When people are faced with financial problems that seemingly have no solution and no end, they often succumb to feeling of despair and even depression. These are normal emotional reactions to the realization that there are just too many bills to pay every month, but fortunately, the law allows people a way out from under this crushing amount of stress. Filing for bankruptcy protection in Arizona is a strategy that more and more people have been using during this economic downturn, and while anyone who’s thinking of filing for bankruptcy with the hope of retaining their possessions should seek the help of a Phoenix bankruptcy lawyer, below you’ll find information regarding a Chapter 13 bankruptcy filing that can provide you with relief.
Traditionally, filing for bankruptcy protection under Chapter 13 of the United States Bankruptcy Code has been known as a ‘wage earner’s bankruptcy’ because it’s generally the path chosen by those who are generating income but simply cannot get ahead or even caught up on their monthly bills. This type of bankruptcy filing takes into account the fact that the person filing will be able to make some payments on debts that have been accrued, but not in the amounts or in the time frame that creditors are demanding. With the help of an Arizona bankruptcy lawyer and the court, the situation can be resolved such that payments can be made over time that eventually eliminate these debts.
However, filing for Chapter 13 bankruptcy protection can be somewhat complicated, as it involves not only providing the court with a complete and accurate set of documents that reflect the person’s financial situation, but also the offering of a payment plan to the court that must be approved by those involved. This plan is generally a schedule of monthly payments that will be made to creditors through the court over a period of three to five years that, when finished, will dissolve or discharge any remaining amounts of debt affected by the plan. The benefit of this approach is that the person filing for AZ bankruptcy will not have to liquidate assets including a home or a vehicle, but can maintain them as long as the plan is followed and payments are made.
While a Chapter 13 bankruptcy filing may make the most sense for some people, no two financial situations are ever exactly alike. Therefore, if you’re experiencing financial problems, contact the Phoenix bankruptcy lawyers at Phillips Law Group today to schedule an initial consultation so that you can begin to formulate a plan that puts an end to your stress and financial concerns.
