When you see no way of paying debt, you have the option of Chapter 13 in Casa Grande AZ. All bankruptcy cases begin by filing a petition with the local court. On this petition, you must list all sources of income. The courts need this list to determine what kind of bankruptcy you can file. There are several kinds of bankruptcy. Many debtors attempt to file Chapter 7 bankruptcy first because they get discharged in less time and they no longer owe creditors. However, under the new laws, debtors who earn enough income to pay creditors cannot file Chapter 7.
There are many benefits to filing Chapter 13 bankruptcy over Chapter 7. Chapter 13 bankruptcy is a reconstruction plan. It is an opportunity to pay back debt without seriously impacting your credit. The courts help devise a payment plan that fits you budget. You typically get three to five years to pay off debts. Filing Chapter 7 bankruptcy can impact your credit for several years. It also requires the debtor to give the courts non-exempt assets like valuable collections or second houses. The assets are sold by a trustee to pay debts. Chapter 13 does not require the sell of assets. If you own a business, Chapter 13 lets you operate as usual with no interruption. Business that file Chapter 7 have to cease operation for a time period which can impact them negatively. Chapter 13 can help you stop foreclosure and avoid losing your home even if the process has been started. You will be allowed to catch up on mortgages at lower interest rates. You will not be in contact with creditors under the new repayment plan. You make one payment to the trustee which takes care of all creditors. Chapter 13 is useful if you have cosigners on loans. Cosigners could still be liable for the debt even after your discharge.
Chapter 13 bankruptcy is for debtors with sufficient income to pay creditors. If your financial situation changes, you can rearrange payment plans. Chapter 13 can help you pay off debt without seriously impacting credit. It proves you are trying to be responsible. Befor efiling bankuptcy, it would be wise to discuss it with a lawyer like Asheton B. Call.
