Arizona Bankruptcy Lawyers Find Chandler Foreclosure Market Contributes to Large Caseloads
Chandler bankruptcy lawyers are continuing to find an enormous amount of both chapter 7 bankruptcy cases as well as chapter 13 bankruptcy cases, particularly in the case of chapter 13. With the economy still struggling, it is no great wonder that Arizona bankruptcy lawyers practicing throughout the state have discovered their specialty law practices have had a steadily increasing supply of consumers. Arizona bankruptcy lawyers have much in common, particularly in growth, with national bankruptcy lawyers in other states.
Consumer lending and consumer credit lines in the years beginning 2000 steadily rose year after year. With finance companies and credit card companies extending credit limits, lowering credit requirements and a seemingly booming economy these trends continued to rise through 2007 into 2008. When the bottom dropped out of the economy and consumer debt and default rose to an all-time high the government stepped in. In 2008 legislation was proposed to put the first consumer protection laws in place to aide consumers in the ever increasing fees credit card companies were charging.
Although the very best of intentions went into the new legislative efforts, by the time the bill became law in 2009, most large credit card issuers had found legal loopholes to skirt the consumer protection laws and even increase the charges to their card holders. Most creditors immediately began slashing consumer’s credit lines dramatically, and enacting fees under different names to increase revenues. Almost overnight consumers who had had tens of thousands of dollars of available credit found themselves with little to no borrowing power. Simultaneously, the unemployment rates continued to rise during these years, and many consumers who were relying upon their unused credit to pay for everyday living expenses were suddenly, with no warning, unable to cover every day and reoccurring monthly obligations.
This no doubt contributed to the rising foreclosure market in the city of Chandler and throughout Maricopa County. While other surrounding towns of similar populations, like Tempe, Gilbert, and even the larger Mesa also have seen such increases in both foreclosed properties and bankruptcy filings, Chandler has been hard hit as a community. Currently there are over 266 current bank-owned foreclosed properties on the market for sale. With Chandler’s population under 250,000 residents, that is greater than a 10% foreclosure rate, and thousands of homeowners that have lost their homes in the past three years.
The correlation between the increase in foreclosures in the city and the increase of bankruptcy filings on behalf of Chandler residents, Chandler bankruptcy attorneys have seen their case loads swell each and every year. Even with the increase in cases of consumers filing for chapter 7 and chapter 13 bankruptcy in recent years, Chandler bankruptcy attorneys are of the opinion that had some of the thousands of foreclosed upon homeowners consulted with an Arizona bankruptcy lawyer, they could have avoided foreclosure and still be in their homes.
Chandler bankruptcy lawyers want to educate consumers who are behind on their mortgage payments that filing for bankruptcy is likely one of the best ways a homeowner can either discharge their unsecured debt, or at least restructure it, as in the case of Chapter 13 bankruptcy. While it may be common sense when one cannot fully meet all their financial obligations, to send each creditor some amount each month as opposed to nothing, few realize that bankruptcy is a plausible option to help save their home.
People in financial trouble of this kind are wise to consult with a Chandler bankruptcy attorney to discover their options. Most often, if as a consumer you cannot meet all your monthly credit obligations, it is far better to keep the mortgage as current as possible and defer payments on obligations such as credit cards. While the very nature of credit cards is a hard notion to let go of, the truth about bankruptcy is that after one’s bankruptcy is discharged, it is easier to obtain credit once again, than it is for people who have made extended payment options, or settled their unsecured credit card debt for less than the full amount.
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