HOW A CHAPTER 13 BANKRUPTCY WORKS
For individuals with regular income, Chapter 13 is a consolidation and repayment form of bankruptcy. By providing protection from your creditors, filing Chapter 13 allows you to keep property and repay creditors via a manageable payment plan. Based on the amount of your debts, income and living expenses, an attorney at My AZ Lawyers will help you establish a repayment plan. The amount of repayment is set and paid to a Chapter 13 Trustee, who in turn distributes the money to your creditors. Chapter 13 is an affordable way to retain property and repay creditors for those individuals who have regular income.
TAKE CONTROL OF YOUR FINANCES
Chapter 13 Bankruptcy Lawyers in Mesa, Arizona
A chapter 13 bankruptcy is available for individuals or consumers and not businesses (unless the individual is a sole proprietor, thus qualifying). Generally, an individual can retain all personal property in a Chapter 13 filing as long as the Bankruptcy Court approves the proposed repayment plan. The sooner the case is filed, the better, in order to protect your valuable assets and accustomed lifestyle. It is best to schedule an appointment with a [cryout-button-dark url=”#”]MY AZ LAWYERS attorney[/cryout-button-dark] to discuss the plan you need to submit.
MESA BANKRUPTCY ATTORNEYS HELP CLIENTS IN ARIZONA FIND RELIEF FROM DEBT
Consolidate your debts and protect your property
- Stop harassing creditor phone calls
- Prevent your home from going into foreclosure
- Protect your car from repossession
- Stop wage garnishments
- Stop bank account levies
- Prevent lawsuits.
- Possibly eliminate debt
CHAPTER 13 BANKRUPTCY DEFINED
Payment and retention of a home usually is the top priority when filing and planning a Chapter 13 bankruptcy. Sometimes referred to as a “home-saver” bankruptcy, a Chapter 13 allows you to combine your debts (secured and unsecured), devise a repayment plan, and repay some or all of your debt while protecting you from liquidation or creditor harassment. In one monthly, reasonable payment you are able to pay on the debt.
CHAPTER 13 BANKRUPTCY TIME LINE AND PROCESS
From filing to discharge, typically a Chapter 13 could last 32 to 60 months. Your Arizona bankruptcy attorney at My AZ Lawyers will be better able to assess the length of the case based upon your personal situation and their past experiences filing Chapter 13. In terms of the plan, there are factors that determine your time line: amount of payment, income guidelines, and disposable income all are taken into consideration.
- Contact My AZ Lawyers to schedule your [cryout-button-dark url=”#”]FREE CONSULTATION[/cryout-button-dark] with an experienced bankruptcy law attorney. (480)833-80002.
- Prepare the appropriate paperwork and fill out the needed forms. (If married, spouse fills out forms as well). Your attorney will instruct you as to which forms you need and how to correctly prepare them.
- Meet with My AZ Lawyers to review your paperwork and assess your financial situation and determine if a Chapter 13 bankruptcy is in your best interest. Your attorney will give you advice as to what your best options are for you in order to be debt-free.
- Complete credit counseling course. Before filing Chapter 13, you are required to complete a session on credit counseling.
- Approximately a month after filing your case, you and your attorney meet with creditors at a hearing called the Meeting of Creditors. A Chapter Trustee reviews your case at this hearing.
- A bankruptcy Judge approves your payment plan at a Confirmation Hearing.
- A second credit counseling course must be completed before receiving discharge papers.
- An order of discharge from the Bankruptcy Court is issued upon completion of your repayment plan and all met requirements of Chapter 13 bankruptcy law.
MY AZ LAWYERS OFFERS AFFORDABLE LEGAL REPRESENTATION FOR ARIZONA
One key benefit to the Chapter 13 filing, is that the unsecured debt is addressed interest free. There is no outrageous interest rates on credit cards as you pay your debt. Chapter 13 is a good option for some individuals who do not qualify for chapter 7 bankruptcy but still want to achieve a debt-free future.
- Child or Spousal support
- Criminal fines or penalties
- Debts incurred through fraud
- Student loans
- Debt due to property settlement in a divorce
- Some kinds of taxes including real estate and income tax (these may be addressed in the payment plan, just not eliminated)
- Debt from property damage or personal injury done willfully or maliciously
ADVANTAGES TO FILING CHAPTER 13 BANKRUPTCY
- Prevents mortgage default
- NO INTEREST on credit card and finance company debt
- NO INTEREST on tax debt or penalties
- Possible elimination of a second mortgage lien debt
- Reduced interest rates on secured loans
- My AZ Lawyers are experienced in filing Chapter 13 bankruptcies and can help you take advantage of this type of debt relief.