FAQs2020-03-02T20:23:47+00:00

FREQUENTLY ASKED BANKRUPTCY QUESTIONS

Will I lose my Dr. if I file bankruptcy on their fees?2019-06-09T02:53:47+00:00

Clients who choose to seek bankruptcy protection as the best means to eliminate debt have a fear losing their doctor if they file bankruptcy to discharge medical debt owed.

Doctor bills are unsecured debt. Unsecured debt may be wiped out in a Chapter 7 bankruptcy. When a bankruptcy is filed,  and money is owed to a doctor, this debt and creditor is required to be listed in your bankruptcy petition.  Filing bankruptcy on your doctor doesn’t necessarily mean that you have to change physicians. Basically, even if you intend on paying the medical debt, it is unavoidable that it be documented on the bankruptcy paperwork. 

It is possible that your doctor will drop you as a patient if you discharge the money you owe in a bankruptcy, as long as you’re not needing emergency care..  A federal law requires a person seeking emergency medial treatment at an emergency department be treated and stabilized. 

On the other hand, a doctor may understand your financial situation, offer payment options, and continue treating you. It does depend on what kind of relationship you have with your physician and if you are able to pay back money owed to the doctor after your debt is discharged in bankruptcy. 

What won’t bankruptcy do for me?2019-06-06T00:19:48+00:00

What Bankruptcy Cannot Do:

Bankruptcy is an option for many debt problems, but it is not the cure-all for every financial problem. Bankruptcy may not be the right choice for each client. We encourage you to take advantage of our firm’s free consultation with an experienced Arizona Bankruptcy Law attorney in order to discuss your specific case. A debt evaluation will give you answers and options and our bankruptcy team can help you determine if a bankruptcy is the right move toward your financial goals.

Bankruptcy can wipe out certain debt, but there are some debts that cannot be discharged in a bankruptcy:

  • Back child support, debt dedicated to family support, or alimony obligations
  • Debt caused by DUI or personal injury/death
  • Student loans, unless hardship can be proven
  • Criminal restitution or fines for violating the law
  • Income tax debts (within 3 years) and other tax debt
  • Certain debts of secured creditors
I received a notice that a creditor is suing me. Can I still file bankruptcy?2019-02-24T18:51:58+00:00
You can file for bankruptcy if a creditor is already suing you. The automatic stay of Chapter 7 bankruptcy stops almost all collection actions, including lawsuits.  When the bankruptcy petition is filed, any legal action brought against you must  cease.
Will filing for bankruptcy ruin my credit forever?2019-02-24T18:19:37+00:00

A bankruptcy will not ruin your credit forever. A bankruptcy will cause a drop initially in your credit score, but in many cases, this score can come back up fairly quickly. Taking the necessary steps after a bankruptcy discharge will ensure that your credit is repaired as quickly as possible. In fact, some cases have a higher credit score AFTER bankruptcy within one year. That is typically because pre-bankruptcy debt was already damaging the credit score. Every major credit bureau uses a different formula to determine a credit score, so it may vary.

 

When should I consider bankruptcy?2019-02-24T17:38:13+00:00

You may consider bankruptcy if your current situation includes: 

  • A creditor threatening foreclosure
  • You are facing a repossession
  • You are facing or experiencing a wage garnishment
  • If your unpaid debt and missed monthly payments are causing irrevocable damage to your credit report
  • If the total amount of unpaid bills is too great to consider ever repaying them
  • A creditor is threatening a lawsuit against you
  • Creditors are harassing you with phone calls and communication to collect a debt.

 

Will filing for bankruptcy ruin my credit for good?2019-02-24T17:08:26+00:00

According to the bankruptcy law, your filing will show on your credit report for a period of 10 years. You can immediately start repairing your credit, however. Starting after your bankruptcy discharge, making payments on time on your car, mortgage, rent, and other bills will help your credit score. There are many cases where a person who has filed bankruptcy is able to purchase a car or even a home within a year after a bankruptcy.

 

CONTACT OUR ARIZONA BANKRUPTCY LAWYERS


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    Getting a fresh financial start and wiping out debt begins with a FREE CONSULTATION and debt evaluation with our experienced Arizona Bankruptcy attorney. Chapter Bankruptcy Lawyers offers expert legal representation and $0 down to file your bankruptcy.

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    After evaluating your debt, our attorney will recommend the best means by which to wipe out your debt. Next, upon qualifying for our program, you pay $0 down for legal fees. A payment arrangement is agreed upon in order to make low monthly payments for post-filing costs. 

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