Chapter 13 Bankruptcy Lawyer Scottsdale, AZ
If you earn a good, regular income but are struggling with debt, then you need a Scottsdale, AZ chapter 13 bankruptcy lawyer to represent your case. There are two types of bankruptcy that you can file for: chapter 7 and chapter 13. Chapter 7 focuses more on discharging debts, while chapter 13 focuses on a payment plan which allows you to pay off your debt. An experienced attorney will be able to guide you to which path is right for your particular case. In the meantime, learn more about chapter 13 bankruptcy, and then contact Wright Law Offices for help.
The Details
Chapter 13 is basically a repayment plan. Your Scottsdale chapter 13 bankruptcy lawyer will work with the courts and your debtors to come up with a fair repayment plan over the next few years for your case. This plan may cover some or even all of your debt. At most, you are allowed five years to make payments. Depending on your amount of debt, you may only need the minimum amount of time to make repayments which is three years. This will be determined based on what you owe and how much money your household grosses in a year.
Under this type of bankruptcy, you lose all your credit cards, and this will remain on your credit report up to a decade — which means getting future loans will be incredibly difficult. However, you can build back your credit score, and after filing for this, the debt collectors can no longer contact you. If you are on a plan in which you do not have to pay off all your debts, after you have made your final payment to the plan, your other debts will be discharged.
The biggest benefit to chapter 13 is that your assets are truly protected. Since you have agreed to a payment plan, you will not need to worry about repossessions so long as you abide by the plan. It is still recommended, though, that if you have something that is plunging you deeper into debt with large payments that you get rid of it. For example, maybe you purchased a car that is a bit too expensive for your budget.
The Downsides
As aforementioned, chapter 13 can remain on your credit score report for a long time. You also lose all credit cards, and getting loans will be nearly impossible. If you do not already have a mortgage, it will be almost impossible to get one after filing for bankruptcy. There are also strict rules in place that must be followed in order to maintain this status.
Beyond that, if you have tried to file for other forms of bankruptcy recently and have been denied those claims due to missed court appearances or missed mandatory debt training, you will not be eligible to file for chapter 13.
The Upsides
This plan allows you to keep all of your assets. You do not necessarily have to repay all of your debts. Again, this number will be determined based on income and amount of debt. With a longer payment plan, you have plenty of time to pay off debts.
If you are struggling financially and are considering filing for bankruptcy, contact a Scottsdale chapter 13 bankruptcy lawyer at Wright Law Offices for help.
How Do Chapter 7 and Chapter 13 Stack Up?
Your Scottsdale, AZ bankruptcy lawyer knows that when you are considering bankruptcy, you want to know all of your options. For most people, it typically comes down to two types of bankruptcy: Chapter 7 and Chapter 13. You may be wondering which one you would qualify for and how they might both be able to help you with your financial situation. If you are considering bankruptcy and want to see what a lawyer can do for you, contact Wright Law Offices. We understand that for most people who are filing for bankruptcy, it can be one of the most difficult decisions they ever make. Give us a call to see how we can help you through this.
Comparing the Two Types of Bankruptcy
It can be helpful to understand the advantages and disadvantages of filing for bankruptcy. We understand that realizing bankruptcy is your best option is not easy and you may need time to come to terms with going this route.
Chapter 7 Advantages. There are many advantages to a Chapter 7 filing. Some of these advantages are:
- Getting to start fresh in a way you might not have thought possible. With Chapter 7, you will only owe debts you have for secured assets.
- You can keep property and earnings to yourself after you file for bankruptcy.
- You will immediately be protected against debt collectors.
- You will not have to go through the bankruptcy process for long periods of time. You can typically complete the whole process in 6 months.
Chapter 13 Advantages. Similar to Chapter 7, Chapter 13 also has many advantages when it comes to filing.
- You can restructure payment plans and avoid losing any of your assets.
- You can reduce your debts (but not cancel them like you can with Chapter 7).
- Similar to Chapter 7, once you file for Chapter 13 bankruptcy, you will be immediately protected against debt collectors.
- You have more time where you can pay your debts instead of having to find a way to earn more money to pay off your debts quickly.
There are different advantages to either type of bankruptcy and you should speak with your lawyer to learn which one would work better–and which one you would be eligible for–given your circumstances.
Repairing Your Credit After Bankruptcy
If you have successfully begun the process for Chapter 13 bankruptcy, you may be feeling overwhelmed with where to start when it comes to repairing your credit. Your Scottsdale bankruptcy lawyer knows that this can be complicated but it is a great time to plan what you want to start doing.
You should talk with your lawyer about getting a secured credit card since most traditional credit cards may not be an option for you. When you do this, you can make payments on your card and begin rebuilding your credit. Additionally, prioritizing your bills following your bankruptcy is another great way to show that you are responsible and that you are trying to fix your credit.
Bankruptcy does not have to permanently ruin your credit. When you are ready to learn more about how Chapter 13 bankruptcy can help you, call Wright Law Offices. Our Scottsdale bankruptcy lawyer is here to help you now.
What You Shouldn’t Believe About Bankruptcy
If you are thinking about filing for bankruptcy, you may want to consult a Scottsdale, AZ bankruptcy lawyer as soon as possible. Bankruptcy can be a complex process, so you want someone knowledgeable and experienced on your side. A lawyer from Wright Law Offices can guide you through the entire process and look out for your best interests.
Here are some common myths about bankruptcy.
- If I file for bankruptcy, my credit is ruined forever. It is true that your credit rating will go down after you declare bankruptcy. However, it does not have to stay that way forever. It is possible to increase your credit score over time with some effort. For example, if you can’t qualify for a traditional credit card initially, get a secured credit card, which requires you to make a cash deposit. If you make your payments on time each month, you may be able to qualify for a regular credit card in time.
- Filing for bankruptcy will hurt my spouse’s credit. This is one of the most common concerns people have about filing for bankruptcy. They do not want to harm their spouse’s credit in the process. However, if you file separately, the bankruptcy will not impact your spouse’s credit.
- Only financially irresponsible file for bankruptcy. Unfortunately, this stigma about bankruptcy still exists. Some people assume that those who file for bankruptcy must be financially irresponsible. However, that is not always the case. As a Scottsdale bankruptcy lawyer can attest, some people lose theirs jobs or have high medical debt and have no choice but to file for bankruptcy.
- After you file for bankruptcy, your creditors can still contact you. If you are far behind on your bills, your creditors may contact you on a daily basis. This can make you feel even more stressed. However, after you declare bankruptcy, an automatic stay will be issued, prohibiting your creditors from contacting you again.
- Bankruptcy eliminates all of your debt. False. Bankruptcy can discharge a lot of your debt, but it might be able to get rid of all of it. Credit card bills, personal loans and medical debt are generally dischargeable in bankruptcy court. However, you will not be able to discharge student loans, back taxes, child or spousal support.
- You will lose all of your property in bankruptcy. This is one of the most common fears people have about bankruptcy. The good news is that a lot of property is exempt, such as your house and vehicles.
- You do not need a lawyer. While you technically are not required to hire a lawyer to file bankruptcy, it is in your best interest to do so. A lawyer can help you fill out the paperwork and prevent you from making costly mistakes that could get your bankruptcy case dismissed. You have a higher chance of obtaining a favorable outcome with a skilled lawyer on your side.
Schedule a consultation with a Scottsdale bankruptcy lawyer from Wright Law Offices to discuss your case in detail.