Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as a wage earner's bankruptcy, is a type of bankruptcy that allows individuals with regular income to develop a plan to repay all or part of their debts. It is typically used by individuals who have a significant amount of debt, but still have a steady income and the ability to make regular payments.
Under Chapter 13 bankruptcy, the debtor proposes a repayment plan to their creditors, typically lasting three to five years. The plan must be approved by the bankruptcy court and must meet certain requirements set forth in the federal bankruptcy code. In Arizona, the bankruptcy process for Chapter 13 bankruptcy is governed by both federal and state laws, including the Bankruptcy Code (Title 11 of the United States Code) and the Arizona Rules of Bankruptcy Procedure.
Chapter 13 bankruptcy is a type of bankruptcy that allows individuals and businesses to reorganize their debt and pay it off over time. It is often referred to as a "wage earner's bankruptcy" because it is typically used by individuals who have a regular income and are seeking to protect their assets, such as a home or car, from being sold to pay off creditors.
Understanding How a Bankruptcy Lawyer Can Help
Are you struggling with overwhelming debt and looking for a way to get back on your feet financially? Chapter 13 bankruptcy might be the solution you need to regain control of your finances and get a fresh start. This article will provide a comprehensive overview of Chapter 13 bankruptcy, including its benefits, eligibility requirements, and how a bankruptcy lawyer can help.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a type of bankruptcy that allows individuals with regular income to reorganize their debts and create a repayment plan that lasts three to five years. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 bankruptcy enables individuals to keep their property and pay off their debts over time.
What Are the Benefits of Filing for Chapter 13 Bankruptcy?
There are several benefits to filing for Chapter 13 bankruptcy, including:
- Protecting your property: Chapter 13 bankruptcy allows you to keep your property, such as your home and car, while paying off your debts over time.
- Stopping foreclosure: Filing for Chapter 13 bankruptcy can help you stop foreclosure and catch up on missed mortgage payments.
- Stopping creditor harassment: Once you file for bankruptcy, creditors are required to stop all collection actions, including phone calls and letters.
- Creating a manageable payment plan: Chapter 13 bankruptcy enables you to create a repayment plan that fits your budget and allows you to pay off your debts over time.
- Discharging certain debts: Some debts, such as credit card debts and medical bills, can be discharged through Chapter 13 bankruptcy, meaning you are no longer responsible for paying them.
Who Is Eligible for Chapter 13 Bankruptcy?
To be eligible for Chapter 13 bankruptcy, you must meet the following requirements:
- You must have a regular income: Chapter 13 bankruptcy is designed for individuals with regular income, such as a salary or wages.
- You must have unsecured debts of less than $419,275: Unsecured debts include credit card debts and medical bills.
- You must have secured debts of less than $1,257,850: Secured debts include mortgages and car loans.
- You must complete credit counseling: Before filing for bankruptcy, you must complete credit counseling from an approved agency.
How Can a Bankruptcy Lawyer Help?
Filing for bankruptcy can be a complex and overwhelming process. A bankruptcy lawyer can help you navigate the process and ensure that your rights are protected. Some ways a bankruptcy lawyer can help include:
- Reviewing your financial situation: A bankruptcy lawyer can review your financial situation and help you determine whether Chapter 13 bankruptcy is the right solution for you.
- Helping you create a repayment plan: A bankruptcy lawyer can help you create a repayment plan that fits your budget and allows you to pay off your debts over time.
- Representing you in court: A bankruptcy lawyer can represent you in court and ensure that your rights are protected throughout the bankruptcy process.
- Negotiating with creditors: A bankruptcy lawyer can negotiate with creditors on your behalf and help you settle your debts for less than you owe.
How Can Carr Law Firm Help?
At Carr Law Firm, we understand the stress and anxiety that come with overwhelming debt. With over 25 years of legal experience, Founding Attorney Nathan E. Carr has a Master Degree in Taxation and is well-versed in bankruptcy law. We can help you navigate the Chapter 13 bankruptcy process and create a repayment plan that fits your budget. Contact us today to schedule a free consultation and learn more about how we can help you achieve financial freedom.
Get Help
Contact Carr Law Firm today to schedule a free consultation and learn more about how we can helping you achieve financial freedom through Chapter 13 bankruptcy. Our experienced bankruptcy lawyers can review your financial situation, guide you through the process, and negotiate with your creditors to help you settle your debts. We are dedicated to providing personalized and compassionate legal services to clients in Arizona, Maricopa County, and the Phoenix Metro Area. Don't let overwhelming debt control your life any longer – take the first step towards financial freedom by contacting us today.