Chapter 13 Bankruptcy Lawyer Prescott, AZ
For those considering filing for bankruptcy, it is strongly recommended that you first consult with a Prescott, AZ Chapter 13 bankruptcy lawyer before filing. There are several bankruptcy chapters to choose from, so it will be important that you apply for the one best suited for your situation. Chapter 13 bankruptcy is described as a repayment plan bankruptcy or wage earner’s bankruptcy. It is a chapter often used by individual consumers, particularly those who are struggling financially but have enough income to pay some of those debts back. If you have questions about filing for bankruptcy, our team at Wright Law Offices is ready to speak with you.
How Chapter 13 Bankruptcy Works
Chapter 13 bankruptcy works by offering certain forms of financial relief for those with substantial debts, while giving them an opportunity to pay some debts back. One of the most favored parts of filing for bankruptcy in general is the fact that an automatic stay gets enforced. Meaning, creditors and collectors have to stop writing, calling, suing, garnishing wages, or otherwise attempting to collect money. Chapter 13 can halt foreclosure and repossession, at least temporarily. As a Prescott Chapter 13 bankruptcy lawyer explains, this also helps protect co-signers with loans from being pursued by creditors.
Chapter 13 Bankruptcy Benefits
Chapter 13 is designed for those who still have jobs and are earning enough money to pay some debts, but they need a little support to do so. Debtors are given more time to submit payments and usually do not have to pay the full amount of their debts back. Essentially, this chapter is like a debt consolidation plan, where the debtor sends in monthly payments based on what they can afford and no longer has to have contact with creditors or collection agencies. Many debtors find immediate relief knowing they are working towards financial stability and don’t have to be harassed or pestered by collectors all the time.
Repayment Plan Considerations
When a repayment plan is being established, priority debts have to get paid first and in full. A repayment plan often takes between 3-5 years depending on the monthly income and family size of the debtor. A person earning less than what is the state median for households may only have to fulfill a repayment plan for three years. Those whose earnings exceed the state median for household size may be given a five year repayment plan. When a payment plan is complete, leftover debts may get discharged even if the debtor didn’t pay back the full amount. However, not all debts are dischargeable and your lawyer can go into further detail about that based on your individual case.
Get Bankruptcy Help Today
Chapter 13 is only one of the six bankruptcy chapters to choose from. After consulting with a Prescott Chapter 13 bankruptcy lawyer, we can suggest which chapter is best for your situation. If you are ready to get bankruptcy help today, contact our team at Wright Law Offices to begin your journey towards financial wellness.