Bankruptcy is an effective way to eliminate your credit card debt. In Chapter 7 bankruptcy, your credit card debt can be wiped out. In Chapter 13 bankruptcy, you can pay off your debt through your repayment plan. However, because credit card debt is not considered priority in a Chapter 13 proceeding, you may not need to pay it back at all. Other unsecured debts, such as medical bills, may also be discharged through Chapter 7 bankruptcy.

If you are behind on mortgage payments, Chapter 13 bankruptcy may be able to stop a foreclosure and allow you to catch up on your missed payments. Likewise, if your car or other property is in danger of repossession, filing for Chapter 13 can stop collection efforts and provide a way to pay back your debt through your repayment plan.

If you are behind on making the required payments for your debts, you may be receiving phone calls from your creditors. In addition, creditors can take you to court to collect what you owe them. If they are successful, your wages can be garnished and liens can be placed on your assets. You can put a stop to harassing phone calls or any potential lawsuits by filing for bankruptcy. An automatic stay will be put into effect to at least temporarily stop any collection efforts.

The bankruptcy process can be complicated. You do not have to go it alone. Contact Phoenix bankruptcy attorney Nicholas Fuerst for more information regarding bankruptcy in Arizona. Call our Phoenix office at (480) 755-1930.