Chapter 13 Bankruptcy Lawyer in Phoenix, Arizona
Helping Clients Resolve Their Debts
If you are facing foreclosure, repossession, or other creditor collection activities, bankruptcy may be a valid option for you. Unlike Chapter 7 bankruptcy, which completely wipes out your debt, Chapter 13 bankruptcy sets you up with a payment plan for repaying a partial portion of your debt. Once that portion of your debt is paid, the rest will be discharged, leaving you with a clean slate.
Chapter 13 bankruptcy is an excellent option for many individuals, especially those facing foreclosure. Consulting an attorney before filing is essential, as there are certain qualification and eligibility requirements you must meet. Resolvere Law PLLC can assist you every step of the way, from examining your eligibility to filing your petition with the court. Call 480-702-2272 today for a legal consultation.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, also known as a “reorganization,” allows individuals to pay off a small portion of their debts over a three to five-year period. These payments are calculated based on disposable income, which is any money left over after you have paid your monthly expenses.
Individuals who wish to avoid foreclosure often file for Chapter 13 bankruptcy to save their homes. Chapter 13 bankruptcy can also protect assets that are not covered under Chapter 7 bankruptcy. Chapter 13 bankruptcy appears on your credit report for a shorter period of time than Chapter 7 bankruptcy.
Who is Eligible for Chapter 13 Bankruptcy?
Chapter 13 bankruptcy has far fewer eligibility requirements than Chapter 7 bankruptcy. Individuals must have a stable income with enough disposable money to pay down their debts as required by their payment plan. Any secured and unsecured debts must fall below certain thresholds. Only individuals are eligible for Chapter 13 bankruptcy; businesses cannot file.
Ask yourself the following questions to determine if Chapter 13 bankruptcy is right for you:
- Are you preventing the foreclosure of your home or the repossession of your vehicle?
- Are your wages being garnished?
- Are you being harassed or sued by creditors?
- Do you have a stable monthly income?
- Do you have debts like child support, student loans, or unpaid income taxes, which cannot be discharged under Chapter 7?
- Do you have a co-debtor on personal debt?
What Are the Benefits of Chapter 13 Bankruptcy?
The main benefit of filing for Chapter 13 bankruptcy is that your assets are protected. In many cases, you can file for Chapter 13 bankruptcy without losing ownership of your assets.
Other benefits of Chapter 13 bankruptcy include the following:
Your debts will be broken up into manageable monthly payments that you’ll pay for the next three to five years. Those payments will never change and do not accrue interest. When you’re done making payments, whatever is left of your debt will be discharged.
Once you’ve filed for Chapter 13 bankruptcy, creditors are not allowed to contact you anymore. You will no longer receive harassing letters or threatening phone calls.
Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows you to keep your property whether it is exempt or not. In most cases, you can maintain ownership of your primary residence, your vehicles, your personal property, money in your bank account, pensions and retirement accounts, and some insurance policies.
Can a Chapter 13 Bankruptcy Lawyer Help Me?
Many Americans know the overwhelming and frustrating feeling of being in a large amount of debt. Fortunately, there is a way to make your debt much more manageable by filing for Chapter 13 bankruptcy. Your debt can be broken up into small monthly payments, immediately stopping all harassing creditor calls and foreclosure actions taken against you.
Filing Chapter 13 bankruptcy is much easier with the help of a knowledgeable attorney on your side. Resolvere Law PLLC can assist you by determining eligibility, filing your petition for bankruptcy, and answering questions on your behalf from the court or bankruptcy trustee. If you crave financial freedom but you aren’t sure where to start, reach out today. Call 480-702-2272 to learn more about Chapter 13 bankruptcy and whether it’s right for you.