Bankruptcy Information

Matthew Foley

Matthew Foley

Esq. & MBA

Contact a Friendly Attorney

We are affordable, exceptionally knowledgeable, and nice! You’ll love our office.

Call: (520) 795-5600

 

CLIENT TESTIMONIALS:

Excellent

Mr. Foley handled my chapter 7. After my first meeting with him I instantly felt better about the whole thing. I was stressed about my finances and felt guilty for even considering a bankruptcy. I felt like a total failure. Mr. Foley was able to help me see that it was the right business decision and was also able to help me by pointing me to resources for a redemption loan on my vehicle. If you are considering a bankruptcy attorney, I would recommend you consult with Mr. Foley.

Client #1
July 18, 2017

CLIENT TESTIMONIALS:

Your Excellent Choice

Matt and his team rock !!!!!!!!
They took the stress and worries out of the whole process and made it smooth and stress free. He and his staff are caring, knowledgeable, very organized, honest and affordable. They responded quickly to any questions or concerns I had.

I would highly recommend Matt and his team to anyone who needs a bankruptcy…… Thank you so much

Karina
July 13, 2017

CLIENT TESTIMONIALS:

Very helpful even though not client (yet)

Matthew represented us at a Trustee meeting when our Phoenix attorney could not be present. He was knowledgeable and helpful. In addition, when my existing attorney became “disengaged”, we contacted Matt and he spent a lot of time helping us understand some issues we were having. He was supportive, helpful, and gave excellent advice even though we were not his clients. I highly recommend him and he will be my first call for any future legal issues.

Doug
May 23, 2017

CLIENT TESTIMONIALS:

Caught in a Bind

I was in a real bind and not knowing the law, I contacted the best reviewed bankruptcy lawyer in town. After the consultation I left feeling better about my situation with a much better understanding of the law. The man knows his stuff and is very knowledgeable. I hired him and he did an amazing job. I literally did nothing but answer questions in an honest manor. The staff is a collection of incredible people, who are kind and very nice and understanding towards your situation. Thank you so so much for everything and would recommend the heck out of this gentlemen. Awesome experience.

Jesus
March 6, 2017

CLIENT TESTIMONIALS:

Truly Awesome

Matt and his team rock!!! They took the stress and worries out of the whole process and made it smooth and stress free. He and his staff are caring, knowledgeable, very organized, honest and affordable. They responded quickly to any questions or concerns I had. I would highly recommend Matt and his team to anyone who needs a bankruptcy or debt settlement attorney.

Teresa
October 21, 2016

Debt Relief Options

When facing debt issues, there are only several options.  With these debt alternatives, timing is almost as important as the option itself.  The underlying goal should be to eliminate debt quickly, inexpensively, and in a comprehensive manner that will allow families to reestablish themselves.  Below is a brief discussion of each option, as well as, a warning to avoid particular mistakes and/or debt scams.

Our recommendation is to always speak with a debt attorney before making any decision.  Most firms offer a free initial consultation and debtors can interview several attorneys.  Debt relief is a complex decision that involves careful consideration of one’s property, available funds, amount of debt, type of debt, and future credit ratings.  An attorney’s case evaluation should be designed to create a debt relief strategy that takes careful consideration of all these important factors.

Credit Counseling

This option is ideal for families that have minimal debt and some discretionary money.  The purpose of credit counseling is to use a non-profit organization to reach a compromise between a debtor and their creditors.  This can include reduced payments and interest rates.  If consumers have too much debt, negotiating with creditors is ineffective and only postpones a fresh start.  If consumers do not have any discretionary money, credit counseling will not work.

Credit counseling poses several problems.  Fundamentally, it does not reduce debt amounts and not all creditors will participate.  In addition, credit counseling does not protect debtors from lawsuits.  Consumers also must be wary of debt relief companies that appear to be a credit counseling agency, but are actually disguised debt settlement companies.

The best and safest course of action is to first meet with a debt attorney and let them refer credit counseling candidates to a reputable non-profit agency.  Clients that improperly pursue credit counseling will eventually fail.  Unsuccessful efforts with credit counseling or with a debt management company is frustrating for clients, as thousands of dollars are wasted and months or years elapse.  Consumers must be careful.

Debt Settlement

This option should only be pursued by candidates that have access to funds and that cannot otherwise file for bankruptcy.  Typically, debt settlement is used when a consumer has too high of an income to file a Chapter 13 bankruptcy or has too many non-exempt assets to file a Chapter 7 bankruptcy.  Remember, one of the goals of debt relief is to eliminate debt inexpensively.  Debt settlement is never inexpensive.

The basic concept of debt settlement is to negotiate a one-time settlement payment that eliminates a debt at a fraction of the outstanding balance.  For example, a consumer may receive collection calls for a delinquent credit card with offers to settle the outstanding balance.  Some debts are simple to settle, whereas others are complex and involve lengthy negotiations.  Only in particular instances does it make sense to actually settle the debt.

We have settled hundreds of thousands of dollars of debt, but only when it is an appropriate solution.  The problem with debt settlement is that it is expensive, often unnecessary, and has the same effect as bankruptcy on credit.  In addition, settling debt can create taxable income.  The only candidates that should consider debt settlement are debtors that have large non-exempt assets and/or make too much money to effectively file for bankruptcy.

That said, an entire debt settlement/management industry has emerged that often use the slogans “avoid bankruptcy”, “if you have more than $10,000 in debt…”, “you may be eligible for new government debt relief program”, etc.  Our strong recommendation is to avoid these firms, even if they appear to be a law firm.  Many states have banned them, however, Arizona still allows debt settlement companies to operate.  Please see the Federal Trade Commission for detailed warnings about debt settlement firms.

As another caution, clients should not borrow money from a friend or family member to settle a debt.  These personal obligations can create future issues and a better option may exist.  Also, retirement accounts should not be used to settle debt.  Depleting retirement savings can be a disastrous financial decision, of which many clients later regret.

Bankruptcy

If a Tucson family needs debt relief, bankruptcy is often the best option.  Why?  Bankruptcy provides the most comprehensive debt relief, costs less money than credit counseling or debt settlement, provides no taxable consequences, and is the quickest method to helping debtors re-establish their credit.  Often the largest hurdle with bankruptcy is simply educating debtors and dispelling the bankruptcy myths.  Bankruptcy is immediate and applies to all debts and property is seldom lost.

There are two types of consumer bankruptcies.  A Chapter 7 bankruptcy is a “liquidation” process, where a debtor’s non-exempt assets are sold and the resulting funds are distributed to creditors.  In practice, few debtors lose property when working with a competent attorney.  The second consumer bankruptcy, a chapter 13, is a debt consolidation that is accomplished through the bankruptcy court.  The resulting monthly payment is premised on the debtor’s financial ability and the restructuring provides incredible benefits to the debtor(s).

For more information on bankruptcy options, visit Chapter 7 or Chapter 13.