If you are trying to pay debts that you cannot afford to pay, our Surprise bankruptcy attorneys are here to help you explore bankruptcy options. Through a bankruptcy filing, you can get rid of debts including, but not limited to:
- Personal loans
- Credit card bills
- Medical debts
- Some old income tax debts
- Old utility company payments
- Payments owed for old lease and rent agreements
Some debts are not dischargeable (forgivable) in bankruptcy. Student loans, child support payments, alimony, and most tax or government debts are not eligible for a discharge. However, you could spread these debts out over a five-year bankruptcy repayment plan. When you complete your plan, you could be debt-free except for your mortgage payment and student loan payment.
If you meet the income qualifications for a Chapter 7 bankruptcy case, do not have high-value assets, and your debts are all eligible for a bankruptcy discharge, you could be debt-free in as little as four to six months. In the case that a loan is causing your financial stress and debt, contact a Surprise loan modification attorney to work towards your legal goals.
Talk to our Surprise bankruptcy lawyers during a free consultation to learn more about Chapter 13 and Chapter 7 bankruptcy cases.
Chapter 13 vs. Chapter 7 Bankruptcy in Surprise, AZ
Deciding between filing a Chapter 7 or a Chapter 13 bankruptcy case can be challenging. A Surprise bankruptcy lawyer can help you weigh the pros and cons of filing under each chapter of bankruptcy to help you decide if bankruptcy is right for you.
Chapter 7 Bankruptcy in Surprise
The Chapter 7 bankruptcy process is reserved for individuals who cannot afford to repay their debts. They do not have any money left over at the end of each month to pay debts after they pay their ordinary living expenses.
Income requirements for a Chapter 7 case are based on your household income for the six months before filing Chapter 7. If you earn less income than the median income for Arizona, you might qualify for a bankruptcy discharge in Chapter 7.
However, Chapter 7 is a liquidation bankruptcy. If you own property that has equity above the Arizona bankruptcy exemptions, the Chapter 7 trustee could sell the property at a bankruptcy auction. Our Surprise Chapter 7 bankruptcy lawyers carefully review your case before you file for bankruptcy relief. Most Chapter 7 debtors in Arizona keep all their property.
Chapter 13 Bankruptcy in Surprise
The Chapter 13 bankruptcy process involves proposing a repayment plan. You are required to pay a portion of the amount you owe to your unsecured creditors based on your income, expenses, debts, and equity in property. Our Surprise Chapter 13 bankruptcy attorneys work diligently to keep your bankruptcy plan payments as low as allowed by law.
Chapter 13 bankruptcy has advantages that make it a better option for some individuals. You can pay past-due mortgage payments through your Chapter 13 plan to prevent foreclosure. You can also spread out car loan payments, domestic support payments, and tax debts over a five-year plan. In some cases, you can lower your car payments too.
Contact Our Surprise Bankruptcy Attorneys to Discuss Filing Bankruptcy To Get Out of Debt
Bankruptcy relief is an affordable way for many people to get rid of debts that they cannot pay. Bankruptcy gives you a fresh start to recover after a financial hardship. It can also protect your property from being seized by creditors to repay debts and protect your income from being garnished to repay debts.
Contact the Arizona bankruptcy lawyers at 602 Law Group by calling 602-562-5000 to request a free consultation with a Surprise bankruptcy lawyer. You may be surprised to learn how affordable and easy it is to file a bankruptcy case in Surprise.