How Much Debt Do You Need to File Bankruptcy in Arizona?

How Much Debt Do You Need to File Bankruptcy in Arizona?

It can be confusing to figure out if you qualify for bankruptcy. If you’re not a lawyer, you probably have no idea what the rules are. Basically, if you owe a lot more than you can pay, bankruptcy may be an option for you. The only way to know for sure is to talk to an experienced Arizona bankruptcy lawyer as soon as possible. They’ll let you know if there are other options you can consider such as debt consolidation.

The Court Will Look at Your Debt-to-Income Ratio

While the trustee isn’t going to require you to owe a certain amount of money, there are certain criteria you need to meet. Most people who file for Chapter 7 bankruptcy have a debt-to-income ratio of about 3 to 1. This means that, after they’ve paid their normal monthly bills, they only have enough left over to pay about a third of their debt.

There’s a big difference between monthly bills and debts. For example, imagine that you bring home $2,000 per month after taxes. Your mortgage is $1,000. Your utilities are about $500. Your car payment and insurance are about $350 per month. This only leaves $150 for the month. If your monthly debt (like credit cards and loans) is more than $450 per month, you may qualify for bankruptcy. Let your Arizona bankruptcy lawyer review your papers and decide what’s best for you.

Your Arizona Bankruptcy Lawyer Will Know Whether You’ll Qualify

There’s a reason why people go to see Arizona bankruptcy lawyers. That’s because they don’t know how to handle it on their own. Why would you? Unless you’re a doctor you wouldn’t try to diagnose your own illness. So you shouldn’t expect to do your own legal work either. Sit down with a skilled Arizona bankruptcy lawyer. They can look through your paperwork and credit report. They’ll look at your disposable income and help you decide if this is the best (and only) option for your family.

You Don’t Want to File if You Don’t Have To

There’s nothing pleasant about filing bankruptcy. It can be painful. It can hurt your pride. Most people want to be able to pay their bills. But things happen. We’re living in unpredictable times. That means that unpredictable things happen. You’re better off talking to a seasoned Arizona bankruptcy lawyer as soon as you think about filing. You don’t want to rush into it. But you also don’t want to wait until too much damage has been done.

Call and Talk to an Experienced Arizona Bankruptcy Lawyer Today

If you feel like you’re overwhelmed when it comes to your bills, bankruptcy may seem like the answer. Some people look at bankruptcy as an easy way out. Any Arizona bankruptcy lawyer can tell you that isn’t true. Not only is it time consuming to file bankruptcy, but there’s no guarantee the court will approve it. You need to meet certain criteria to qualify for a Chapter 7 bankruptcy. You also need to consider the impact it will have on your credit.

Rather than try to answer all of these questions by yourself, just call our office. Schedule a consultation with one of our seasoned Arizona bankruptcy lawyers. They can take a look at your income and debts. They’ll give you an honest answer as to whether they think bankruptcy is your best option. You don’t want to make this kind of decision lightly. Talk to an expert before you make any definite moves.