If you’re struggling with debt and need to file for bankruptcy, it’s important to choose the best Chapter 13 Bankruptcy Attorney in Phoenix Arizona. This type of case allows you to keep your property while paying off your debts over a period of three to five years. However, it’s important to know that if you fail to make your payments on time, your property may be at risk of being taken by a creditor.
There are many different types of debt that can be reorganized in a Chapter 13 bankruptcy. This can include student loans, medical bills, credit card balances and more. In addition to reorganizing these debts, you can also take advantage of various other bankruptcy options that can help with your specific financial situation.
A debtor’s income is taken into consideration in order to determine if he or she can file for bankruptcy under Chapter 13. This includes both the debtor’s income as well as the income of his or her spouse, if married.
This income must be sufficient to support a monthly living expense and repay creditors under the terms of the plan. Depending on the debtor’s circumstances, this means that a budget and a repayment schedule must be submitted to the court for approval.
The court will confirm your Chapter 13 plan if you pass the means test and if no objection is filed by the court or your creditors. This process can be challenging, and it’s important to have a lawyer who knows how to effectively prepare and submit your plan for confirmation.
Your creditors can object to your Chapter 13 plan for many reasons, including that they are not getting a fair or equitable payment from you under the terms of the plan. This is particularly the case with credit cards, medical bills and other unsecured debts.
Cramdowns
A cramdown is an important form of relief in a Chapter 13 bankruptcy. This method of reorganization allows you to pay off your debts over a period of time at a lower rate than the original loan amount. This could be helpful if you have a large mortgage or other secured debt that is unmanageable in your current financial condition.
This type of bankruptcy is especially helpful to those who have fallen behind on their mortgage and need some time to catch up. This can allow them to catch up with the past-due amount of their mortgage while still retaining their home, and in some cases, even save their home.
If you’re considering filing for Chapter 13, contact Stephen Trezza to learn more about his firm and how they can assist you with your bankruptcy. With over 25 years of experience, he and his staff are dedicated to making sure that all clients receive a superior service.
He provides a money-back guarantee on all Chapter 7 cases and can help you understand the difference between a chapter 13 and a chapter 7. He is an expert in debt management and offers the best bankruptcy services Tucson has to offer.
