Contemplating bankruptcy is very emotional.

I meet with a lot of potential clients, and most of them are very leery of the idea of filing bankruptcy. For some, they can’t fathom not paying their bills since they’ve paid them on time their whole lives. (They just don’t know how to handle them now.) For others, they are stressed and worried that they will lose everything, including their house or car, or other property, if they file bankruptcy.

The truth of the matter is that if you file bankruptcy, you get to keep a lot of your things. For example, under Arizona law, you can keep your house even if it has up to $150,000 in equity. You can keep your car if it has less than $6,000 in equity (up to $12,000 in equity if you’re disabled). You get to keep various household goods not exceeding $6,000 (valued at their current used condition). And the list goes on.

Some people also think that if they file bankruptcy, they’ll never get credit again. The truth of the matter is that in today’s post-bankruptcy world, new credit offers are made after your bankruptcy is filed, and an individual can now qualify for a new mortgage in as early as 2-3 years following a bankruptcy discharge. I have numerous clients who thought they’d never get to buy another house (after having to surrender a house in bankruptcy that was upside-down) who have now purchased another house after filing bankruptcy. Each of them would have told you in the beginning that there’s no way they’d be able to do that. However, it happens over and over again.

Don’t let your emotions take over rationally deciding the best way to take care of your debts.  We offer free consultations to discuss your options.  If bankruptcy is not a good option, we will tell you that.  Contact us at (520) 743-2257 or email Kathy@kathyjohnsonlaw.com for more information.