Life After Bankruptcy in Arizona

Life After Bankruptcy

What is life like after filing for bankruptcy? Many people want to know the answer to this question when considering filing for Chapter 7 or Chapter 13 bankruptcy in Tucson, Mesa, Tempe, or Glendale, Arizona. Filing bankruptcy provides a “fresh Start” financially and will definitely change a person’s life.

The particular consequences that filing Chapter 13 or Chapter 7 may have will vary from case to case, but there are general guidelines that you can follow upon the successful conclusion of your Chapter 7 or Chapter 13 case in order to rebuild your credit and help ensure that you do not end up in a similar situation in the future. Our experienced lawyers can help guide you with your life after bankruptcy.

One of the immediate gains from declaring bankruptcy is an “automatic stay.” An automatic stay stops any current collection activities such as: creditor calls, foreclosures, repossessions, and liens. After your debts have been fully discharged by the bankruptcy court, you will be able embark on your new life. There will be many ways to protect yourself from future financial trouble and regain your credit.

Ways to Protect Yourself From Future Poor Credit:

  • budgetGetting professional help to clean up your credit history
  • Start paying your bills on time! You don’t want financial disarray again.
  • Regular reviews of your credit report. Catch any mistakes right away.
  • Go out and acquire a secure credit card, your credit will rapidly improve.
  • You must learn how to live within your means and how to budget your money.

The My AZ Lawyers is a highly respected bankruptcy law firm. Our lawyers provide real help and great solutions to people with financial trouble. Our lawyers are dedicated to assisting anyone with insurmountable debts overcome their difficulties and create a new life after filing for bankruptcy. We can help you get a “Fresh Start”.

One of the most common questions raised by concerned inquirers is the future outlook of their financial situation after filing. While every chapter 13 and chapter 7 bankruptcy case is different, several truths exist and are constant. Provided that the person has all of the other necessary requirements for obtaining credit (e.g., adequate income, acceptable debt-to-income ratio, stable employment, stable residency), then the bankruptcy will not create a 7 to 10 year restriction on credit. Many of our clients are able to return to an good credit score within 3 to 5 years after filing for bankruptcy protection.

The path to recovery depends on which chapter you select and how you conduct your financial affairs after your debt has been wiped away by the bankruptcy court. There is a life after filing for bankruptcy. A “Fresh Start” awaits!


Vehicles in bankruptcyInitially, post-bankruptcy vehicle loan rates are similar to those of people who wish to purchase a vehicle with bad credit. The interest rates plunge within the first year, (with regular payments and no late payments). Credit unions are also a potential source for low interest loans fairly quickly after filing chapter 13 or chapter 7. Our experienced Arizona bankruptcy attorneys can give you additional information about some really helpful programs available only to individuals who recently filed for bankruptcy.

Home Mortgages

Buy a house after bankruptcyBelieve it or not, you are still able to buy a house after filing for Chapter 13 or Chapter 7 bankruptcy. You will have to wait before you can buy. However, the wait may not be as long as you think. While some banks are relatively conservative and want to see 4 years of good credit before they will deal with you, other banks only require 2 years. Lending standards vary company to company, the general industry-wide required waiting period is two (2) years. Of course, this assumes that you take active steps after filing bankruptcy to rebuild your credit and meets the minimum income requirements. In fact, shedding unsecured debts through filing bankruptcy allows you to show a better debt to income ratio than you would have had prior to filing for bankruptcy protection. Mortgage brokers are often able to find lenders who will make acceptable loans (i.e., respectable rates and reasonable fees) in as quick as 1 year. Predators exist, too, and you must be careful of hidden costs.

Credit Cards

Credit Cards after bankruptcyFor many of our clients who have declared bankruptcy, the fear of never being able to obtain credit is quickly replaced with bewilderment over the vast number of credit card offers they begin to receive shortly after their bankruptcy discharge. Our clients have quickly learned that there is whole segment of the finance industry that targets post-bankruptcy debtors.

Contrary to what you might believe, your credit score will improve rather quickly. Your formerly reported records of late or missed payments on multiple debts were wiped away when you filed for either Chapter 13 or Chapter 7 bankruptcy protection. These delinquent payments are now gone from your credit report. If you quickly re-establish some recordable credit references (like a credit card), you will see your score increase in 90-120 days. This, of course, will help you obtain more credit if you need it. Be very diligent to make all payments on new credit as agreed.

Learn More

At your free initial bankruptcy consultation, our lawyers will look at your financial problems together with you, so that you can better understand what filing chapter 13 or chapter 7 can do for you and what you can expect when the process is finished. Our lawyers who have helped many clients find debt relief and a fresh financial start will be with you every step of the way.

Contact our office by calling 502-306-8729 (Tucson Area) or 480-833-8000 (Phoenix Metro Area) to make an appointment for your free bankruptcy consultation and free debt evaluation.

The majority of the burden of having a successful life after filing bankruptcy lies with the efforts of the bankruptcy filer (You). If proper steps to managing finances aren’t taken, poor financial health may soon follow.

The period of life after a bankruptcy discharge can be both scary and exciting. On the one hand, after filing Chapter 7 or Chapter 13, you have a clean slate, meaning that your old debts are wiped away. On the other hand, after filing, you’re essentially at square one for establishing credit and building yourself up financially. you will have some work to do.

Filing chapter 7 deals a heavy blow to your credit score and is officially on your credit report for ten years, but the effects of filing do not have to be as long-lasting. With proper budgeting, a little work, and a fiscally sound mindset, you could be qualifying for home loans, credit cards, and vehicle leases (with good rates and terms) long before the bankruptcy falls off your credit report. Our lawyers may recommend a few pointers and tips to assure a successful life after bankruptcy for you.

Pointers to Help You with Your Financial Situation:

  • Make a budget and stick to it. Creating an outline of your income and specific expenses can go a long way in helping to reorganize your finances and spending habits. Living on a budget might be difficult but it will help you save more money than you thought was possible. Without following the budget that you create, financial problems may soon arise.
  • At all cost, Live within your means. Living within your means goes hand in hand with following a budget. By being smart with your spending and living within your means, you can avoid large unnecessary purchases than will otherwise get you in trouble later. Only buy what you can afford, don’t overspend your monies, make smarter choices with purchases than you did in the past.
  • Start Rebuilding your credit sooner than later. As soon as your bankruptcy is discharged by the bankruptcy court, it is recommended that you start rebuilding your credit by applying for secured credit cards, paying your bills on time, starting a savings account, and making smarter financial choices. Yes, time will help cure your poor credit score that you will have after filing Chapter 7 or Chapter 13, but if you make positive steps in conjunction with the time, you will find a better credit score quicker.
  • Sign up for a credit card. It’s not if you receive credit card offers after filing, but when you receive credit card offers, be sure that you do not put any money on these new credit cards or borrow any money that you cannot repay on time. It is important that you pay all credit cards on time and pay more than the minimum in order to pay them paid off as quickly as possible. These credit cards are beneficial and important as credit cards are an easy way to rebuild your credit after filing for bankruptcy. Once you have your credit rebuilt, you can make larger purchases, such as a house or a car.
  • Open a savings account and use it. By opening a savings account and depositing money on a regular basis, you can be better prepared in the event of a medical situation, unexpected emergency, or the loss of employment. A savings account, when utilized properly, will help you to avoid future financial difficulty. Prepare for unexpected financial situations because as you well know, they can arise.

Consult a Bankruptcy Lawyer Today

Life after declaring bankruptcy does not have to be difficult or something to dread. In fact, many of our clients experience a great sense of initial relief after filing. Their debts are discharged, a huge financial burden is lifted, and they are given the opportunity to start anew. Our trusted bankruptcy experts will help guide you through the opportunities waiting for you and will get you on the right path in your life after filing for bankruptcy.

Contact our law firm today to get advice on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt relief, and how these legal solution can help you start a new life. Don’t you deserve a “Fresh Start”?

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