Phoenix Bankruptcy Lawyers


There are many reasons an individual or couple file a chapter 13, here is why.



A chapter 13 bankruptcy works much different than that of filing a chapter 7 bankruptcy in Arizona. In a chapter 13, the debts are actually restructured in a way that allows the consumer to pay back a percentage of their liabilities in lieu of a complete discharge. This form of bankruptcy is very popular because it allows a consumer to retain their properties such as homes, cars, electronics, etc. without repossession by the lender.


There is actually a payment plan set up by the State Trustee who also deals with the lenders on behalf of the consumer involved in the bankruptcy case. This payment plan has a specific monthly payment amount according to the income of the individuals involved in the bankruptcy case. The payment plan is in effect for usually 3-5 years. It can sometimes be a little longer depending on varying circumstances surrounding the individuals involved. If a payment is missed, the bankruptcy may be subject to void.


In a chapter 13 bankruptcy, the attorney representing the client must structure and propose the payment plan according to the financial documents sumbitted to their law office by their client after the attorney reviews all materials. Once this is submitted to the court, it is up to the Trustee to approve the payback schedule.

There are many benefits for an individual filing a chapter 13 bankruptcy in the State of Arizona. A person or persons filing a chapter 13 bankruptcy can benefit by completely eliminating a 2nd mortgage on a home if they have one. This benefit is huge because this creates instant equity for the individual involved. Once the chapter 13 bankruptcy payment plan has been completed the individuals involved in the bankruptcy case own all property free and clear because of the fixed term and payment schedule. These debts can be the following:


  • Any cars, trucks, or autos
  • Any electronics
  • Any other loans with property used as collateral
  • All collections wiped clean
  • Any personal loans wiped clean
  • All credit card balances free and clear

This is extremely different in comparison to filing a chapter 7 bankruptcy.  This is why it is so important to meet with an attorney regarding filing bankruptcy. It is important to know what your bankruptcy options can be in the even you need to file a bankruptcy in Phoenix, Arizona.

*Not all individuals can qualify for filing a chapter 7 or chapter 13 bankruptcy in Phoenix, Arizona.

We help clients file bankruptcy in Phoenix, Glendale, Peoria, Avondale, Anthem, Laveen, Tolleson, Goodyear, Surprise and Sun City , Arizona.