Chapter 13 Bankruptcy Attorneys Northern Arizona


A chapter 13 bankruptcy can also be referred to as a wage earner's program. It allows people with regular earnings to formulate a plan to pay back any a part of the money they owe. Under this chapter, borrowers suggest a repayment schedule for making repayments to lenders over 3 to 5 years. When the debtor's present regular monthly earnings are under the applicable state average, the program is going to be for 3 years except in cases where the court grants an extended period "for cause." (1) In the event the debtor's present regular monthly salary is higher than the applicable state average, the program usually has to be for 5 years. In no circumstance could a plan give repayments over a length in excess of five years.

Chapter 13 offers people a number of benefits over liquidation within chapter 7 bankruptcy. Possibly most of all, chapter 13 bankruptcy provides people a chance to help save their houses from property foreclosure. By filing under this section, people can halt property foreclosure actions and could remedy past due home loan installments over time. Nonetheless, they have to continue to make all home loan payments that come due throughout the chapter 13 bankruptcy plan on time. An additional benefit of chapter 13 bankruptcy would be that it enables people to reschedule collateralized financial obligations (apart from a home loan for his or her main home) and lengthen them over the life span of your chapter 13 program. This process may possibly reduce the instalments. Chapter 13 Bankruptcy also offers a unique preventative measure that safeguards organizations who're responsible with the borrower on "buyer financial obligations." This preventative measure may possibly safeguard co-signers. Lastly, chapter 13 bankruptcy functions just like a loan consolidation to which the person makes all the program repayments to a chapter 13 bankruptcy trustee who then redirects repayments to lenders. The consumers have no one on one contact with lenders while under chapter 13 bankruptcy protection.

Any person, even when self-employed or working an unincorporated company, is qualified to receive chapter 13 bankruptcy relief so long as the individuals unprotected financial obligations are under $383,175 and secured bad debts are under $1,149,525. These sums are modified regularly to mirror adjustments to the consumer price index. A company or joint venture might not be qualified for a chapter 13 bankruptcy.

An individual can't file within chapter 13 or another chapter if, throughout the previous 180 days, an earlier personal bankruptcy petition was dismissed because of the debtor's willful inability to show up before the courtroom or adhere to instructions of the courtroom or was under your own accord terminated following creditors that sought alleviation from the personal bankruptcy courtroom to recuperate property where they carry liens.

If you think you might qualify for filing a chapter 13 bankruptcy in Northern Arizona, contact experienced chapter 13 Flagstaff bankruptcy lawyers today for a free consultation.