Bankruptcy in Arizona
Bankruptcy in Arizona is really a last resort.
Many times when people are having financial trouble, the first option that comes to mind is to file for Bankruptcy. The truth of the matter is, there are other things that you can do to avoid filing for Bankruptcy – for example, if you are considering bankruptcy, you should also consider Arizona Debt Settlement.
Changes in the Arizona bankruptcy laws and National bankruptcy laws, such as chapter 7 bankruptcy laws, make it more difficult for many Americans to discharge or liquidate debt. Not only are they forced into long-term repayment of at least a portion of their debt through a Chapter 13, they must attend Consumer Credit Counseling, pay higher attorney fees, and be subject to allowances.
Is filing for bankruptcy in Arizona an option? Of course it is — but be sure to check into various bankruptcy alternative programs first. Get a free bankruptcy consultation by clicking on the banner below:
Since we help quite a few people who have had a bankruptcy in their past, here are FHA’s guidelines regarding bankruptcy.
Chapter 7 Bankruptcy:
If you have filed a chapter 7 bankruptcy in the past, FHA requires that the minimum waiting time before being approved for an FHA loan to be 2 years from the discharge date. Two years isn’t automatic — in the two years since discharge, you must have reestablished good credit or chosen to not incur new credit obligations. If you can show that the bankruptcy was caused by a one-time event (death, divorce, etc.) and/or was caused by extenuating circumstances beyond your control and that you have demonstrated a documented ability to manage your finances better — these are all taken into consideration.
Chapter 13 Bankruptcy:
According to FHA guidelines, a Chapter 13 does not disqualify you from getting FHA financing as long as you can show that you have at least one year of the pay-out period has elapsed under the plan and that all of the required payments (and mortgage payments when applicable) have been made on time. Also, the borrower must get approval from the court for the mortgage — all mortgagees must be approved by the court.