If you live in the Phoenix area and are considering filing for personal bankruptcy, there are some things you should know. Of course, you will need to know the general rules and regulations on filing for bankruptcy, but you should also be aware of information pertaining to the area in which you live.

Deciding to file for bankruptcy is a hard choice, but sometimes it is the best one. In the state of Arizona, you may be able to file for bankruptcy if you have gone for an extended period of time without finding employment, have a large amount of past due medical bills, or have gotten in over your head in debt. Before making the decision to file for bankruptcy, however, you should be sure that you have exhausted all other repayment options. Once you are sure that bankruptcy is the best possible course of action for you and your family, you will need to fill out the forms for what is known as a Chapter 7 Bankruptcy. These forms can be a bit confusing, and many find it helpful to seek out the assistance of a Phoenix area bankruptcy lawyer or to purchase a bankruptcy kit with step by step instructions on filling out the forms. You will need to be sure that the kit you purchase is specifically designed to be used in the state of Arizona.

Since this can be a long and arduous process, it is strongly advised that you seek out the help of an attorney. Fortunately, in the Phoenix area, there are many free (pro bono) or reduced costs attorneys that can help you if you do not have adequate funds to pay for a full priced attorney. After all, the last thing you want to do during the bankruptcy process is to acquire more debt.

Going through the bankruptcy process is hard enough. Do not make it harder by falling for the potential pitfalls. What are some of the pitfalls? For instance, unhelpful credit counselors. Often for-profit or non- credentialed counseling organizations make promises that they cannot or do not keep. Be especially careful when asked for a large sum of money in advance. To check the organization’s reputation, contact your state Attorney General, consumer protection agency, or Better Business Bureau. “Credit repair” clinics and “credit doctors” have been frequently criticized for promising that they can remove negative information from your credit report. But accurate information cannot be changed. If information is old or inaccurate, you can contact a credit bureau yourself and ask that it be removed. Risky refinancing options. When already in financial trouble, second mortgages greatly increase the risk that you may lose your home. Be wary of any loan consolidations or other refinancing that actually increase interest owed or require payments of points or large fees. A Final Word: Don’t lose hope, even if you despair of ever recovering financially. You can regain financial health if you act.