Bankruptcy is a tool that can provide significant relief for individuals and families with substantial debt who need to reorganize their financial life. It may help to eliminate unsecured debts (like medical and credit card bills) and get a fresh financial start without the burden of unpaid payments.
The #1 Chapter 13 Bankruptcy Attorney in Phoenix Arizona can help you determine whether filing for bankruptcy is the right option for your financial situation. They can also help you prepare a comprehensive plan that includes payment of all your debts and a repayment schedule that lasts three to five years.
Depending on your circumstances, you may be able to keep some property and discharge certain debts. You should be aware that if you file for bankruptcy, your assets are at risk of liquidation or foreclosure. During the bankruptcy process, your creditors can be contacted about your case.
If you are considering filing for bankruptcy, you should work with a reputable and experienced Phoenix bankruptcy lawyer who will guide you through the entire process and ensure that your rights are protected. You should also be aware that bankruptcy can have a serious impact on your credit score.
Chapter 13 Bankruptcy – What it is and How It Works
You will be required to submit a budget and proposed repayment plan along with other documentation to your Phoenix bankruptcy attorney before the court. Your attorney will review your income and expenses to ensure that you can afford the monthly payments needed to pay all of your debts.
Once the bankruptcy plan is approved, you will have to continue making payments under the approved plan for the duration of your plan. Once you have completed your plan, any unsecured debts that are not included in your plan will be discharged.
The length of your Chapter 13 plan will depend on a variety of factors. The court will typically approve a time period of three or five years to repay your debts. However, if you have significant unsecured debts that are not covered by your plan, the court may allow you to pay your debts over a longer period of time.
In addition, your Phoenix bankruptcy attorney can help you evaluate your debt and recommend changes that will make it more manageable. For example, they may suggest that you consolidate your credit cards or make a lower payment on your car loan.
A Phoenix bankruptcy attorney can also advise you on the types of debts that are a good fit for bankruptcy and how to protect your assets in a Chapter 13 filing. They can also assist you in determining whether or not it is in your best interest to pursue a debt consolidation or debt management plan through a credit counseling agency before filing for bankruptcy.
What Are the Costs of Filing for Bankruptcy?
The cost of filing for bankruptcy depends on a number of factors, including the type of case you have filed and the fees associated with the legal services. It will also vary based on the number of creditors that you wish to include in your bankruptcy.
