If you are struggling to make ends meet and cannot pay your creditors, you might want to consider filing for Chapter 13 bankruptcy. This type of bankruptcy allows you to restructure your debts and repay them over three to five years. Your attorney can help you determine whether this is the best way to deal with your financial problems and provide a repayment plan that will allow you to rebuild your credit.
Choosing the Right Bankruptcy Lawyer for You
If you need to file for bankruptcy in Phoenix, you should choose an attorney with experience and knowledge of federal bankruptcy law. Your lawyer should also have an understanding of state law and your particular situation. FOr more details and guidance, check out www.phoenixfamilylawyers.net/chapter-13-bankruptcy-attorney/.
What Are the Eligibility Requirements for Chapter 13?
To qualify for chapter 13, you must have a regular income, be able to pay your debts as part of the Chapter 13 bankruptcy plan and have no assets that would be taken by the court in order to pay your creditors. In addition, you must have a valid debtor education course certificate and have enough disposable income to afford your chapter 13 payments.
Your Income, Expenses, and Debt: The first step in your bankruptcy process is to file your petition with the court. Then, you and your attorney can work with the bankruptcy trustee to come up with a debt repayment plan that is acceptable to your creditors.
During this process, you may have to submit an income and expense statement. This will give the court an idea of your monthly living expenses and allow you to request a lower or even no payment if you are going through a tough financial period.
You might be able to eliminate a substantial amount of your unsecured debts in Chapter 13. For example, if you owe $15,000 on a car that is now worth only $10,000, you could ask the lender to only charge you for the original price of the vehicle through the bankruptcy. This is called a “catch up” and would likely be a good strategy to consider for those who have been behind on their mortgage and other secured debts.
If you are considering Chapter 13 bankruptcy, contact a Phoenix lawyer today to schedule an appointment for a consultation. These meetings are free and will give you a chance to learn more about the options available to you.
What Types of Debt Can I Eliminate?
In chapter 13 bankruptcy, you can discharge most types of unsecured debts. This includes credit card bills, medical bills, personal loans, and other types of debts.
Some types of debts can’t be discharged in chapter 13: alimony, child support, recent taxes, and some student loans.
The best Chapter 13 Bankruptcy Attorney in Phoenix is someone who will take the time to listen to your unique situation and advise you on which bankruptcy option is the right one for you. A qualified bankruptcy lawyer will be able to find a solution that works for you and your family and will work to protect your rights.