Chapter 13 Bankruptcy

It’s Not for Everyone, Is It For You?

Many people in Arizona are in need of an experienced Arizona bankruptcy attorney to help them through their financial troubles.  There are 2 main types of bankruptcy that most filers in Arizona file when declaring bankruptcy.  There is a chapter 7 bankruptcy, which completely discharges your debt, There is also Chapter 13 bankruptcy, which unlike Ch 7, allows you to set up an affordable plan for repaying a portion of your debt.

In a chapter 13 bankruptcy, following successful completion of your customized, three- to five-year bankruptcy plan, your remaining unsecured debt will be discharged. In Arizona, filing chapter 13 bankruptcy is not for everyone, you have to have a minimum income in order to qualify for the Chapter 13 repayment plan.  Contact a low cost bankruptcy lawyer in Arizona to help you determine which chapter of bankruptcy may be the best for you and your family.

When meeting with your bankruptcy lawyer, it is important to establish a feasible repayment plan within your Arizona chapter 13 bankruptcy filing. An experienced Chapter 13 bankruptcy lawyer will carefully examine your income, expenses (such as your mortgage and car payments), and your debt, in order to craft a repayment plan that works for you. Believe it or not, quite often people who file for chapter 13 bankruptcy protection see their credit scores increase within one year of filing Chapter 13 bankruptcy.

If you are facing foreclosure or repossession, you may not know where to turn. Even if you’re unsure about bankruptcy, if you want to keep your home and possessions, it would be a good idea to speak to a knowledgeable bankruptcy attorney. Not all bankruptcy lawyers are experienced in Chapter 13 bankruptcy. There is a lot more to a chapter 13 bankruptcy than there is to a Chapter 7 bankruptcy. Thus, many less experienced attorneys throw their hat in to the ring of bankruptcy attorney and attempt to file bankruptcies without as much experience as they should.

Filing a chapter 13 bankruptcy usually stops collection actions against debtors — garnishments, creditor phone calls, and lawsuits. After filing for chapter 13 bankruptcy protection, the debtor works with a trustee and the creditors in order to develop a payment plan. A person with a steady income, who is self-employed, or for someone operating an unincorporated business, chapter 13 bankruptcy is an option that allows the debtor to create and submit a plan to repay their debt over a period of time.

Chapter 13 bankruptcy in Arizona can do many things for you and your family.  One of the benefits of filing chapter 13 is your choice to rehabilitate your finances. With in the ch 13, you are allowed time to pay of debts without losing your personal property or home/real estate. If you are ineligible for chapter 7 bankruptcy, you may want to pursue chapter 13. If you are facing the risk of foreclosure on your home, declaring chapter 13 may allow you to establish a payment schedule to repay the mortgage and stop foreclosure proceedings. Also, there are some debts that may not be discharged under the bankruptcy code (child support, student loans, spousal support). A plan under Chapter 13 can help ease the financial burdens of these types of debt. A relief not given on these debts in a chapter 7 bankruptcy.

A Chapter 13 in Arizona can be complex; you will need to file an official petition, calculate your debts, and make payments per your repayment plan. Bankruptcy Chapter 13 is not for everyone; it may not be the best bankruptcy format for your particular financial situation. If you wish to file chapter 13, or if you have questions about filing, seek the advice of an experienced bankruptcy attorney. A knowledgeable Arizona bankruptcy attorney will be able to help you make the best decisions for your particular bankruptcy case and assist you with the legal documentations and help you better understand bankruptcy law.  Call our Arizona bankruptcy attorneys today.