Chapter 13

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Arizona Bankruptcy Lawyers, Chapter 13 Attorneys Mesa AZ

Bankruptcy Lawyers Mesa provides affordable bankruptcy lawyers in Mesa AZ and neighboring towns for chapter 13 filings. Whereas, our Mesa Arizona bankruptcy lawyers are debt consolidation professionals that have the necessary skills and experience to provide our clients with structured repayment plans and a pathway to sensible financial solutions.  Plus, our AZ bankruptcy attorneys approach each case with the respect, compassion and understanding you deserve while delivering effective solutions to improve your life. Additionally, our bankruptcy lawyers in Arizona provide a free, no risk, initial consultation and answer any questions you may have.

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Bankruptcy Lawyers Arizona, Chapter 13 Overview

Chapter 13 Bankruptcy is an interest free debt repayment plan through which you consolidate your debts over a three to five-year period. Creditors cannot collect from you during the term of the plan.

student loan debtStudent Loans

Although you may not eliminate student loans in a Chapter 7 bankruptcy, you can consolidate student loan debts with your other bills in a Chapter 13, and stop a collection action against you. We can stop the collection action and garnishments related to student loan debts.

debt attorneyDebts

Debts that are generally consolidated in a Chapter 13 are mortgage arrears, balances on vehicle loans, and student loans. One important thing our attorneys want you to remember about Chapter 13 is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court, to consolidate your debts.

home foreclosure attorneyForeclosure in Mesa Arizona

Chapter 13 will stop a foreclosure any time prior to a Sheriff’s foreclosure sale, and allow you to repay your mortgage arrears. You will still be obligated to make all future payments directly to the mortgage company, but they may not proceed with the foreclosure. Call Ben, the bankruptcy lawyer Mesa residents have come to trust, today – because once the sheriff sells your home, there is nothing we can do to stop the sale.

loan cosignersCosigners

Your cosigners get protection too-in fact the same protection that you receive under Chapter 13. Chapter 13 may protect your cosigners from collection activity while you are in your repayment plan.

vehicle repossession attorneyVehicle Repossession

Our attorneys can use Chapter 13 to stop a finance company from repossessing your vehicle. The past due payments, along with the outstanding balance on the car loan, will be consolidated into the Chapter 13. The finance company cannot repossess your car, and in most cases, you will not have to make a payment directly to the finance company. In some instances, our attorneys can even get your car back if it was recently repossessed.

Call the attorneys at Bankruptcy Lawyers Mesa to learn more about Chapter 13 Bankruptcy in Mesa AZ

CHAPTER 13 BANKRUPTCY FAQs

ANSWER: A Chapter 13 is a reorganization of your debts. It will be payable over 3-5 years, depending on your income. The payment amount will be calculated using your debts and income to make sure it is realistic for your budget over the coming years. You may end up repaying all of your debts in the bankruptcy, or just a portion. A Chapter 13 also allows your to catch up on arrearages and offers the possibility of stripping secondary mortgages if you are underwater on your home.

ANSWER: The debt limits for a Chapter 13 Bankruptcy are $419,275 unsecured debt and $1,257,850 for secured debt. As long as your debts don’t exceed those limits, you will be eligible for a Chapter 13 Bankruptcy. However, unlike a Chapter 7, it is possible that your income will be too low to successfully complete your bankruptcy. A Chapter 13 requires that your plan be confirmed. If your income is too low to prove that you will be able to make your payments, the court may deny confirmation.

ANSWER: If you are behind on payments for your house or a car that you don’t want to surrender in bankruptcy, a Chapter 13 allows you to spread out the past-due amount over the lifespan of your payment plan. Even if you aren’t behind on payments, you may not be able to keep those assets in a Chapter 7 if they are above your state’s exemption amounts. If you have a car with more than $6,000 equity (for single filers, $12,000 in one vehicle for married filers), you would have to surrender it in a Chapter 7. A Chapter 13 doesn’t require your assets to be under the exemption amounts for your state.

Sometimes Chapter 7 isn’t an option at all. You may not qualify because of income (see above). If you have previously filed a Chapter 7, you will have to wait 8 years until you can file Chapter 7 again. However, if you need the protections of bankruptcy now, you can file a Chapter 13. If the 8 year period expires during your payment plan, you may be able to convert back to a Chapter 7 if you otherwise qualify.

ANSWER: A Chapter 13 allows you to catch up on past-due payments on your vehicle over 3-5 years. You also don’t have to worry about vehicle exemption limits in a Chapter 13. However, unlike a Chapter 7, you won’t have the same option to surrender your vehicle and finance a new vehicle shortly after filing.

ANSWER: Your credit card debt will be included in your payment plan. If there is credit card debt remaining at the end of your 3-5 year plan, it will be discharged.

ANSWER: Your student loan payments can be included in your plan, but your student loans won’t be discharged in either chapter of bankruptcy. However, the automatic stay of protection that goes into effect once your bankruptcy is filed prevents garnishment from all creditors, including for student loans. The garnishment may resume once your case is discharged or dismissed.

ANSWER: A Chapter 13 is basically the intermediary between you and your creditors during your bankruptcy. They will also be analyzing your petition and accompanying documents to make sure there are no inaccuracies or misrepresentations. You will make your plan payments to the trustee. They will also be able to take any additional forms of income, such as inheritance, lawsuit or settlement payouts, or lottery winnings. You should alert your attorney if you expect anything along those lines.

ANSWER: The Chapter 13 repayment plan will last 3-5 years and except for in special circumstances, must be completed before your case is discharged. Your case will be dismissed if you fail to make your payments. If you are unable to complete your payment plan, you may need to file a Motion for Hardship Discharge, convert back to a Chapter 7, or let your case be dismissed and refile.

ANSWER: Your plan will last 3-5 years, depending on your income. If you make below your state’s median income level, your plan will last 3 years. If you make above the limit, your plan will be 5 years. See above for information on how to determine what your state’s median income level is for your family size.

ANSWER: A Chapter 13 Bankruptcy remains on your credit for 7 years.

Chapter 13 bankruptcy infographic

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