Our Glendale bankruptcy lawyers assist clients in seeking debt relief through Chapter 7 and Chapter 13 bankruptcy cases. The bankruptcy process gives individuals and couples the fresh start they need to recover from a financial crisis. It also gives people the chance to get out of debt based on their current financial means and resources.
Getting Rid of Debts in Bankruptcy
Filing a bankruptcy case can get rid of most, if not all, unsecured debts. Unsecured debts include, but are not limited to:
- Medical debts
- Credit card bills
- Personal loans
- Judgment liens
- Old utility bills and rent payments
- Most tax debts
- Alimony and child support
- Student loans
Unfortunately, alimony and child support are never forgiven in a bankruptcy case. Most tax debts and student loans are also not eligible for a bankruptcy discharge. However, filing a Chapter 13 bankruptcy case may help you spread out these debts over a five-year plan to get rid of these debts.
Bankruptcy does not remove liens from property. If you want to keep your home or car in a bankruptcy case, you must pay the secured creditor. However, you can surrender your home or car if you owe more on the loan than the property is worth if you want to get rid of the debt without fear of obtaining a personal judgment.
What is Chapter 7 Bankruptcy in Glendale?
A Chapter 7 bankruptcy case is a liquidation bankruptcy. Even though bankruptcy under Chapter 7 is a liquidation process, most cases filed under Chapter 7 in Arizona are no-asset cases. The debtors keep their property and get rid of the debts they cannot afford to pay.
Through careful analysis of your financial situation, our Glendale Chapter 7 bankruptcy lawyers determine if you meet the income requirements for Chapter 7. They also carefully review the Arizona bankruptcy exemptions to determine if any of your assets may be at risk in a Chapter 7 case.
Our lawyers discuss the pros and cons of Chapter 7 with you to help you decide if filing a Chapter 7 bankruptcy case is right for you.
Chapter 13 Bankruptcy in Glendale
Chapter 13 bankruptcy cases are reorganization cases. Debtors in Chapter 13 propose a plan of reorganization that restructures their debts into affordable monthly payments. Most Chapter 13 plans in Arizona are five-year plans. However, some individuals may qualify for a three-year bankruptcy plan. Debtors submit plan payments to a Chapter 13 trustee who uses the funds to pay creditors according to the confirmed plan.
There are certain advantages of Chapter 13 that Chapter 7 does not offer. Through a Chapter 13 plan, a debtor can prevent foreclosure and stop repossession. In some cases, a debtor may reduce car loan payments and the amount owed on the secured portion of the lien.
Debtors can spread out payments for alimony, child support, tax debt, and other debts that may not be dischargeable in a bankruptcy case. By doing so, the person avoids court action and other aggressive debt collection efforts.
Our Glendale Chapter 13 bankruptcy attorney carefully analyzes your financial situation to create a Chapter 13 plan that proposes the lowest payment allowed by law to give you the best chance of succeeding in your bankruptcy reorganization.
Contact Our Glendale Bankruptcy Attorneys for More Information
Bankruptcy is an affordable way to get rid of the debts that you cannot pay. However, you need an experienced bankruptcy lawyer in Glendale to guide you through the process of filing bankruptcy.
The legal team of Allegiant Law Group is here to help you as you explore bankruptcy options. Call 602-562-1000 now to schedule your free consultation with a Glendale bankruptcy lawyer.