Chapter 13 Bankruptcy – Is It Right For You?
What is chapter 13 bankruptcy and is it right for you? If you are facing insurmountable debt, you are probably thinking about bankruptcy options. You can and should have chapter 13 bankruptcy explained by a bankruptcy lawyer in Glendale, AZ, to fully understand it and how it applies to your situation. A simple explanation may help you in your decision making process.
What is Chapter 13 Bankruptcy?
Every bankruptcy lawyer in Glendale, AZ hears this question. If you are wondering, what is chapter 13 bankruptcy, it can be summed up like this – this type of bankruptcy allows you to keep your property but you still have to pay back some debt based on your ability to pay and the value of your unprotected assets over a specific time limit. Once all payments have been made, any remaining personal liability on debt is eliminated.
What is Chapter 13 Bankruptcy, Compared to Chapter 7?
Chapter 7 bankruptcy is another type of bankruptcy which discharges most of your debts entirely, but unprotected assets can be taken from you in the process. If you need the difference between chapter 7 and chapter 13 bankruptcy explained in detail, contact a bankruptcy lawyer in Glendale, AZ.
What is Chapter 13 Capable of Doing for Me?
Filing chapter 13 bankruptcy with the help of a bankruptcy lawyer allows you to repay your debts with a plan based on your ability to pay. Your bankruptcy lawyer in Glendale, AZ will help you develop a repayment plan specific to you, your debt, and the legal requirements of the state of Arizona.
How Do I File for Chapter 13 Bankruptcy?
You must prove that you have enough income to handle repayment, and you are obligated to undergo credit counseling before you are eligible. Your debt must fall into a certain range, which your bankruptcy lawyer can help determine.
Debt Repayment with Chapter 13 Bankruptcy Explained
Once you have filed for chapter 13 bankruptcy, you must start making monthly plan payments to a trustee, payments that are generally much lower than before. First, you have to pay priority debts as determined by legislation. You also must pay regular sums toward secured debts, and show that you are attempting to pay down unsecured debts with any leftover household funds.
When the plan is complete, any remaining debts that can be discharged will be.
How to Get Started with Chapter 13 Bankruptcy
The first step in filing for a chapter 13 bankruptcy is consulting with a bankruptcy lawyer in Glendale, AZ. He or she can advise you of procedures to follow, time limits, and required documentation in order to meet your goals.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.