Breaking News: Eggs Are Still Expensive

When the cost of living goes up, restaurant dining is one of the first discretionary expenses eliminated from many people’s budgets. But when groceries skyrocket in price as well, it feels like there are few places left to turn. Recently, the price of eggs seems to be the barometer of the price of groceries as a whole. Many United States citizens used the price of eggs as their reasoning for voting for President Trump. At only a few weeks into his presidency, Trump has already issued sweeping executive orders that will vastly change the landscape of our country for generations. But in February 2025, egg prices hit a record high, increasing the cost of several recipes and making a staple protein less accessible for the masses. The average price for a dozen Grade A eggs hit $4.95 nationwide, but that amount is even higher in Arizona at $6.03 per dozen. The increase is due to another outbreak of avian flu, but my bank account doesn’t care if a bunch of chickens have the flu. When the cost of just about everything but fast fashion and consumer electronics increases at an out-of-control pace, everyday Americans struggle to keep up. If inflation has stretched your budget from a comfortable standard to paycheck-to-paycheck, or even falling behind, you could be on the precipice of accruing major debt. Bankruptcy is a debt relief option that provides comprehensive protections and clears a wide variety of debts. Schedule your free consultation with one of our experienced Arizona bankruptcy lawyers  today at 480-405-1010. 

Bankruptcy Now Or Later

Filing for bankruptcy in Arizona might not be the answer to your financial problems if you are simply struggling to break even due to inflation. Bankruptcy won’t reduce your rent, groceries, gas, etc. But if a significant portion of your monthly budget goes towards paying off debts, interest, and late fees, bankruptcy will clear those debts so you can use your finances to get ahead rather than just get by. Another reason to file for bankruptcy despite not having significant debts is to activate the automatic stay. The automatic stay becomes effective upon filing for bankruptcy, and typically remains effective until the case is discharged. Protections can lapse if the case is dismissed or a creditor requests to proceed with collection anyway. Some of the actions that the automatic stay can stop include:

• Lawsuits
• Wage garnishments
• Utility shut-offs
• Bank account levies
• Home foreclosures
• Evictions (not in the possession stage)
• Vehicle repossessions

Some of these actions require notice in advance and others can sneak up on you with little warning. In bankruptcy, debt is only discharged up to the date of your filing, so it can be beneficial to wait to file as long as possible to maximize how much debt is discharged. But if you are facing a creditor collection effort like a lawsuit or foreclosure, the benefits from the automatic stay may make it worthwhile to file immediately. If you are in this type of situation and need to file quickly, there are emergency filing procedures so you can activate the automatic stay now and build the rest of your petition later. Also called a skeleton filing, our firm can typically execute these types of filings in just a few hours. If you need bankruptcy protection as soon as possible in the Phoenix or Tucson area, contact our firm for your free consultation at 480-405-1010. 

Considering Alternatives To Bankruptcy

Bankruptcy’s primary purpose is to clear debt, which you might not have much of if your issues primarily arise from the cost of living. If you have a few thousand dollars or less in debt, the drawbacks of declaring bankruptcy could outweigh the benefits, although there are exceptions for those who need the automatic stay to protect from creditor collection. You can take advantage of alternative forms of debt relief, as you can’t buy a home for a few years after bankruptcy, and bankruptcy will stay on your credit for several years. Keep in mind that these forms of debt relief don’t offer as strong of protection as the automatic stay, and aren’t free- so you can waste funds trying these out just for it to lead to bankruptcy anyway. 

• Debt settlement: Debt settlement is an agreement for a creditor to accept a lump sum payment that is less than the balance owed. You can hire a company to negotiate on your behalf, but results aren’t guaranteed, and they typically charge 15-25% of the amount saved. So if a person owes credit card debt of $15,000 and the creditor accepts a 50% reduction, they will need to come up with $7,500 to pay off the debt as well as $1,125 to $1,875 in fees to the debt settlement company. The IRS also views debt forgiven through debt settlement as income for tax purposes. At this point, it may be worth it to declare bankruptcy instead and clear the rest of their debts at the same time. 
• Debt consolidation: Debt consolidation involves taking out a loan to pay off the rest of your debts in one fell swoop. With a favorable interest rate, this can help that person’s credit in the short term and save them money in the long term. When considering this option, the person should keep in mind potential fees they can be charged for consolidation, as well as the possibility that they will fall behind on payments for their consolidation loan. 
• Debt management plan: This form of debt relief is focused on unsecured non-priority debts, which are the simplest type of debt to clear in bankruptcy. A debt management plan reduces interest rates, typically below 10%, and lasts about 3 to 5 years. This is how long a chapter 13 bankruptcy lasts, and a chapter 7 bankruptcy is typically completed within 3 to 5 months. In a debt management plan, a credit counseling organization submits a proposed plan to creditors and if accepted, distributes monthly deposits based on a predetermined schedule. Unfortunately, those in debt management plans can’t open new lines of credit for however many years it takes to complete the plan, and could be forced to pay some creditors separately if they don’t agree to be included in the plan. 

Weigh Your Options With An Experienced Arizona Bankruptcy Lawyer

Bankruptcy is a powerful tool for debt relief, but it isn’t the only option out there. If the cost of living has you in a squeeze, there might be other ways to ease your burdens without turning to bankruptcy. On the other hand, pursuing these other forms could be a waste of time and effort (and funds) if your eventual bankruptcy filing is inevitable. A skilled member of our Arizona bankruptcy team can evaluate your debts to determine if bankruptcy can help your situation or if you should pursue a different path. If bankruptcy would be beneficial for your situation, we can also confirm if you qualify for our firm’s Zero Down post-filing payment plan option. Take advantage of the protections bankruptcy provides fast, and pay for it after you no longer have to pay for charges like interest and late fees. Learn more about the bankruptcy process in Arizona today, free of charge, at 480-405-1010. Don’t hesitate to contact us today!