Chapter 13

People accrue debt for many reasons, be it, medical bills, unemployment, marital problems, or just plain bad luck. Despite the different reasons people accumulate debt Chapter 13 Bankruptcy offers a person a scheduled plan to help rework and organize their debt into a manageable and workable situation.

A chapter 13 bankruptcy enables individuals with a regular income to develop a plan to repay all or part of their debts. This is different than Chapter 7 which allows a lower income individual to discharge their debt at the price of liquidating most of their assets. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years and are able to retain more assets than if they were in a Chapter 7 Bankruptcy.

If the debtor’s current monthly income is less than the applicable Arizona median, the plan will be for three years unless the court approves a longer period. If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years.

If you are ready to find out if you qualify for Chapter 13 relief, begin by filing out our bankruptcy case review form and an attorney from our office will follow up on your eligibility within 24 hours.