Two Types Of Bankruptcy Chapter 7 or 13 You Must Pick the Right One
There are actually two different types of bankruptcy that can help most consumers. The more common one is found in Chapter 7 of the bankruptcy code. It is often referred to as Chapter 7 or straight or liquidation bankruptcy. In this type of bankruptcy the consumer, or debtor, is relieved of all debts (with a handful of exceptions). In return, the debtor must hand over to a bankruptcy trustee property which is not exempted by the State of Arizona or the Federal government. It is important to understand what Chapter 7 bankruptcy CANNOT do. Chapter 7 will not allow a debtor to save a house in foreclosure, nor keep a vehicle where the payments are past due. It will not save non-exempt property of the debtor from being liquidated. It will not discharge all debts, such as income taxes due within the last three years, by the counting of the IRS. In addition, some debtors make too much money to be entitled to file Chapter 7. You’d be surprised just how low that dollar amount is. So, if your priority is to try to stay in your house or keep your car when you are behind on the payments, to keep ownership of non-exempt property, to create a payment plan to pay back taxes, or if you make too much income to qualify for Chapter 7, then you should consider the possibility of a Chapter 13 bankruptcy filing. A Chapter 13 bankruptcy is known as a reorganization bankruptcy. The debtor creates a repayment plan which must comply with bankruptcy requirements, and which involves the repayment of some debt, while releasing the debtor from the full burden of payment. The Chapter 13 Plan allows the debtor to catch-up over a period of three to five years on obligations such as past-due house payments and back taxes. It also allows the debtor some relief, even if the debtor makes too much income to qualify for a Chapter 7 bankruptcy. How can you tell if you qualify for a Chapter 7 or Chapter 13 bankruptcy? Your best option is to make an appointment to see one of the attorneys at Allen & Copperstone. You and an attorney will review your financial situation, and determine which type of bankruptcy is best able to solve your problems and help you look to the future, rather than the past. Are you being constantly harassed by your creditors? Stop all those embarrassing calls immediately! Experienced & reliable Bankruptcy Lawyer providing quality legal services to the Tucson Metropolitan area (Tucson, Cortaro, Rillito, Marana, Catalina, Red Rock, Mount Lemmon, Sahuarita, Oracle, Picacho, Green Valley, Vail, Eloy, San Manuel, Mammoth, Arizona City, Amado, Florence, Casa Grande, Valley Farms, Coolidge, Winkelman, Tubac, Sonoita, Hayden, Sells, Tumacacori, Sasabe, Topawa, Arivaca, Benson, Kearny, Rio Rico, Stanfield, Saint David, Patagonia, Elgin, Pomerene, Sacaton, Huachuca City, Superior, Queen Creek, Nogales, Dragoon, Chandler Heights, Bapchule, Maricopa, Chandler, Bylas, Peridot, Willcox, Miami, Fort Huachuca, Higley, Sierra Vista, Mesa, Apache Junction, Claypool, Tombstone, Globe, Gilbert, Tortilla Flat, Cochise, Hereford, Tempe, Fort Thomas, Eden, Phoenix, Pima, Pearce, Thatcher, Central, Scottsdale, Roosevelt, Safford, Laveen, San Carlos, Fort Mcdowell, Fountain Hills, Ajo, Paradise Valley, Solomon, Elfrida, Bisbee, Naco, Bowie, Tolleson, Rio Verde, Lukeville, Cashion, Mc Neal, Glendale, Avondale, Goodyear, Gila Bend, Peoria, Buckeye, Litchfield Park, Luke AFB, Youngtown, Sun City, El Mirage, Palo Verde, Waddell, Douglas, Pirtleville, Surprise, Arlington, Sun City West, Wittmann). Ronald N. Allen and Cheryl K. Copperstone of Tucson Lawyer Firm Allen & Copperstone P.L.L.C. can be reached at 520-628-8888 or at their office: 252 W. Ina Rd., Suite 203, Tucson, Arizona. We are a debt relief agency and have been proudly helping people in Southern Arizona file for bankruptcy relief under the bankruptcy code. We Also Provide: Wills & Trusts - Divorce & Custody - Creditors Rights. |