Chapter 13 Bankruptcy Lawyers in Phoenix Easing the Burden of Filing
Being up to your neck in debt can be about as pleasant as hearing nails against a chalkboard. The reality of the situation is that things happen sometimes and your finances may get out of control. It’s also possible you are dealing with other issues in your life that affect your ability to be current with any payments owed to creditors. If you feel like you fall under those categories, you are not alone. Fortunately, there may be options available for you to escape the clutches of crippling debt. Chapter 13 bankruptcy may be worth a look at if you are trying to be proactive in getting rid of your debt. Not all bankruptcies are the same, and Chapter 13 bankruptcy is no different.
Understanding the details and requirements to file for Chapter 13 bankruptcy can get tricky. It is recommended that you consult with a law firm that has experienced bankruptcy attorneys in Phoenix waiting to help you sail across the troubled waters of your situation and bring you back to shore. If you are worried that you may not be able to afford a bankruptcy attorney, plans that require zero down for legal aid may be available to you.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is quite different than a Chapter 7 bankruptcy in a few key ways. Chapter 13 bankruptcy is less of a liquidation of assets and more of a reorganization of debt. While Chapter 7 bankruptcy may cause you to lose properties, including your home, Chapter 13 does not require you to let go of your properties in order to pay creditors. Instead, you will submit a repayment plan to the bankruptcy court that consolidates some of your secured and unsecured debt into a more digestible bi-weekly or monthly payment plan. This restructuring allows you more flexibility to sustain your living expenses and keep your home. However, even though your home is saved from foreclosure, doesn’t mean you can stop making payments on it. Your repayment plan may be separate from your mortgage, so it is important to make consistent payments on both while your plan is enacted.
Payment plans can last anywhere between 3-5 years. Once you are finished with your repayment plan, you may be clear of owing certain creditors any more money. Situations vary and certain requirements must be met to file for Chapter 13. Be sure to consult with a lawyer experienced in bankruptcy law to determine your best course of action. A Chapter 13 bankruptcy attorney provides you with advice and guidance, from determining your eligibility to helping you with a cost-effective payment plan, to make sure your bankruptcy goes smoothly.
What Goes into a Chapter 13 Repayment Plan?
Soon after you petition for Chapter 13 bankruptcy, you must provide the court with a repayment plan that suitably fits within the realm of your budget. The court must approve this repayment plan before moving forward with your bankruptcy so it is important to determine a reasonable and fair fixed payment when creating your payment plan.
It’s important to take your living expenses into consideration when creating a payment plan. If you have children, be sure to budget accordingly. The court will take all your factors into consideration when approving or denying your plan. Ideally, you should get a bankruptcy attorney to help you determine the best possible repayment plan that works towards not only paying your creditors and giving you debt relief but allowing you to maintain a solid quality of life.
Am I Eligible for Chapter 13 Bankruptcy?
Just like Chapter 7 bankruptcy, Chapter 13 bankruptcy requires certain criteria to be met. You must have a consistent income in order to apply for Chapter 13 bankruptcy. You must also not exceed a certain limit of debt. If you owe more than the maximum debt allowed for Chapter 13 bankruptcy, you may not be eligible to file for it. A bankruptcy attorney can determine if you meet the requirements to file for bankruptcy and talk to you about how you should move forward towards debt relief.
Can a Chapter 13 Attorney Help Me With a Bankruptcy Plan?
Filing for bankruptcy can be an intimidating challenge. It’s completely natural to feel overwhelmed by the process. Your future may seem unclear when preparing to file for Chapter 13 bankruptcy but a proper bankruptcy lawyer by your side can help you clear a path towards financial freedom. Don’t head to bankruptcy court alone. Israel & Gerity, PLLC can provide you with hospitable service and sage advice that can help you go through the Chapter 13 bankruptcy process.
Spend less time worrying about your future and more time paving it with the help of a trusted bankruptcy lawyer from Israel & Gerity, PLLC. For a free consultation about your Chapter 13 bankruptcy case, contact Israel & Gerity, PLLC at 602-274-4400.