The Scottsdale bankruptcy attorneys of Ariano & Associates, PLLC help clients file for Chapter 13 bankruptcy when this is the best way to reduce or eliminate debt for those particular clients. Many individuals file for Chapter 13 bankruptcy when they do not qualify for Chapter 7 bankruptcy. Our skilled and dedicated bankruptcy attorneys will help to determine if Chapter 13 bankruptcy is a good fit for your individual circumstances.
What Is Chapter 13 Bankruptcy?
Chapter 13 of the United States Bankruptcy Code outlines what the laws, rules and procedures are for filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy is also known as “reorganization” bankruptcy, because most debts are ultimately paid off with the Chapter 13 bankruptcy process. The debt is being reorganized in such a way that you are able to manage your debt without compromising your basic life needs. Further, you are required to undergo credit counseling with an approved agency prior to filing for Chapter 13 bankruptcy.
The key goal of filing for Chapter 13 bankruptcy is to establish a repayment plan that will enable you to pay off your debt in three to five years. While this may seem like a very long time, it often takes much longer than five years to pay off existing credit card debt. Further, formulating an approved repayment plan helps consumers learn to make better financial choices and live without the need for unsecured credit, such as credit cards and medical bills.
With Chapter 13 bankruptcy, if your total debt burden is too high, you may not be eligible to utilize the benefits and protection of the bankruptcy court by filing for Chapter 13 bankruptcy. Your income is the most important factor considered to determine if you may be eligible for Chapter 13 bankruptcy. As long as you are able to pay off your debt with a reasonable repayment plan that is negotiated with your creditors, you will be able to successfully complete the Chapter 13 bankruptcy process.
Depending on how much debt you owe and what your income is, your repayment plan may take three years or five years. Your financial information will be scrutinized to ensure any disposable income you have is used to pay off your debt through Chapter 13 bankruptcy. If you are not able to make the required payments, you may be able to modify your repayment plan, or have certain debt discharged based on hardship. After you have completed your repayment plan, your debts will be discharged and wiped out, leaving you with a blank slate.
Why it is Essential to Have Ariano & Associates, PLLC by Your Side
Because the Chapter 13 bankruptcy process and be very confusing, time-consuming, and stressful, you should consider allowing one of our experienced bankruptcy attorneys to handle all of the confusion and stress for you. Anything can happen during bankruptcy proceedings, and going through the process alone will be a daunting task for you to handle. If you wish to modify your repayment plan, for example, you would be better off leaving this task in the hands of your bankruptcy attorney to ensure you are complying with all laws, rules and regulations.
Contact the Scottsdale Bankruptcy Attorneys of Ariano & Associates, PLLC Today
Chapter 13 bankruptcy may be just what you need to tackle your debt head on, formulate a repayment plan and be debt free once the bankruptcy process is done. To find out if Chapter 13 bankruptcy is a good debt-elimination tool for you, contact the Arizona bankruptcy attorneys of Ariano & Associates, PLLC right away. Our seasoned attorneys file Chapter 13 bankruptcy petitions on a regular basis, and we know exactly what needs to be done to ensure you are successfully completing the bankruptcy process. To speak with one of our bankruptcy attorneys, contact Ariano & Associates, PLLC today. We are available 24/7 to answer your questions and address your concerns.