Causes of Bankruptcy in Arizona
Many people who come to our office seeking bankruptcy relief express embarrassment or shame, but this is not the way it should be. No one — no matter how wealthy — is immune to the possibility of insurmountable debt. It can happen to anyone. We are thrilled when people come to us, because we have the opportunity to help them find debt relief and get a fresh start on their financial futures.
At the Law Offices of Farnsworth Mortensen, PLLC, our lawyers, paralegals and staff share our law firm's commitment to our clients. For more than 20 years, our legal team has been helping people find debt relief through bankruptcy.
More than 10,000 bankruptcies filed
Some of the most common causes of bankruptcy include:
- Medical issues: Sudden medical emergencies, especially those not covered by medical insurance, can present insurmountable financial problems for most families involved.
- Loss of spouse/loved one: When the primary care provider dies unexpectedly, the family has to absorb the financial burden of paying for daily expenses and any debts that the deceased left behind. This is more than most families can bear.
- Job loss: Obviously, losing your primary source of income will cripple your ability to maintain payments on your debts.
- Divorce: The attorney fees and court costs associated with divorce can be catastrophic for many individuals. Add child support, spousal support and the costs of maintaining two households instead of one, and divorce quickly becomes a devastating financial event for many people involved.
- Downturn in the economy: Nothing seems secure anymore in this current economic state, and no one is immune to the devastating effects of our economic recession.
- Tax issues: Delinquent payments, auditing problems and other tax-related issues cause otherwise viable individuals to seek bankruptcy relief.
- Payday loans: Although the laws have changed recently regarding payday loans, you might be facing the tyrannical interest rates of a payday loan, causing you to seek bankruptcy relief.
Bankruptcy also comes as a result of failed business ventures. Although Chapter 7 and Chapter 13 are not generally available as debt-relief options for LLCs and corporations, we can help you find the personal debt-relief options that will work best for your situation if you are facing serious personal debt that resulted from your entrepreneurial endeavors.
Contact Phoenix Bankruptcy Lawyers ∙ Free Initial Consultations
Regardless of the cause of your financial difficulties, one of the most important things you can do is get straight answers. This will alleviate some of the anxiety you might be experiencing, while giving you the information you need to make smart decisions about your financial future. We offer free initial consultations so that you have the chance to talk with an experienced lawyer and learn about your rights and options. Call 480-820-3600 in Phoenix, 520-298-3300 in Tucson, 888-634-0000 toll-free, or contact us online to schedule your free initial consultation with an attorney from our firm.
