by Christy Thompson on May 6, 2010
Chapter 13 bankruptcy can be a great way to recover for many people who are in over their heads with their mortgages, especially if that debt is severely creeping into other financial aspects of their lives. As we all know, finances are a huge source of mental and emotional strain — as of the early 2000s, finances actually trumped children as the #1 reason for divorce in Arizona. Given that this is the case, knowing if Chapter 13 is the best choice for you will allow you to sigh a breath of relief… probably for the first time in a long time.
Chapter 13 might be for you if:
- you need to stop a foreclosure, or garnishment of your wages, or are on the brink of having a car or other large ticket item repossessed;
- if you have completely had it with unfair creditor practices, including harassment via phone, e-mail, or even at your own front door;
- if you think you’d be able to handle one payment per month to pay off your debt once your debt is reorganized — keep in mind that this one payment means:
- you will not have to directly interface with creditors,
- you will not have to pay interest,
- your debts will be prioritized for you by a trustee,
- you’ll have (generally) three to five years to pay off your debt so you can actually get some much needed relief!
Have you had it with all the anger being aimed toward you during harassing phone calls? Are you ready to actually sleep instead of lay in bed worrying?
Find out if Chapter 13 is the right choice for your AZ bankruptcy filing — if it’s not, Thompson Law will find another way to get you the debt relief you need! (480) 634-7480 or e-mail us by clicking here!
by Christy Thompson on May 4, 2010
It never seems to be quite clear who is eligible to file for which chapter and which one is best suited to every individual’s unique needs. Perhaps all the convolution is due to the fact that filing bankruptcy in Arizona and the rest of the country has ramped up every single quarter since the first quarter of 2009. In fact, the first quarter of 2009 — now a tad more than a year ago — experienced a 33% increase in personal bankruptcies from the same quarter in 2008. Wow. Okay, so let’s start with just ONE kind of bankruptcy: Who is Chapter 7 for?
Chapter 7 is for those who need to liquidate their assets in order to pay the creditors that they owe. Of course, it is a little more complicated than that, for example, the bankruptcy code has established WHO is eligible for Chapter 7 Bankruptcy based on a number of criteria — but before you get wrapped up in that, read on and see if the below scenario sounds like you. Then your bankruptcy attorney can decide if you meet the criteria. If you don’t, then the next step will be to look into Chapter 13, but we’ll get into that later.
If you:
- are overwhelmed with credit card debt, medical bills, personal loans, or payday loans to the point where you can’t make utility payments or pay your mortgage, Chapter 7 may be right for you.
- are unable to pay all your bills, eat, and pay for basic essentials for your family, Chapter 7 may be right for you
- are paying some bills one month, and others the next to avoid utility shut-offs, Chapter 7 may be right for you
- opt not to pay all your bills each month because you know this will put your bank account(s) in a negative balance, Chapter 7 may be right for you.
Visit Thompson Law Firm today or give us a call at (480) 634-7480. We can help you determine whether Chapter 7 bankruptcy is right for you. Filing bankruptcy in Arizona doesn’t have to be scary — let Thompson help you get started!
