A Chapter 13 Bankruptcy Attorney is the best option for individuals who are facing serious financial difficulties. It is a type of bankruptcy that allows debtors to reorganize their debt over a period of time (usually three to five years) and repay some of their creditors through an approved payment plan.
The bankruptcy process involves several steps and if not followed correctly can lead to your case being dismissed or your debts not covered. It is important to hire an experienced bankruptcy attorney to guide you through the process.
Before filing, complete pre-filing credit counseling through a nonprofit credit counseling agency. This will help you understand your situation and develop a repayment plan that fits your budget.
Once you have the necessary information, file the bankruptcy petition and other paperwork with the court. You will also need to complete a detailed schedule of assets and income.
If you owe a significant amount of money on secured debt, such as your mortgage or car loan, it may be possible to reduce or eliminate these payments through a Chapter 13 bankruptcy plan. Your bankruptcy attorney can assist you in developing a repayment plan that will satisfy both the secured and unsecured portion of your debts.
Your repayment plan will include a fixed amount of money that must be paid to the trustee each month. This amount will be based on the calculation of your income, assets and monthly expenses.
A portion of this payment will be used to pay your trustee and other administrative costs. The remainder will be used to pay your unsecured creditors a certain percentage of the total debt.
The percentage of your unsecured creditors you pay will depend on the size of your debts and what they are classified as. Some creditors are considered unsecured debts and can be paid a percentage of their value under the bankruptcy plan, while others are considered priority debts and must be paid in full under the plan.
Once your chapter 13 plan has been filed with the court, it will undergo a confirmation hearing. This is where the creditors and the bankruptcy trustee can object to the plan for a number of reasons.
If no objection is made, your plan will be confirmed and the bankruptcy court will then allow you to proceed with the Chapter 13. This is how you get out from under crippling debts and regain control of your finances.
At Dodge & Vega PLC, our Chapter 13 Bankruptcy Attorneys will listen to your situation with compassion and offer you a realistic assessment of your case. We have a thorough understanding of Arizona law and federal bankruptcy law and will work diligently to ensure you receive the most effective result.
Our lawyers have extensive experience in representing clients in Chapter 13, the most common type of bankruptcy in America. They have a comprehensive knowledge of Arizona bankruptcy law and can help you navigate the difficult and complex nature of the process.