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Advantages of Chapter 13 Bankruptcy

Many potential clients come to my Phoenix office for a consultation and think that they want to file a Chapter 7 no matter what because they want to wipe out all of their debts as soon as possible. While this may be the best option for many individuals, it is definitely not the case for all. This article discusses some of the advantages that a Chapter 13 bankruptcy can offer.

Residents of Phoenix are still losing their homes throughout this ongoing recession/depression because they simply cannot catch up on their house payments and have significant house arrearages. In a Chapter 13, those house arrearages will be made up through the Chapter 13 bankruptcy plan. A Chapter 13 bankruptcy plan is either 36 or 60 months. So, instead of having to catch up on all of your arrearages at once in order to avoid a trustee sale on your home, you can file a Chapter 13 and be able to pay off those arrearages over the course of 36 or 60 months. Therefore, for those residents of Phoenix who want to keep their homes, there is a huge advantage to filing a Chapter 13 bankruptcy instead of a Chapter 7.

In addition, many Phoenix residents are upside down on their mortgages and have more than one mortgage on their homes. Chapter 13 bankruptcy gives you the opportunity to "strip" a second or third mortgage off of your home, convert it to an unsecured debt and discharge it at the end of the bankruptcy plan.

Further, a Chapter 13 bankruptcy can allow you to cram down loans on personal property such as vehicles if they were purchase at least 2 and ½ years prior to the bankruptcy filing. If you have debts owed to the IRS, they can only be paid through the Chapter 13 plan as well and cannot collect directly from you during the 36 or 60 month plan, which allows you some breathing room if you have tax debt problems. Also, your student loan payments will be stayed during the course of the Chapter 13 bankruptcy plan.

If you live in Phoenix or the Phoenix area, give Wright Law Offices a call at 480-845-0145 and let us discuss with you further the potential financial benefits to filing a Chapter 13 bankruptcy and whether or not you qualify.



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Wright Law Offices
668 N. 44th St., Ste 320
Phoenix AZ 85008

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Scottsdale Office
Wright Law Offices
7135 East Camelback Road, Ste 230
Scottsdale AZ 85251

Telephone: 480-845-0145 / 866-703-3287
Scottsdale Law Office

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Wright Law Offices
2238 S. McClintock Dr.
Tempe AZ 85258

Telephone: 480-845-0145 / 866-703-3287
Tempe Law Office

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Wright Law Offices
12725 W Indian School Rd, Suite E-101
Avondale AZ 85392

Telephone: 623-258-4480 / 866-703-3287
Avondale Law Office

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Wright Law Offices
1129 Iron Springs Rd
Prescott AZ 86305

Telephone: 623-258-4480 / 866-703-3287
Prescott Law Office

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Wright Law Offices

1731 W. Baseline Rd.
Suite #100
Mesa, AZ 85202
Telephone: 480-845-0145 / 866-703-3287
Mesa Law Office

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Wright Law Offices
20325 N. 51st Ave., Suite 134
Glendale, AZ 85308
Telephone: 623-258-4480 / 866-703-3287
Glendale Law OFfice

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