
• Are you in an adjustable rate mortgage?
• Is your house payment going to change soon?

Undoubtedly, with the current hard economic times in Tucson, AZ, many foreclosures will be inevitable.  Take action now to help prevent a foreclosure down the road.  The worst thing that you can do is to do nothing. It’s important to face a possible foreclosure head on. Make any available financial sacrifices, trim your spending, and tighten your budget. Prepare today for tomorrow and remember to keep an open line of communication with your current lender.  Communication and preparation are keys to your financial success.

If you are past the point of avoiding a foreclosure and find yourself with no other choice, you should seek the help of a financial or bankruptcy attorney in Tucson, AZ to find out what other options may be available to you.  Many Tucson area attorneys offer a FREE Debt Evaluation and FREE Initial Consultation.  Take advantage of the free advice from a professional and get informed as to what the best option may be for your individual financial situation.

If you are currently facing a foreclosure in Phoenix or Tucson, AZ, get some help!  The Bornmann Law Group has helped several people in Tucson Arizona with their foreclosures.  A qualified Tucson Arizona bankruptcy law firm like The Bornmann Law Group has the answers that you need to your financial woes.  Contact the professional attorneys  at The Bornmann Law Group today to assure that a foreclosure doesn’t effect your financial well being.

by Max Gunderson

People at high risk for bankruptcy generally demonstrate several or all of the following patterns:

10 Signs Bankruptcy may be rapidly approaching:

1.  You are having your wages garnished.

2.  You have had your utilities shut off at some point during the past year.

3.  For each month during the past 6 months, at least one of your bills has been paid late.

4.  You have no savings.

5.  You are using a cash advance from one credit card to make payment on a second account.

6.  Your car or vehicle has been or is close to being repossessed.

7.  You have developed a reliance on credit cards to pay for groceries and other major necessities because you don’t have cash.

8.  Your landlord or mortgagor has initiated eviction or real estate foreclosure.

9.  You have been denied a request for additional credit.

10.  Creditors are harassing you non-stop about unpaid bills. They call, they send threatening letter, they won’t leave you alone.

If you said yes to some of the items above it may be time to consider filing for bankruptcy. If some of these Bankruptcy Danger Signs pertain to you, please contact an experienced bankruptcy lawyer in Arizona and find out if filing for bankruptcy might be the best option for you.

If you are asking yourself, “Should I file for bankruptcy?” You can either visit one of our Tucson and Phoenix area offices for your FREE consultation or set up a FREE Phone Consultation with one of our helpful bankruptcy lawyers.  Schedule you free consultation today by calling (480) 263-1699 or (520) 306-8729 or by filling out our online form.

by Max Gunderson

The new Bankruptcy Law of 2005 changed many of the Arizona bankruptcy laws.  One of the most significant provisions of the new bankruptcy law of 2005 is the introduction of a “means test.” So what is the means test? The means test is used to determine whether or not a person is eligible to file for a Chapter 7 bankruptcy. Under the new bankruptcy law, as of October 17, 2005, bankruptcy applicants who wish to file for Chapter 7 bankruptcy protection must meet certain eligibility requirements under a designed ”means test.” Once you decide that you are going to file for bankruptcy, you must take the means test and submit the results of the means test to the Bankruptcy Court.

One of the things that the new bankruptcy law passed in 2005 was designed to do was to prevent people with higher incomes from filing for Chapter 7 bankruptcy.  The “means test” checks your income in order to determine your eligibility to file for bankruptcy.  If your income is below the average for your state, you are then eligible to file for Chapter 7 bankruptcy. If your income is above the median for your particular state, you will not be allowed to file Chapter 7 except under very special circumstances.

If you are considering filing bankruptcy and your income is above the state average, the calculations for the means test become more complex.  The means test evaluates what you have for disposable income (the amount of money you have left over after paying your expenses).  If your disposable income is too high, the Bankruptcy Court may decide that you can pay off at least some of your debts; this means that you will have to file a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy.

No matter what the means test reveals, it is a good idea to hire a lawyer to help you with your bankruptcy.  Even if through the means test you qualify for filing a Chapter 7 bankruptcy, it may not be in your best interests to do so.  An experienced Phoenix, Tucson, Arizona bankruptcy attorney can help you make the right decision when filing for bankruptcy protection.  It is always a great idea to hire a bankruptcy lawyer if you plan on filing bankruptcy.  A Phoenix and Tucson, Arizona bankruptcy lawyer will make sure the entire bankruptcy process is a successful one for you. Contact a qualified bankruptcy lawyer.

by Max Gunderson

While it may be fair to say that many people in Arizona don’t even know their credit score, they really should pay attention to their credit score as it impacts every major financial decision you make.  This fact puts to rest the saying “What you don’t know can’t hurt you.”  Not knowing your credit score or letting your credit score slip can make your financial life quite complicated.

Credit scores throughout Arizona and in all of America are at an all time low point.  Almost 26 percent of consumers, (almost 44 million people), have a credit score below 599. Historically, only about 15 percent of consumers with active credit had a score below 599 in the FICO range of 350-800. (FICO stands for Fair, Isaac and Company, the company that historically assigned credit ratings.)  Generally speaking, a FICO score of 700 or higher is what you’re aiming for. A credit score of greater than 700 typically shows a responsible bill paying history and is usually indicative of a healthy financial situation.

Not paying attention to your credit score can even spoil your chances of getting a credit card in Arizona. If you’re looking to get a new credit card in Arizona, the best thing you can do to increase your chances is to pull your credit report, review it for accuracy, and analyze the data to make sure you’re in the best possible financial situation and that there aren’t any inaccuracies on your credit report.

Credit card companies look at your credit score to make their ultimate decision on whether you get a card. The increasing legal constraints on the lending industry combined with a surge in consumers with money woes, many credit card companies no longer offer credit to low-score applicants. You may be denied a credit card based on your score. If you pay close attention to your credit and take the necessary steps to assure that your credit report is accurate, your chances of being approved for a new credit card will substantially increase.

If you find yourself in a difficult financial situation or if your credit score has slipped and you are in the 26% of Americans with a credit score below 599.  You should consider contacting a Phoenix Bankruptcy Attorney and getting a FREE debt evaluation to see what is the best move for you in your current financial situation.  There are many options available to you.  Ask a professional for help, many offer FREE Consultations.

By Max Gunderson

What is a “Joint Petition” for Bankruptcy? A joint petition in bankruptcy is the filing of one single bankruptcy petition by an individual and his or her spouse.  In Arizona, an individual will only be able to file a joint petition if they are legally married on the date that they file their Chapter 13 or Chapter 7 bankruptcy case.  A benefit of a “joint petition” is that the couple will only have to pay only one filing fee, not two.

Unmarried individuals, corporations, and partnerships are not able to file joint petitions while filing for bankruptcy protection in Arizona. In addition, although married couples may file a joint petition, they are not required to do so.

The purpose of filing for bankruptcy in Phoenix and Tucson, Arizona is assist an individual or couple who are in financial distress. Filing for Chapter 7 or Chapter 13 bankruptcy should improve their living conditions and help them obtain a fresh start financially. The bankruptcy court achieves this by discharging the obligation to all or a portion of the debt–not by discharging the debt itself. If the bankruptcy court absolves one account holder of his responsibility to repay a creditor, the full legal responsibility for repayment falls to his joint account holder. If the court discharges the debt and no joint account holder exists, the creditor cannot pursue anyone for repayment.

Sometime it is beneficial to file a “Joint petition” if you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Tucson, Phoenix, Arizona. If the debts you owe are also owed by your spouse, or co-signed by your spouse, it would be beneficial to file bankruptcy together as a married couple. If most of the debts are in your name only, you may consider filing a bankruptcy as the sole debtor.

If you are married or considering getting married and may be considering filing for bankruptcy in Phoenix, Tucson, Arizona, you should contact a bankruptcy lawyer and find out if you should file a sole bankruptcy petition or a joint bankruptcy petition.

If you have any questions about what a bankruptcy “joint petition” is or if you are considering filing bankruptcy, you should contact a Phoenix, Tucson, Arizona bankruptcy lawyer for assistance.  At the Bornmann Law Group, PLLC, we want to help you with your bankruptcy needs, be it Chapter 13 Bankruptcy Questions, Chapter 7 Bankruptcy Questions, or questions regarding your bankruptcy discharge. To receive further assistance, just complete our free bankruptcy case evaluation form or call (480) 263-1699 or (520) 306-8729.

by Max Gunderson

Once your vehicle has been repossessed, the collateral (your vehicle) is taken to a storage lot or auction house, where it’s stored for a period of time. The repossessed collateral must be sold in a commercially reasonable manner. You will be given reasonable notice of the date, time, and place of the sale. If you do not redeem the collateral by paying the full amount of the debt, plus all expenses of the repossession, the collateral will be sold by auction. The proceeds from the auction will be used to adjust your the amount that you still owe on the vehicle.

Just because you no longer have your vehicle and it has been sold at an auction does not mean that you are out of the woods. You still owe the difference between what you owed on the loan, and what the collateral (your vehicle) was auctioned for. Inevitably, your creditor will come after you for the unpaid balance as they will probably file a civil lawsuit against you and get a judgment against you for the unpaid balance. This unpaid balance is known as the deficiency on your loan. If you find yourself facing a judgment for a repossessed vehicle or if the court has found you to be responsible for a deficiency on your vehicle, you should contact a Phoenix or Tucson Arizona Bankruptcy Attorney and get help with your vehicle repossession.

If you are in a bind and find yourself falling behind on your vehicle payments, you may want to contact your creditor and see if you are able to make arrangements with them regarding payments on your vehicle.  In Arizona, it’s easier to try to prevent vehicle repossession from taking place than to dispute it afterward. You should contact your Arizona creditor when you realize you will be late with a payment. There are many creditors that will work with you if they believe you will be able to pay soon or even if slightly late.  Another possibility is that sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you do happen to reach an agreement with your creditor to modify your original contract, make sure to get it in writing to avoid questions later.

It is also important to remember that it is possible that your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the vehicle. By voluntarily agreeing to a repossession, you may reduce your creditor or lessor’s expenses, which you would be responsible for paying if your vehicle ends up being repossessed.  Remember that even if you return the car voluntarily, you are responsible for paying any deficiency on your credit or lease contract, and your creditor may still leave a black mark on your credit rating by entering the late payments and/or repossession on your credit report.

If you have questions about the implications of Filing Bankruptcy in Arizona and repossession of your vehicle please contact the Arizona Bankruptcy Lawyers at:  The Bornmann Law Group, PLLC (480) 263-1699 or (520) 306-8729 for a free initial consultation to discuss your legal options in avoiding repossession and filing Bankruptcy in Arizona. With locations in Phoenix, Chandler, Tucson, and Flagstaff we are an Arizona Debt Relief Agency and help people file for Bankruptcy under the Bankruptcy Code.  Don’t lose everything. Get a “Fresh Start” today.

by Max Gunderson

Getting a new car, truck, boat, or recreational vehicle is fun.  There is an excitement that you feel as you have a new “toy” to play with.  However, you need to remember when you decide to finance or lease a car, truck, or other vehicle that your creditor or lessor holds important rights on the vehicle until you’ve made the last loan payment or fully paid off your leasing obligation. These creditor rights are established by the contract that you signed when financing the vehicle and through Arizona state law.

It is very important that you make all of your payments and follow the lending agreement to the letter. If you don’t, there could be consequences, for example, if your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. In Arizona, creditors can do this legally without getting a court order or giving you any advanced warning.  According to Arizona law, if you are in default of your lending agreement, your creditor can come and repossess your vehicle as long as they do not breach the peace – breaking in or taking it by force.

What exactly constitutes a “breach of the peace” depends on the facts of each case.  In addition, your creditor may be able to sell your contract to a third party, called an assignee.  The Arizona assignee may have the same rights and responsibilities as the original creditor or lessor.  When repossessing your vehicle, your Arizona creditor can use self help or they can have a recovery agent do it for them.

If you have questions about the implications of Filing Bankruptcy in Arizona and repossession of your vehicle please contact the Arizona Bankruptcy Lawyers at:  The Bornmann Law Group, PLLC (480) 263-1699 or (520) 306-8729 for a free initial consultation to discuss your legal options in avoiding repossession and filing Bankruptcy in Arizona. With locations in Phoenix, Chandler, Tucson, and Flagstaff we are an Arizona Debt Relief Agency and help people file for Bankruptcy under the Bankruptcy Code.  Don’t lose everything. Get a “Fresh Start” today.