Sound Legal Guidance on Filing Chapter 13 Bankruptcy
Chapter 13 bankruptcy is very different from Chapter 7, but it is the best option for people in certain situations. To file Chapter 13 bankruptcy, you will work with your attorney to develop a debt repayment plan lasting three-to-five years, and then make monthly payments based on your income and expenses to an official of the court called a trustee.
If you think Chapter 13 may be right for you, it is essential to contact a qualified lawyer who will explain your legal obligations and work to protect your interests. We will meet with you in our Phoenix office, in our North Scottsdale office or in a meeting location throughout the state to help you determine whether a Chapter 13 proceeding will allow you proper debt relief and still permit you to retain your most valuable assets.
At the Phoenix and Scottsdale, Arizona, Law Offices of Gukeisen Law Group, P.C., we take pride in our ability to help our clients make sound, informed decisions.
Debt Relief for People with Regular Income
Chapter 13 does often provide a discharge of some portion of your debts and, like a Chapter 7 bankruptcy, it offers solid legal protection from creditor harassment and actions against you, in the form of an automatic stay. In many cases, the filer ultimately pays a relatively small percentage of total credit card debt, for example.
In all situations, we proceed with caution and try to give you all the information you need about what you are signing up for. Chapter 13 bankruptcy works only for people who can maintain a regular, dependable source of income.
A Solution for People Striving to Protect Assets and Catch Up
The most common reasons you might file Chapter 13, rather than Chapter 7, include:
- You have fallen behind on mortgage payments and want to save your home from foreclosure or protect other valuable assets you would lose in a Chapter 7
- Your income is too high for you to qualify for a full discharge of unsecured debts, but you cannot continue to service all those debts a common dilemma in these challenging economic times
- Your own moral principles lead you to prefer repaying as much debt as possible, but you need time and legal protection to do so
- You need time to pay certain debts that cannot be discharged, such as recently incurred tax debts, student loans, or back child support
Who Can File Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is not for everyone. In order to qualify, a debtor must:
- Have a regular source of income from which to make pre-determined payments to the bankruptcy trustee for the benefit of creditors
- Have enough disposable income to make regular payments to the trustee after covering current necessary living expense; and
- Fall within pre-set limits for secured and unsecured debts. The limits are updated periodically, and our firm can tell you the exact current limits.
For those who do not qualify for Chapter 13 bankruptcy, filing bankruptcy may still be an option, this time in the form of Chapter 7.
To talk with a proven, caring lawyer about your specific situation, please contact our law offices today.
