CHAPTER 13 BANKRUPTCY ATTORNEY
Las Vegas Chapter 13 Lawyer
Chapter 13 Bankruptcy
Phoenix Chapter 13 Bankruptcy Attorneys
When you are facing bankruptcy, there are sure to be questions. Filing a Chapter 13 Bankruptcy in Phoenix is a major decision. However, a Ch 13 filing can be a beneficial debt relief tool. In a chapter 13 you can save your home from foreclosure, make up back mortgage payments, and it is all within a repayment plan that is curtailed for you to afford.
Additionally, declaring Chapter 13 bankruptcy in Phoenix can assist you in reducing or eliminating your debt, including: medical debt, utility payments, unsecured debt, credit card debt, and various types of loans. Plus, you can catch up on back tax debt, child support arrearages, and mortgage delinquencies.
Automatic Stay in Chapter 13 Bankruptcy
Also, an Automatic Stay provides protection from collections. Once you file for Chapter 13 protection in Phoenix, Arizona, an automatic stay will be go into place and your creditors must stop all collection processes against you. The Automatic Stay is a very powerful tool. Not only does it stop creditors and collection action, it can also stop a garnishment, save the family home, and allow you to protect your property from being repossessed.
Advantages and Disadvantages of filing Chapter 13 Bankruptcy
-Your debts will be reorganized into one convenient payment plan; a Chapter 7 requires no repayment of debts
-A Chapter 13 lasts 3-5 years, while a Chapter 7 only lasts 3-5 months. Depending on your situation, you may want your bankruptcy completed as soon as possible, or you might want the protections provided by the Automatic Stay for as long as possible.
-A Chapter 13 remains on your credit for 7 years after filing; a Chapter 7 remains on your credit for 10 years.
-If you are behind on your car or house payments, a Chapter 13 will spread out the past-due balance over 3-5 years; you will only have 3-5 months to catch up on your payments in a Chapter 7.
-You can keep your property in a Chapter 13; you can only keep property that falls under your state’s exemptions in a Chapter 7.
What Chapter 13 Can Do that Chapter 7 Can’t
Chapter 13 reorganizes any arrearages on your mortgage, car loan, income taxes, child support, and alimony over the course of your plan, while you would have to settle those past-due balances separately in a Chapter 7. You would also have to satisfy some of those debts before your Chapter 7 is completed to avoid foreclosure, repossession, etc.
If you have co-signers on financed properties such as your vehicle, surrendering that vehicle in Chapter 7 or losing it to repossession can negatively impact your cosigner. Chapter 13 protects your cosigners from negative credit reporting and collection attempts by your creditors.
Chapter 13 provides the unique opportunity of lien-stripping. If you owe more on your home than what it is worth, you can discharge secondary mortgages in your bankruptcy. You will not have this option in a Chapter 7.
Chapter 13 Eligibility
FREQUENTLY ASKED QUESTIONS ABOUT CHAPTER 13
Chapter 13 is a chapter of bankruptcy that allows the filer to reorganize some or all of their debts into a payment plan specifically calculated to work within their budget. Your car payment, arrearages, and some or all of your unsecured debt payments will be included in your plan. In Tucson, your mortgage payment will also be included. While your bankruptcy is activities, you can’t be charged penalties and interest on your debts. Your creditors also will be prohibited from garnishing your wages, repossessing your property, etc. due to the Automatic Stay of Protection. You will no longer be liable for dischargeable debts when your case is discharged.
The trustee is an attorney appointed to your case by the bankruptcy court. Your trustee will oversee your case, reviewing documents pertaining to your case and distributing plan payments amongst your creditors.
The filing fee for a Chapter 13 Bankruptcy is $310. You will need to pay this fee, and a portion of your attorney’s fees, up front before your case is filed. Your attorney may be able to have flexibility with how much of your legal fees you must pay up front, and work the remainder into your payment plan. The more you pay up front, the less your monthly payments will be.
A discharge occurs when you have completed the final payment in your payment plan. Some remaining debt balances may be wiped out upon discharge, if they qualify. When your case is discharged, the Automatic Stay of Protection ends. Collection on any debts that haven’t been discharged may continue. Collection on debts that were discharged in your bankruptcy will not resume.
The duration of your payment plan will depend on where you fall on your state’s median income line. That amount will be determined by how many members there are in your family and if your spouse is also employed. If you make less than the state median, your plan will be 3 years. If you make more, your plan will last for 5 years. You will need to petition the court to modify your plan if you experience any major life changes during your plan.
A conduit payment is when a bankruptcy filer includes their past-due mortgage in their bankruptcy pln. Making conduit payments through bankruptcy allows the filer to avoid penalties and disputes over payment. The lender will be prevented by the Automatic Stay from foreclosing on the home in question.