For those who are in tight financial predicaments, it can help to talk with a Phoenix, AZ Chapter 13 bankruptcy lawyer about filing for bankruptcy. Despite the falsely negative connotations that people associate with bankruptcy, it is actually a reliable resource for overcoming substantial debts that feel like a daily burden. We know that those struggling financially tend to feel like their debts are all-encompassing, and that they can’t think about much else. After all, debt collectors sure can be aggressive and persistent in their attempt to get payments from debtors. If your earnings do not cover the minimum payments required for your debts, and you don’t see a wage increase in the near future, then it’s wise to consider your bankruptcy options. If you have further questions, contact our team at Wright Law Offices.
How Chapter 13 Bankruptcy Works
There are six bankruptcy chapters for you to choose from, but the one you file for will depend on your individual situation. Each bankruptcy chapter is designed for a specific set of circumstances that an individual or company is dealing with. By filing for Chapter 13, you would have to partake in a repayment plan, which is usually between 36-60 months, and how much you pay would depend on your earnings. As your Phoenix, AZ Chapter 13 bankruptcy lawyer can explain, a 36-month plan is proposed to those whose gross income is under the median income for the state. A 60-month plan would be proposed to those whose gross income is higher than the median income for the state. After this repayment plan time period has concluded, the remaining debts owed may be discharged and the debtor is no longer obligated to pay the left over balance.
Filing For Bankruptcy Considerations
When meeting with a member of our team, we will go over the various pros and cons of filing for bankruptcy. It is imperative that you file for the most appropriate bankruptcy chapter based on your circumstances, and that you understand what the requirements of you will be so that you are set up for success. There will be some downsides to consider, such as having a bankruptcy filing stay on your credit report for several years, and it is likely that your credit score will go down. The higher it is now, the more it will be impacted. However, if you remember that this path will eventually lead you to more financial freedom and stability, then it can be worth it.
Bankruptcy Support At Wright Law Offices
Deciding whether you should file for bankruptcy or not may be weighing heavily on your mind. Rest assured that by consulting with a Phoenix Chapter 13 bankruptcy lawyer, you will know whether this path is the right one for you. If you are tired of dealing with relentless debt collectors and need a reliable resource in restarting your financial stability, contact Wright Law Offices today. We are ready to offer insight into your options and which bankruptcy chapter will benefit you the most.