Written by Canterbury Law Group

Debt’s Emotional and Mental Toll

Debt – it is a word that can quickly cause anxiety for many Americans. Credit card debt continues to rise, reaching up to $420 billion in 2018. The average household has almost $7,000 in balances carried over to the next month. Credit card debt comes with high-interest rates, which makes it even harder to pay off.

Debt plays a serious role in the a person’s emotional and mental well being. The more debt an individual accumulates, the more likely they’ll deal with stress and anxiety of having to pay it off. Too much debt can take over your life.

If debt becomes too overwhelming, bankruptcy tends to be the last option. There is bankruptcy help in Scottsdale, but that might add a whole new level of stress and anxiety. So, if you’re going through debt right now, consider how it is affecting you emotionally and mentally.

Anxiety and Depression

A study done by Dr. John Gathergood of the University of Nottingham found that those in debt were twice as likely to undergo mental health problems, anxiety and depression included. If this becomes an issue, feelings of worry and hopelessness could arise, making the situation that much more difficult to get a grasp on.

Embarrassment

Admitting that you’re in debt can be embarrassing for some, especially if they’re in so much debt that bankruptcy is a realistic option. In society, money tends to be linked to our success. If you have it, you must be successful in life. If you don’t have it, then you’re not as successful.

With this mentality, many struggling with debt will hide it and act like they are okay financially. The issue is that this could lead to even more debt. They may say yes to expenses that they shouldn’t be in their situation. Plus, they could be avoiding the much-needed help friends and family could offer.

Frustration and Anger

Debt is frustrating. For some, it can be so frustrating that it makes them angry, especially if the debt is out of their control. Anger may arise if the debt was a result of losing a job, an unexpected expense, identity theft, or a serious illness or accident. Frustration tends to come when the debt is from previous years that you wish you wouldn’t have done. Either way though, this mentality won’t help your situation.  You may need to seriously consider your bankruptcy options.

Fear

When you live in debt, fear tends to be a common emotion that many feel. It’s the fear of wondering if you’ll be able to make your payments, pay for your mortgage or rent, put food on the table, ensure there is hot water and electricity in your home, or falling into bankruptcy.

Debt brings up many worries and the deeper in you go, the more the fear becomes apparent. Other fears can arise like the fear of wondering what you’ll do next, how you’ll get out of it, what people will think of you, and if you’ll be able to survive your debt.

If you’re struggling with debt, it’s essential that you watch how it is affecting your emotional and mental well being. The stress of debt can quickly take over your life. However, if you can avoid that from happening, you’ll be able to tackle your debt with a clear mind.  Bankruptcy can often clear the decks of almost all debt and give you a fresh start in life, and with your life’s well being.

Written by Canterbury Law Group

Removing the Bankruptcy Stigmas

When you’re talking about bankruptcy, it can be a scary conversation. Unfortunately, there is still a negative stigma around filing for bankruptcy, even if it the best solution for those considering this solution.

The bankruptcy stigma comes in a variety of themes. You may be worried about how your friends and family will react when they hear you talk about bankruptcy. It can also be challenging to get a credit card, or even get one at all, which can give you an unsettling feeling.

If the stigma is what is holding you back from claiming bankruptcy and you know it is the best decision for you, disregard these issues. Remember that thousands of people have gone through the same thing and they come out on top after it all.  As mom and dad said, “this too, shall end.”

Social Bankruptcy Stigmas

One of the hardest stigmas to overcome with bankruptcy is the concern of what people will think of you. Chances are there are people you know that have gone through the same situation you are in right now. Although bankruptcy cases are a “public” courthouse matter, typically people do not go out searching to see who filed for bankruptcy. Plus, you can keep it as private as you want.  Don’t ask, don’t tell—virtually nobody will even know you went through this cleansing and liberating process.

Emotional Stigma

If you find yourself feeling guilty for filing for bankruptcy, again, it is more than okay. The federal government offers bankruptcy for a reason—people deserve a second chance.  Big time.  Lots of the time, people who claim bankruptcy had no other choice and did everything they could. Many factors are outside of your control contribute, including the local and national economy. So, if you have guilt for not paying your bills as you should be, that doesn’t make you any less responsible.  You have done your best, you will do your best again.

Financial Stigma

The social and emotional stigma with bankruptcy is something that you can and will keep private, or seek counseling to help you through. Unfortunately, the financial stigma around bankruptcy is one that need not be inevitable. When you claim bankruptcy, your credit score goes down for only a short time—it will skyrocket later. It will be initially more difficult to get credit for things like a home or car loan. The good news, though, is that you can work your way back to a high credit score and remove the stigma altogether.  Most post-discharge consumers find themselves normalized on credit and their lives within a few years.

It’s the Best Option

In the end, it’s important to remember the benefits of claiming bankruptcy in your situation over the stigmas around it. Bankruptcy came to be as a safety net for those who need help getting back to a level of life they can survive in.

If you are thinking about bankruptcy, speak with the top bankruptcy attorney in Scottsdale to help you through the process.

Written by Canterbury Law Group

Tips on Filing for Bankruptcy

Many people opt to file for bankruptcy when their income isn’t sufficient to repay creditors. Certain types of bankruptcy filings can lead to elimination of at least some or all debt and a halt for collection calls. While bankruptcy can be devastating emotionally, it does have many benefits. If you are planning on applying for bankruptcy, here are several useful tips to know about:

Learn About the Different Types of Bankruptcy

There are several different types of bankruptcy. The two main types many people know about are Chapter 7 and Chapter 13. Chapter 7 eliminates virtually all debt, especially from unsecured loans. Chapter 13 is used to come up with a court-approved plan to partially repay all debt in 3 to 5 years. You will have to learn about what each type entails and which type of bankruptcy is best suited for you. Before you file your case, you will have to learn about the law a bit first.

Hire a Lawyer

It’s virtually impossible to file for bankruptcy without a lawyer. The body of law in this area is muddled and complicated so you will really need an experienced attorney. Hire a lawyer from the county you live in, for example a bankruptcy attorney in Scottsdale. It’s best to consult with an attorney before you decide to proceed with a court filing. Your attorney will tell you how to fill out the legal documents and what evidence to present in court. Attorneys are necessary because, in some cases, creditors have the right to sue you back. A lawyer may be able to intervene and reduce the risk of this.

Understand Your State Laws

Bankruptcy law differs from state to state. How many of your assets you can keep, or how much debt will be discharged will depend on the law in your state. Therefore, it’s very important that you understand the rules and guidelines set forth in the state of your residence. You can get expert help too. For example, you can ask a local bankruptcy lawyer in Scottsdale for state laws in Arizona.

Bankruptcy Does Not Get Everyone off the Hook for Debt

Filing for bankruptcy often removes the obligation of a single debtor to a creditor. This does not apply to others responsible for the same debt, such as the other joint account holder or a co-signer. If there’s credit card debt, then all the people formally responsible for that account will have to pay. When you file for bankruptcy, the other person could end up being solely responsible for the debt. You may want to think in advance to avoid this scenario. Ask your lawyer for the best course of action.

Inform All the Creditors

You will have to inform all your creditors that you are filing for bankruptcy, not just the creditors responsible for the overwhelming debts. In some states, it’s required by law. When you are in the process for filing for bankruptcy, you must inform all debt collection callers of the situation and provide the name of the attorney handling the case so the calls can stop.

Bankruptcy need not be expensive and emotionally draining. Follow the above tips to make it less so.

Written by Canterbury Law Group

3 Steps to Take Before Filing For Scottsdale Bankruptcy

At Canterbury Law Group, our Scottsdale bankruptcy attorneys are top industry experts. We represent clients through the entire bankruptcy process and, although all cases are unique, the end goal of bankruptcy is always a fresh financial start.

Here are three tips for people that are starting to think about bankruptcy.

  • Gather documents. You must start collecting financial documents for your attorney. Obtain a record of debt including credit card bills, unpaid medical bills, loan statements, etc. Also locate any documentation on assets you currently hold and monthly income statements.
  • Find a qualified legal team. Filing for bankruptcy is a complicated process and a simple mistake can be detrimental to your case. Make sure you have a legal team that is experienced, understands your goals and can get the job done. Many law firms offer a complimentary first-time consultation or cut-rate deals. Generally speaking, uou get what you pay for. Instead, call Canterbury Law Group today to schedule your appointment.
  • Better your financial habits. You need to make sure you improve your financial life after your file bankruptcy. Educate yourself by reading books, reviewing financial websites and seeking out professional guidance. Obtain a secured credit card or personal loan to start building up your credit but remember that you may have to wait some time before you can be approved for a secured credit card.

As authorities in the legal industry, the bankruptcy counsel at Canterbury Law Group was uniquely formed to provide no-nonsense legal counsel for personal and business bankruptcy cases. The team’s attention, experience and sophistication allows for innovative resolutions that generate positive client results.

Put time on your side and consult on your possible bankruptcy sooner than later. Our legal team is ready to represent you in your Scottsdale business bankruptcy case. Call us today to schedule your initial consultation. 480-240-0040.

Written by Canterbury Law Group

Filing Chapter 7 Bankruptcy in Scottsdale

Chapter 7 bankruptcy is one of the most common types of bankruptcy. Filing bankruptcy in Scottsdale can be a very intricate and overwhelming process, so the dedicated law team at Canterbury Law strives to help clients every step of the way.

A Chapter 7 bankruptcy filing provides immediate relief for those who are struggling with unsecured debt such as medical bills, credit card debt and certain tax debt. It is a valid means of resetting your financial life and getting back on track with your finances. Chapter 7 provides individuals with a discharge of all debts that are “dischargeable” under the Bankruptcy Code. Notably, some debt, like child support obligations and student loans are, for the most part, non-dischargeable.

It is wise to work with experienced legal counsel when trying to negotiate the complex process of filing for Chapter 7. The law team at Canterbury Law in Scottsdale has experience with the most intricate bankruptcy cases.

Stopping Collections Actions – After filing for Chapter 7, all collections activities from creditors will go through an automatic stay, or stop. Approximately four months after your filing, you will receive a Chapter 7 discharge, which will release you from personal liability on most debts and prevent creditors from contacting you regarding these discharged debts.

Qualifying for Chapter 7 Protection – A means test is needed to qualify for Scottsdale Chapter 7 bankruptcy protection. If your current monthly income is below the adjusted median income in Arizona, you automatically pass the test. If you do not meet these initial requirements, you must pass a secondary means test that deducts expenses to determine if you qualify.

It is important to have an experienced Scottsdale bankruptcy lawyer to help guide you through this filing bankruptcy. The bankruptcy lawyers at Canterbury Law will counsel you to help settle your debt and start fresh with your finances.