Phoenix Arizona Bankruptcy Blog

When your debts have become overwhelming and bill collectors are calling, you may decide to file for bankruptcy protection. Understandably like many people in your shoes, you may have lots of questions about what will become of your property, like your vehicle, if you file.

There are different options available when it comes to your car and they depend on what route you take.

Vehicle Repossession and Chapter 7 Bankruptcy in Arizona

In a Chapter 7 bankruptcy, known as a liquidation bankruptcy, you can typically pursue one of three different avenues:

The recession has certainly not been kind to the commercial real estate market. When the economy fell, a number of builders, property developers and landlords found themselves burdened with unsustainable debt on distressed commercial real estate. As a result, many are now facing foreclosure. Fortunately, Chapter 11 bankruptcy can offer a source of relief.

What is Chapter 11 Bankruptcy?

Chapter 11 allows individuals, corporations and partnerships to reorganize their debts, assets and business affairs. In doing so, they may be able to avoid foreclosure.

However, debtors who qualify as "single asset real estate debtors" will be required to comply with special rules in order to successfully complete a Chapter 11 bankruptcy.

State Attorneys General have voiced disapproval of new legislation that would allow "informational" calls to be made to any cell phone as well as restrict the rights of states to limit or control those calls.

The bill would also allow collection calls to be made to cell phones, which is unsurprising, given the bill was supported by Association of Credit and Collection Professionals, the American Bankers Association, and Consumer Bankers Association, among others.

Showing his disapproval, Illinois Attorney General Madigan said that, "It would open up the floodgates to telemarketers and debt collectors to call at all hours of the day, and prevent my office and other state attorneys general from enforcing strong laws that have previously banned this practice of robo-calling."

She is joined by Attorneys General from Illinois, Connecticut, Iowa, Kentucky, North Carolina, North Dakota, Nevada, Oregon and Tennessee in opposing proposed legislation.

Credit card debt has become an epidemic in the U.S. According to the Federal Reserve, U.S. consumers carry $793.1 billion in revolving debt, 98 percent of which is credit card debt. According to creditcards.com, the average amount of debt per household is $15,799.

The amount of debt, unfortunately, is the result of not only amounts borrowed but huge interest rate fees. Luckily, some members of Congress have introduced legislation in hopes of helping consumers unable to pay down their credit card debt.

Details of the Bill

Introduced by Sen. Sheldon Whitehouse, a bill entitled the "Empowering States' Rights to Protect Consumers Act" was introduced this past November. The bill would allow states to limit the interest rates that credit card companies could charge their residents. The new law, if passed, would overturn a 1978 Supreme Court decision holding that the interest rates of nationally-chartered banks could take precedence over the various states' interest rate laws.

In 2010, foreclosures surpassed the one million mark and are on track to exceed that figure for 2011. However, mortgage defaults may soon be on the decline. Auriemma Consulting Group conducted an online survey of 509 adult credit card users in September 2011 and revealed that homeowners in Arizona and across the U.S. are reprioritizing their bills and putting home loan payments back on the top of the list.

Shift in Priorities

In 2009, consumers made credit card bills the top financial priority. Due to the downturn of the housing market that began in 2005, many people paid their mortgages (after credit cards and utilities) last, reasoning that it was foolish to throw money into an underwater mortgage.

According to today's data, however, seventy-seven percent of respondents said they pay their mortgages first, 52 percent said they pay utilities first and only 38 percent said they pay their credit card bills first.

Money troubles have always been one of the most common reasons couples divorce. This is even truer now that so many families have been devastated by the recent financial crisis.

An increasing number of Americans are finding themselves facing two major life changes in the fallout from the Great Recession - divorce and bankruptcy. Even if a couple was not considering bankruptcy before the divorce, the costs of maintaining two separate households may be enough to drive the separated spouses into dire financial straits.

If you or your ex is considering filing for bankruptcy after a divorce, there are some basic principles you need to consider.

Being in financial distress is stressful, particularly with the constant harassment in the form of letters and phone calls from debt collectors. The pressure seems to only get worse as soon as the debt is handed off to a third-party collection agency.

Fortunately, consumer protection laws exist to stipulate what collection agencies can and cannot do when it comes to collecting debts. Understanding these laws can empower consumers to protect their rights as they consider long-term solutions for their financial situations.

A new study by CredAbiliy, a nonprofit credit counseling agency, has revealed that families are still deeply affected by skyrocketing health care costs despite the implementation of the 2010 health care law passed to help families pay for the astonishing costs of health care. The study reveals that huge medical bills is the primary reason many individuals-including those in Arizona-are throwing in the towel and seeking the help of a bankruptcy attorney. CredAbility cites several reasons for the conclusion.