Post Featured Image

Chapter and Verse of Chapter 13 Bankruptcy in Arizona

In our previous entry, we talked about filing Chapter 7 personal bankruptcy in Arizona. In this article, we’ll continue the series, picking up with how to file Chapter 13 personal bankruptcy here in the Grand Canyon State.

Chapter 13 at a Glance

In personal finance circles, Chapter 13 bankruptcy is known as the “wage earners bankruptcy” because you’re proposing a repayment plan based upon your current and future income. On average, Chapter 13 payment plans run between 3-5 years. Chapter 13 allows you to – in essence – buy time to prevent home foreclosures, prevent interested from jacking up any tax debts, make good on any missed auto loan payment, and more. To qualify for Chapter 13, you must have a reliable stream of income as well as a bit of disposable income to put towards the payment plan.

Before Filing for Chapter 13 Bankruptcy

The filing process for Chapter 13 bankruptcy in Arizona is nearly identical to filing for Chapter 7 bankruptcy. Before you file for either, you are required to complete credit counseling within 6 months before filing. Included in that is a personal financial management class. Here’s a list of approved agencies for credit counseling in Arizona. You’ll also need to put together a repayment plan proposal for your creditors.

Which Bankruptcy is Best for Me?

No two situations are alike, but if you’re behind on your mortgage and don’t want to be kicked out of your house, Chapter 13 is the only of the two options that allow you to do that. You’re able to make good on the payments that are overdue and eventually go back to the terms of the original mortgage agreement. If you’re wanting to get rid of the heavy debt without having to pay it back, Chapter 7 is the way to go.

The Oswalt Law Group in Arizona Can Help in Your Bankruptcy Decision

Having to face the burdens of seemingly crushing debt is a heavy burden to shoulder. The load can be lightened significantly by talking with a lawyer who knows the ins and outs of bankruptcy law. We welcome your call to the Oswalt Law Group for a free consultation about how the best way forward to improving your financial situation. Our number is (602) 225-2222.

Free Case Evaluation

  • This field is for validation purposes and should be left unchanged.