The Carroll Law Firm is not “a Bankruptcy Law Firm”, and it never was our intention or expectation that we would be filing as many Bankruptcy Petitions on behalf of so many individuals, families and businesses. In fact, in 2007 when the Arizona office was first opened, if you needed representation in a Bankruptcy Proceeding, we would have referred you to another lawyer. Needless to say, as our Arizona office started to grow, we received more and more calls and consultations where it became obvious that for many of our clients a Bankruptcy filing made a lot of sense. So, we purchased the latest software, expanded the firm, and offered to represent people who needed to file Bankruptcy Proceedings.
Although most people have been able to survive the recession and still have their jobs and are able to pay their bills, many of their neighbors are not so fortunate. Their homes are underwater, they can no longer keep up with the minimum payments on their credit cards, which are now “tapped out,” and their income is shrinking. For years, most Americans lived “within their means” and many more lived beyond them. Based on past performance of real estate, there was a realistic expectation that they would continue to build equity in their homes. So what difference did it make if you ran up $10,000 in credit card debt if your home appreciated $20,000 last year. And when you reached your credit card limit you merely took an equity line against your home to pay off your credit card, and then started the “cycle” of debt building all over again. But then came the recession, and the cash cow that was our homes no longer had any equity, and when the borrowers reached their credit card limits they “hit the wall.” If they happened to be late on their credit card payments their minimum payments increased dramatically as the interest on the card adjusted to the “default rate”, which often was as much as 30%. They could no longer keep up with huge car payments and many had their vehicles repossessed resulting in thousands of dollars in deficiencies. Ultimately, their creditors levy their bank accounts sweeping away their small remaining savings balances and they find their wages are being garnished. What was once the American Dream has now become their worst nightmare, and they feel they are unable to control their lives.
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