Which Debts Burden You the Most?

As the holidays near, stress can come from multiple angles, including traveling for family commitments, hosting guests, shopping, cooking and cleaning requirements, getting your professional obligations out of the way before everyone starts leaving the office, and the most troubling factor of all: Money.

Whether you are already worried about how much the holidays are going to set you back, how you are going to pay your current debts, or both, it is crucial to consider which expenses burden you the most.

Knowing which types of bills are causing the most anxiety can help you determine how to make a fresh start before the new year gets here. Our Tucson bankruptcy attorney, Eric Ollason, can help you determine whether filing for Chapter 7 or Chapter 13 in Arizona is right for your financial circumstances.

Here is what to consider while examining your finances.

Are Your Burdened by Unsecured Debt?

If you are overwhelmed by unsecured financial obligations, like credit card debts, medical bills, payday loans, personal loans, and other debts that are not secured by collateral, Chapter 7 bankruptcy may be right for you.

When assessing your unsecured debt, and the potential for filing Chapter 7 bankruptcy in Arizona, it is crucial to take your income into account, as qualifying requires a means test that determines your eligibility. In short, this means if you are a high earner who has a significant amount of expendable income, you may not qualify.

Our dedicated Tucson bankruptcy lawyer can go over the means test with you to determine if you qualify for Chapter 7 bankruptcy, so you can start planning your financial future with confidence.

Are Your Burdened by Secured Debt?

When Arizona residents are overwhelmed by secured debt, like mortgages or vehicle loans, which are secured by property, the stress and anxiety of losing everything they own can be overwhelming. In these cases, our clients often have a combination of secured and unsecured debts that make it increasingly difficult to stay financially above water.

If this is true for you, Chapter 13 bankruptcy may allow you to reassess your debt under a new, financially manageable three- to five-year payment schedule. At the conclusion of your bankruptcy term, other outstanding financial obligations may be forgiven in good faith.

Contact Our Skilled Arizona Bankruptcy Attorney Today to Schedule a Free Assessment

If you are already being contacted by creditors, are afraid the bank is going to repossess your home or vehicle, or have questions about how filing for bankruptcy in Arizona can give you a fresh financial start, contact our experienced bankruptcy attorney in Pima County, Eric Ollason, to learn more about your legal rights and options by calling (520) 791-2707 to schedule a free consultation today.