Do you have questions about filing bankruptcy in Chandler? Are you wondering if bankruptcy is the best way for you to resolve your debt problems? If so, our Chandler bankruptcy lawyers can help.
During a free consultation, we explain the bankruptcy process and answer your questions about bankruptcy. We analyze your financial situation and advise you whether a Chapter 7 or Chapter 13 bankruptcy case can help you get out of debt. Your first step is to call our office to schedule your free case review.
Is Chapter 7 Bankruptcy Right for Me?
Most people want to file Chapter 7 because most Arizona Chapter 7 cases are no-asset cases. In a no-asset Chapter 7 case, you get to keep all your property and get rid of most or all of your debts in about six months. That sounds good to most people. Chapter 7 is faster and less expensive than a Chapter 13 case.
However, the Chapter 7 bankruptcy process is a liquidation bankruptcy. You could risk losing some of your assets in a Chapter 7 case. While this is not common, it is a consideration that must be carefully addressed. Our Chandler Chapter 7 lawyers review your property to determine if the bankruptcy exemptions protect the equity in your property. If not, the Chapter 7 trustee could liquidate your property. If you’re interested in exploring other bankruptcy alternatives to your debt problems, a Chandler debt problems attorney could help work towards finding your best solution.
Additionally, Chapter 7 has income requirements. If your income is too high, you do not qualify for debt forgiveness in Chapter 7.
Chapter 7 may be the best bankruptcy chapter for you. However, it is best to talk to our attorneys before you make that decision to avoid any problems or surprises.
Can I File a Chapter 13 Bankruptcy Case?
If you have a reliable source of income, you can qualify to file under Chapter 13. The Chapter 13 process is a court-supervised reorganization plan. You restructure your debts through a Chapter 13 repayment plan. A typical Chapter 13 plan catches up your mortgage payments, pays your car payments, pays tax debts in full, and pays general unsecured debts a percentage of what you owe to each creditor.
Because a Chapter 13 case is a repayment plan, you can use it to stop foreclosures and repossessions. In some cases, debtors can lower their monthly car payments and pay less than they owe to cancel the secured lien. If you owe more to your first mortgage company than your home is worth, you might be able to get rid of your second mortgage in a Chapter 13 case.
Chapter 13 cases have many benefits. However, you are in a Chapter 13 plan for 60 months. Some individuals with larger incomes may qualify for a three-year plan. During that time, you cannot borrow money, incur debt, or sell property without court approval. Always talk to an experienced Chandler Chapter 13 bankruptcy attorney before deciding to file a Chapter 13 case.
Chapter 7 vs. Chapter 13 Cases
Deciding between Chapter 7 and Chapter 13 can be difficult without the assistance of a Chandler bankruptcy lawyer. Once you file a Chapter 7 bankruptcy case, you may not be able to dismiss the case voluntarily. If a Chapter 7 trustee decides that you have property the trustee can liquidate, the court may not grant your request to dismiss the case.
While you can voluntarily dismiss a Chapter 13 case, it could cause problems if you decide to file bankruptcy again soon after the dismissal. Also, dismissing the case could result in a mortgage lender or car loan company seizing your property.
Instead of making a mistake by filing bankruptcy without an attorney, talk to our Chandler bankruptcy lawyers. The consultation is free, so you have nothing to lose.