Arizona Debt Consolidation As an Alternative to Bankruptcy (cont.)
Contributed by Melanie Vannuys
In Arizona, this second option is especially important to consider if you have more equity in your home than allowed by Arizona bankruptcy exemption laws. Equity is the difference between the value of the property and what is owed on the property. Certain exemption limits apply to any equity you have on any property. Each state is different, so it's best to speak with a professional on this matter before deciding what to do.
In Arizona, if you have more equity in your home than can be protected by the stated exemptions, you may be forced into Chapter 7 bankruptcy, or if you prefer to keep your home, file a new payment arrangement under Chapter 13 bankruptcy.
In Arizona, Are There Ways To Avoid Needing Debt Consolidation Altogether?
That answer is a resounding, YES! It doesn't matter what state you live in, the same rules apply when it comes to avoiding the need for consolidating your debt. Stay out of debt! Yes, we all have to incur some types of debt, it's unavoidable. Falling into this category would be our mortgage, a car loan and possibly student loans. It's the "unnecessary" debt that we need to avoid. Unless you can pay cash for a large purchase, don't buy it now.
The interest you'll pay by using your credit card will only add to the cost of that large screen television you just had to have. And if you can't pay cash for it now, it's likely you won't have the cash to pay the bill in full when it comes due. Avoid this vicious cycle!
