For consumers that have made the decision to file bankruptcy, they can attest to the fact that there is, indeed, life after bankruptcy.  For those that are contemplating a decision to file for bankruptcy, this is one of the questions that they ask themselves the most.  The unknown, what happens after a bankruptcy case is discharged, can be scary.  Rest assured, there is life after bankruptcy and in the majority of cases it is a much better life than what was experienced prior to the filing the bankruptcy petition.
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The United States Bankruptcy Court, District of Arizona, maintains bankruptcy statistics for all cases filed in Arizona.  The state of Arizona is listed as one of the top five states being hardest hit by both the mortgage crunch as well as the soft housing market.  Even though unemployment is lower than the national average, bankruptcy cases in Arizona have risen dramatically from 2006 until 2007.

In January 2006, there were 162 chapter 7 bankruptcies filed in the Phoenix court, 42 filed in the Tucson court and 8 filed in the Yuma court for a total of 212 chapter 7 bankruptcies.  In January of 2007 these numbers saw a dramatic increase.  The Phoenix court system processed 273 chapter 7 bankruptcies which represented a 68.5% increase.  In Tucson, the number jumped to 106 cases in January of 2007 equaling a 152.3% increase of January 2006.  In Yuma, the increase was even more staggering at 287% jumping from 8 to 31.  When comparing January 2006 to January 2007, chapter 7 bankruptcies filed in Arizona increased 93.3%.
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Predatory lending practices by many mortgage companies have led to increased bankruptcy filings.  As new mortgage programs were created to help serve those markets that were previously unable to secure a mortgage, predatory lending began to rise.  According to the US Department of Housing and Urban Development, “Predatory mortgage lending practices strip borrowers of home equity and threaten families with foreclosure, destabilizing the very communities that are beginning to enjoy the fruits of our nation’s economic success.”
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Payday loans, also called cash advance loans, are considered by some in the finance industry to be the scourge of America.  Getting involved with payday loans can put some consumers on the quick route to bankruptcy.   Individuals who are facing a financial crunch are bombarded with advertisements on TV and radio and a plethora of stores, generally bunched into certain neighborhoods due to restrictions by some municipalities, offering them a quick fix for their financial woes.
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One of the most commonly asked questions by individuals considering a bankruptcy petition is whether student loans are dischargeable debt.  Unfortunately, the quick answer to this question is no.  Prior to the Bankruptcy Abuse Prevent and Consumer Protection Act of 2005 (BAPCPA), private student loans were dischargeable in bankruptcy proceedings.  A private student loan is an education loan that is not guaranteed by the government.  Prior to the BAPCPA in 2005, private student loans were treated like other unsecured debt and readily discharged.
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