If you’re seeking debt relief and are looking for a solution that allows you to retain your assets, then a Lerner and Rowe Law Group Chapter 13 bankruptcy attorney can help you. This type of bankruptcy is considered by many to be more complicated than Chapter 7.
However, our lawyers have the experience and knowledge to make this complex process a smooth experience for you. If you’re considering Chapter 13 bankruptcy, then read on for pertinent information and contact us for a free consultation.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a form of bankruptcy that allows people to restructure their debt. The process typically gives a debtor three to five years to pay back a portion of the money they owe to creditors. The chief difference between this form of bankruptcy and Chapter 7 is that the former is considered a reorganization, while the latter is considered a liquidation. This means that the person filing will be permitted to keep his or her secured assets, such as their home or car.
In Chapter 13 bankruptcy, the debtor commits to a court-approved payment plan that requires them to make scheduled payments on part of their debt. After successfully completing these payments, the remaining debt is discharged. Unlike Chapter 7, where nonexempt assets are liquidated in order to pay creditors, individuals are allowed to keep assets in Chapter 13.
Benefits of Chapter 13 Bankruptcy
Filing Chapter 13 bankruptcy offers debt relief and can put an end to annoying calls from debt collectors. Additionally, it can prevent a home foreclosure and make up for delinquent car or mortgage payments. People who are able to manage Chapter 13 over Chapter 7 often do so in order to keep valuable assets while eliminating debt.
There are many requirements and exceptions with this type of bankruptcy. A skilled Chapter 13 bankruptcy attorney, like those at Lerner and Rowe Law Group, will be able to help you find a manageable repayment plan and ensure that you keep as many of your assets as possible.
Debts That Can Be Discharged in Chapter 13
The following are some of the debts that can be discharged in a Chapter 13 bankruptcy:
- Credit card debt
- Medical bills
- Car loans
- Personal loans
- Title loans
- Utility bills
- Most lawsuit judgments
- Payday loans
- Car repossession deficiency balance
Debts That Cannot Be Discharged in Chapter 13
The following debts cannot be discharged in a Chapter 13 bankruptcy:
- Child support
- Unpaid taxes
- Student loans
- Secured liens
- Damages caused by a debtor’s DUI
- Restitution for criminal activity
- Fraud-related debt
A Lerner and Rowe Law Group Chapter 13 bankruptcy attorney can optimize a repayment plan for your specific needs. Our team will work with you in order to eliminate the most debt possible in the easiest way possible, while allowing you to maintain as many of your assets as possible.
Requirements for Chapter 13 Bankruptcy
Since this type of bankruptcy is a reorganization of debt that does not require asset liquidation, the debtor must meet certain requirements. They must show a steady income that illustrates the ability to comply with a repayment plan. The income can be from employment, pension, Social Security, disability or unemployment payments, and more.
Chapter 13 bankruptcy will stay on your credit report for seven years, though you may see improvements in your credit score as soon as the first year.
Contact a Chapter 13 Bankruptcy Attorney
Filing for any type or bankruptcy can be a stressful undertaking and there are many factors to consider. A Lerner and Rowe Law Group Chapter 13 bankruptcy attorney will listen to your situation with compassion. Our highly skilled bankruptcy lawyers have a thorough understanding of federal Bankruptcy and Arizona law and will work with you diligently in order to find out if this is the best solution for your financial situation.
The team at Lerner and Rowe Law Group is available Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. You can also contact us 24/7 by phone at 602-667-7777 , through our convenient contact form, or via LiveChat. Don’t let debt overwhelm you. Contact us today to find the right debt relief solution for you.