For individuals and families struggling with overwhelming debt, creditor harassment and the threat of foreclosure or repossession, a Chapter 13 bankruptcy may be an ideal solution. This option provides the chance to keep nonexempt assets while working toward paying off your priority debts in a structured court supervised payment plan that lasts between 3 and 5 years.
What Qualifies You for a Chapter 13 Bankruptcy?
If you have a regular income and can commit to a repayment plan lasting 3 to 5 years, then you are probably eligible for Chapter 13 bankruptcy. However, your eligibility is not guaranteed and there are other things to consider.
You need to understand that a Chapter 13 bankruptcy does not just wipe out your unsecured debt, it will also affect your credit score for at least 10 years. It is important to work with a knowledgeable attorney that understands the laws governing the Bankruptcy Code.
A Chapter 13 case can be filed by a debtor who is behind on their mortgage payments or has been unable to maintain current mortgage and car loan payments. This is called a “catch up” or “traditional” Chapter 13 bankruptcy.
The filing of a Chapter 13 case immediately stops all creditor activity including upcoming foreclosure sales and auctions. It also gives you and your lawyer the chance to craft a Chapter 13 plan that will catch up on your mortgage arrears over a five year period, while simultaneously curing other secured debt, like credit cards, tax debt or student loans.
Generally speaking, the only way you can avoid foreclosure is by completing a Chapter 13 payment plan and preserving your home, vehicle or other property in your bankruptcy. For that reason, it is essential that you contact a Chapter 13 Bankruptcy Attorney in Phoenix Arizona today for your free consultation.
What Makes a Good Chapter 13 Bankruptcy Attorney?
Whether you have filed a Chapter 7 or are considering doing so, it is essential to hire an experienced, knowledgeable and aggressive bankruptcy attorney. A bad bankruptcy attorney can hurt your chances of getting a discharge and negatively impact your financial future.
A competent Chapter 13 Bankruptcy Attorney in Phoenix will help you through all the necessary steps to complete your Chapter 13 bankruptcy case successfully. They will explain the process to you, advise you of your rights and help you navigate through the various issues that are unique to each individual client’s case.
Your attorney will prepare all the required documentation for your case, including a bankruptcy schedules and Chapter 13 plan. This paperwork needs to be filed with the court within two weeks unless extended by motion, and must be submitted to the Chapter 13 trustee.
Once all of the required documents are completed and filed, a hearing date is set to confirm your Chapter 13 plan and a creditors meeting will be scheduled for you and your attorney to meet with the Chapter 13 trustee and all your creditors who wish to attend. During this meeting you will be able to ask questions and discuss your bankruptcy with the trustee and your creditors.