Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is commonly thought of as a reorganization plan for debtors with regular income. It involves a Proposed Plan to repay some of your outstanding debt over a period of 3 to 5 years. If you complete the plan, any debts not paid by plan payments would be forgiven similar to a Chapter 7 Discharge. The amount of your plan payments will depend on your individual circumstances. Call our Phoenix Bankruptcy Attorneys at 602-956-1161 for a free consultation. Our rates are reasonable and are fee is always a flat rate.

For most, the reasons to file a Chapter 13 rather then a Chapter 7 include you want to save your House from Foreclosure or your Car from Repossession. Other reasons include you might have some nonexempt property you do not want to surrender or sell, you already received a Chapter 7 Discharge in the previous 8 years, you make too much money to qualify for Chapter 7 or you want to pay back some of your debt for personal or moral reasons.

One of the greatest powers of a Chapter 13 is it stops a foreclosure sale of your family’s home immediately upon filing. The Chapter 13 will allow you time to catch up on the missed mortgage payments and keep your house. Similarly, you can save your car from repossession even if you have missed several payments.

One of the greatest advantages of a Chapter 13 Bankruptcy is that it stops interest from continuing to accumulate on unsecured debt such as credit card debt. Often individuals have significant credit card debt. With interest rates varying from 20-30% there may be no way to every pay off all the credit card debt. A Chapter 13 immediately stops the interest and finance charges and you get the chance to eliminate the principle balance. Outside of bankruptcy, $40,000 of credit card debt at 20-30% APR will easily turn into $80,000-100,000 of debt in just a few years.

After completing a Chapter 13 Bankruptcy you will be 100% debt free!

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