Bankruptcy

Chapter 13

Phoenix, Arizona

What is a chapter 13 bankruptcy?

A Chapter 13 Bankruptcy is a debt payment plan. Chapter 13 debt reorganization is used by people who have substantial property and sufficient income to continue to repay debts, at least partially. It is often utilized by sole proprietors who have been unable to meet their debts as they come due, and by individuals who have gotten behind in their mortgage payments but want to keep their house. This sort of bankruptcy is also helpful to address debts which cannot be discharged in a Chapter 7 bankruptcy. Chapter 13 debt reorganization gives you breathing room to get caught up on your debts.

The Phoenix, Arizona Chapter 13 bankruptcy attorneys at Platt & Westby have provided bankruptcy help to thousands of families like yours to receive debt relief through Chapter 13 bankruptcy. Contact our office to talk to an attorney about whether Chapter 13 will work for you.

What happens in chapter 13?

The first step in filing bankruptcy under Chapter 13 is to file a petition with the United States Bankruptcy Court to repay all or a portion of debt. The court will immediately issue an injunction stopping all collection proceedings by creditors, including the seizure of property. Your assets are now under the court's protection.

You will be asked to submit a list of all your creditors, even those with whom you have managed to stay current. You will create a repayment plan with a suggested payment and then turn it over to a court-appointed trustee will review your information and make adjustments deemed fair to you and your creditors. The court then notifies your creditors of your bankruptcy and your proposed repayment plan. Often you must secure approval from your creditors.

The trustee will collect payments from you and distribute that money to your creditors in accordance with the plan. The trustee will make sure that you have enough money to support yourself and your family.

The debt repayment plan will run for three to five years. After successfully completing the plan, the court will hold a hearing where your debts will be discharged. From that point on, those creditors will not be able to contact you further.

Should you file chapter 13?

For people who have substantial property and an income, this type of liquidation is often the best way to go. If you own property, Chapter 13 allows you to keep the property as long as you are able to make your payments. Remember, a discharge will not protect you from having to pay most taxes, child support, alimony and debts incurred based on fraud.

Our Phoenix, Arizona Chapter 13 bankruptcy attorneys can review your financial situation and advise you if Chapter 13 debt adjustment is right for you. Contact our office to speak to an experienced bankruptcy law attorney.

Platt & Westby is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The information provided here is general and should not substitute for the advice and counsel of an attorney.