Jump To Navigation

Chapter 7 versus Chapter 13 Bankruptcy

Posted on November 16th, 2015

What is the difference between Chapter 7 and Chapter 13 bankruptcies? Chapter 7 bankruptcies allow you to erase many debts without having to pay any of it back to creditors. Chapter 13 bankruptcies also erase many debts at the conclusion of a 36 or 60 month payment plan. Chapter 13 bankruptcies also allow you to pay off tax debts over time or catch up on delinquent car and house payments in order to be able to keep your property.

There are advantages of a Chapter 7 filing in Arizona. For example, all debts will be erased for the most part, unless a Reaffirmation Agreement is signed. Wages cannot be garnished after discharge, and collection agencies cannot contact you anymore. Your case will usually be completely discharged after about 6 months from filing.

Chapter 13 advantages in Arizona include keeping all your property as long as you can afford a payment plan. Payment plans are put into place after filing bankruptcy because debt is then reduced. More types of debt are dischargeable in Chapter 13 bankruptcies than in Chapter 7 bankruptcies and you are protected from wage garnishment and collection agencies. Your case will usually be completely discharged after about 3-5 years from filing.

Here at Wright Law Offices, we can help you determine which type of bankruptcy is best for you! We are a debt relief agency and can you file for bankruptcy relief under the Bankruptcy Code. Call our Phoenix bankruptcy lawyer at 602-456-6085 for a free initial consultation.

Source: Arizona Bankruptcy Law, “Arizona Chapter 7 Bankruptcy or Arizona Chapter 13 Bankruptcy?” 2013.

Contact Us for a Free Consultation
Office Locations

Phoenix Office
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

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

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

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

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

Prescott Office
Wright Law Offices
1129 Iron Springs Rd
Prescott AZ 86305

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

Mesa Office
Wright Law Offices

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

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

Facebook IconTwitter IconVisit Us On Google+Visit Us On Google+