A financial hardship can happen to anyone and leave you with a lot of debt, often through no fault of your own. Maybe you’ve lost your job and been forced to take cash advances or use credit cards to make ends meet. Perhaps you’ve been faced with a medical emergency and find yourself facing insurmountable medical debt that you’ll never be able to pay off. But hope exists. You don’t have to live under this burden forever. Don’t struggle with minimum payments, “past due” letters, calls from collection agencies or even wage garnishments while interest and penalties continue to pile up. Instead, hire a Phoenix debt restructuring lawyer from Lerner and Rowe to help you restructure your debt.
Restructuring Your Debt: Discharge All Debt – or at Least Make It Manageable
Depending on your situation, there are two ways you can restructure and take charge of your debt in 2017: Chapter 7 bankruptcy or Chapter 13 bankruptcy.
But, isn’t bankruptcy “bad”?
Not at all. Bankruptcy laws exist specifically to give you relief from debt that you could never repay on your own. It’s an opportunity to give you a fresh start.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common type of bankruptcy. Not everyone qualifies, but if your income is less than the median income for a family of your size in Arizona, you should be able to qualify.
Chapter 7 bankruptcy advantages:
- All allowable debts can be discharged, giving you a fresh, clean start.
- Any collection efforts by creditors and wage garnishments cease once your Phoenix debt restructuring law firm files the bankruptcy.
- After your bankruptcy is finished, your wages, acquired property, and other assets remain yours and can’t be taken by creditors or bankruptcy court.
- Bankruptcy procedures are generally quick, taking just 3 to 6 months to complete.
Chapter 13 Bankruptcy
If a means test determines that you don’t qualify for Chapter 7 bankruptcy, you can still file for Chapter 13 bankruptcy. Chapter 13 is different from Chapter 7 bankruptcy in that you don’t receive a discharge until after your bankruptcy completes. Instead, our Phoenix debt restructuring law firm will work with you and the court to determine a manageable repayment plan lasting 3-5 years. The monthly payments can be as low as $100.00 per month; depending on your income, expenses and the types of debt you have. All remaining debt is discharged at the conclusion of your Chapter 13 Bankruptcy with the exception of student loans, domestic support obligations, and certain tax debts.
Chapter 13 bankruptcy advantages:
- You can keep your property as long as you keep to your repayment schedule.
- Wages garnishments, collection attempts, and creditor harassment is prohibited just as is true with Chapter 7 bankruptcy.
- You can remove a second mortgage from your home.
- You can reduce the amount you owe on your vehicle.
- A Chapter 13 will bring your past due mortgage payments current and give you time to pay off tax debt.
- Most Chapter 13 Plans include your monthly vehicle payment.
- You keep your home and will not face foreclosure as long as you make your Chapter 13 Plan and mortgage payments.
- Most Chapter 13 cases repay a minimal amount to unsecured creditors.
Let Our Phoenix Debt Restructuring Law Firm Help!
Contact us today for a free initial consultation at 602-667-7777.