Phoenix Bankruptcy Lawyer allow most consumers and small business owners to file for bankruptcy under Chapter 7 and Chapter 13 of the bankruptcy code. Most people do not understand what filing bankruptcy is. I have designed articles on this site to dispel many of the most common myths and misinformation about our laws and what happens when an Phoenix Chapter 7 or Chapter 13 is filed.
Too often people call me too late to get the best results in their bankruptcy case. Many times, often motivated by feelings of guilt and remorse, people will make a bad situation worse. Unrealistic attempts at solving debt problems through the use of indifferent consumer credit counseling services. High cost debt consolidation loans, debt settlement. Second mortgages, and unrealistic payment plans. Make a bad situation worse.
My goal is to help bankrupt you with the information you need to decide if a Chapter 7 or Chapter 13 bankruptcy statement makes sense. Of course, when you can pay your bills realistically and without undue hardship, filing a bankruptcy case will make no sense. I promise you that I will not risk my professional reputation by recommending a bankruptcy filing when you have other realistic options.
4.bankruptcy is a concept that many people fear. Many who are considering filing for bankruptcy already face a rather stressful situation.
Bankruptcy is an instrument that exists to give people a second chance when there seem to be no other viable alternatives. Just be sure that it is the right tool to solve the situation you are in.
Consider these points:
1) There are two types of bankruptcy.
This essentially eliminates all your debts (excluding student loans). The process is very direct, fast, and simple in most cases. There are certain requirements that must be met. Find out with an attorney or research the subject on the Internet.
This is like a payment plan to pay off the bankruptcy. If you do not qualify for Chapter 7, Chapter 13 will be the alternative. You must make a single payment to a trustee, and the money would be distributed among the people to whom you owe money. This usually lasts between 3 and 5 years.
2) Consider an alternative. Sometimes bankruptcy is an effective option, but sometimes it is not. Consider cutting your expenses or getting a part-time job.
Often, if you inform the people who have loaned you money that you are considering bankruptcy, they will accept a reduced amount as your total payment. After all, something is better than nothing. You can pay off your debt by paying only 20% of the total balance.
3) Understand which debts will not be discarded. The two biggest debts that are not covered by bankruptcy are student loans and not paying child support. A federal judge may choose to dismiss your student debts, but this is unlikely to happen.
4) What will happen to your house? This varies dramatically from state to state. Some states allow you to keep the value of your home up to $ 1 million. Other states only allow you to preserve $ 10,000. Check this out before you apply.
You may be forced to sell your home if you apply for Chapter 7. Chapter 13 always allows the debtor to keep your home.
5) What will happen to my other assets? You may be forced to sell some of your assets, including your car (depending on the assets you own and the entity where you live). Again, investigate it before submitting your paperwork.
6) Check your pension, 401 (k), and your IRA. In most states, these aspects are exempt from the bankruptcy process. Do your homework!
7) Consider your co-signers. If you apply for a Chapter 7, the co-signers you have will be caught by your debt. If you apply for Chapter 13, the co-signers will not be involved.
8) How will it affect your personal life? Other people will probably find out about your bankruptcy.
You will have to reveal everything to the court and most of the records are public.