Bankruptcy Attorney - Chapter 13

Our bankruptcy lawyers in Mesa, Arizona can explain and help you decide if filing bankruptcy under chapter 13 is best for you. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter of bankruptcy, debtors propose a repayment plan to make monthly payments to creditors over three to five years.

A Chapter 13 bankruptcy can:

• Stop Foreclosure
• Stop Repossession
• Negotiate Unsecured Debts
• Stop Garnishments
• Stop Harassing Phone Calls
• Stop Lawsuits
• Protect Assets
• Reaffirm Secured Loans

Frequently Asked Questions about bankruptcy under a Chapter 13 Plan

When is filing bankruptcy under chapter 13 preferable to filing bankruptcy under a chapter 7?

Chapter 13 is usually preferable for a person who

• wishes to repay some of his or her unsecured debts, and has the income with which to do so within a reasonable time.
• has valuable nonexempt property or has valuable exempt property securing the debts, either of which would be lost in a chapter 7 case.
• is not eligible under means testing to maintain a chapter 7 case.
• is not eligible for a chapter 7 discharge.
• has one or more substantial debts that are dischargeable under chapter 13 bankruptcy but not under chapter 7 bankruptcy.
• has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.
• has filed bankruptcy and obtained a discharge with the prior 8 years.

How does bankruptcy under a chapter 13 plan differ from a private debt consolidation service?

In a chapter 13 bankruptcy the court can provide relief to the debtor that a private debt consolidation service cannot provide.

For example, the court has the authority to prohibit creditors from attaching or foreclosing on the debtor’s property, to force unsecured creditors to accept a chapter 13 plan that pays only a portion of their claims, and to discharge a debtor from unpaid portions of debts.

Private debt consolidation services have none of these powers.

Who is eligible to file bankruptcy under chapter 13?

• Any individual (i.e., natural person) is eligible to file a chapter 13 case if he or she
• resides in, does business in, or owns property in the United States,
• has regular income,
• has unsecured debts of less than $360,475,
• has secured debts of less than $1,081,400,
• is not a stockbroker or a commodity broker,
• has not intentionally dismissed another bankruptcy case within the last 180 days,
• has received a briefing from an approved credit counseling agency within the last 180 days.

Corporations, partnerships, limited liability companies, and other business entities are not eligible to file bankruptcy under chapter 13, but may be eligible to file bankruptcy under chapter 11 which is a reorganization plan instead.

What is the role of a bankruptcy attorney in a chapter 13 case, and why do I need one?

The process of a filing bankruptcy under chapter 13 can be very complicated and require a commitment of three (3) to five (5) years once the bankruptcy court has approved the debtor's re-payment plan.

An Arizona bankruptcy attorney knows the law and can help you avoid or fight additional litigation during the bankruptcy process. An attorney will do more than fill out paperwork. Discussing your options with our bankruptcy lawyers can also relieve the emotional and economic stress that so many feel before and during the bankruptcy process.

There are many more questions to be answered when deciding if an Arizona chapter 13 bankruptcy is the right fit for your personal financial circumstances.

Do not put it off any longer. Contact us for your FREE Arizona chapter 13 bankruptcy consultation, let us help put you on the road to your financial recovery and peace of mind today!

We are a debt relief agency.
We help people file for debt relief under the United States bankruptcy code.