Get the right information about Chapter 13 from our Mesa bankruptcy attorneys
Our Mesa bankruptcy attorneys are often asked about Chapter 13 as a solution to many different types of client situations. Most people have heard that Chapter 13 could liquidate a lot of the debts and give them the opportunity to pay back the rest through a reasonable repayment plan. While this is basically true, our Mesa bankruptcy attorneys ask a lot more questions before they recommend it as the best possible solution.
Our Mesa bankruptcy attorneys usually begin with a discussion on Chapter 13.Mesa bankruptcy lawyers at times must explain that not all debtors qualify for a Chapter 13 case.
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You may file a Chapter 13 petition only if you have certain qualifications. These include:
A regular and reliable source of income. Our Arizona bankruptcy attorneys should tell you that you must show that you are able to meet the terms of your repayment plan. To this end, the Bankruptcy Code requires that your income be "stable and regular".
Enough disposable income. The law requires you to have income left over after your expenses for basic human needs each month to allow you to make your monthly payments. There is no set formula for determining how much income is enough, and the courts are flexible in determining this. Your lawyer should help you to prepare a proposed budget for the court to see if you satisfy these requirements.
Debts must not be too high. If your secured debts exceed $922,975, you are not eligible for a Chapter 13 bankruptcy. Also, your unsecured debts may not exceed $307,675 -- unsecured debts are debts for which you have not pledged any of your property as collateral-such as most credit card debt, personal loans, and utility bills.
Those who don't qualify for Chapter 13 may qualify for Chapter 7
Chapter 7 was designed to help those in the worst possible situations. Filing a Chapter 7 is your legal right and a courageous step that may obliterate the crushing stress of enormous debt. The beauty of Chapter 7 is that certain types of your property may be untouchable by creditors. Covered property may include:
Your primary residence
Certain items of personal property
Tools
Work equipment
Your vehicle
Numerous other categories of property
If you are experiencing current financial difficulties, you should find out more about both Chapter 7 and Chapter 13. A good place to start is our web site. You may fill out the free case evaluation form or call the toll-free number 1-877-349-1309 for answers to your specific questions. All information is kept strictly confidential. One of our experienced professionals should contact you to schedule a free, no-obligation consultation.
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The purpose of this web site is to help you learn everything you need to know about bankruptcy, the process, your bankruptcy attorney and your legal rights. The best place to start is with the U.S. Bankruptcy Code. It delivers protection to people in financial jeopardy who are suffering under mountains of debt. Bankruptcy is your legal right.