Most all of us face debts that get out o control in unforeseen circumstances. Different circumstances can cause debts to accumulate like illness and job loss. When you have tried other options for getting out of debt that failed, Chapter 13 Chandler AZ Bankruptcy is a legal way to clear yourself of debt. Some debtors will prefer Chapter 7 bankruptcy because it is the most straightforward of all kinds. Chapter 7 is a liquidation of non-exempt assets like valuable collections or family heirlooms. The money generated from sells goes toward non-exempt debts. Chapter 7 bankruptcy can stay on your credit report seven to ten years. In some cases,
Chapter 13 bankruptcy is a better option since it does not impact your credit like Chapter 7. Chapter 13 allows you to keep assets and pay back creditors under a new payment plan. Like all other types of bankruptcy, you must file a petition with the local court. The petition should include all of your liabilities, assets, secured debts, unsecured debts, and how you earn income. If you file Chapter 13, you must have proof of steady income and copy of your most recent tax return. You will also need to include a certificate showing you have completed the required credit counseling.
Three months after filing, you meet with creditors. A trustee questions you under oath about your situation so you should be honest. You are required to devise a repayment plan you devised in credit counseling. The courts determine if the plan is feasible within 45 days after the meeting. You have up to five years to settle secured debts. A creditor expects to get a least 50% of unsecured debt. Unsecured debts cannot be greater than $336,000 and unsecured debts cannot be more than $1,010,650. You should begin making payments 30 days after the plan has been approved.
Chapter 13 Chandler AZ is ideal if you want to pay off debt and keep assets. While any bankruptcy can have a serious impact , Chapter 13 shows you are interested in being responsible for your debt. Before deciding whether or not to file bankruptcy, is advised you seek a lawyer. Visit site for more information.