Generally, Chapter 13 Bankruptcy is the preferred options for those who have valuable assets, such as a home that is not completely covered by the bankruptcy exemptions they wish to keep.

In Chapter 13 Bankruptcy, your bankruptcy attorney develops a debt repayment plan proposing to repay a portion of their debt to creditors over three to five year period, during which the debtor makes up payments that are overdue and pays into the Chapter 13 plan the equivalent value of any assets not covered by the state or federal exemptions. The Chapter 13 plan is presented to the Arizona Chapter 13 trustee for approval and confirmation by the Arizona Bankruptcy Court at a confirmation hearing to ensure that the plan meets the Bankruptcy Code requirements for confirmation. Chapter 13 Bankruptcy is usually appropriate only where an individual debtor has a regular source of income. The Chapter 13 plan developed by your bankruptcy attorney will require regular monthly or biweekly payments to the Chapter 13 trustee.
Chapter 13 Bankruptcy is usually appropriate only where an individual debtor has a regular source of income.
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To schedule a consultation, call Patel Law PLC., at (602) 266-2169.

Chapter 7 Bankruptcy v. Chapter 13 Bankruptcy

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are very different. The main difference is that the Chapter 13 debtor remains in possession of the property of the estate and makes payments to creditors, through the Chapter 13 trustee based on the debtor anticipated income over the life of the plan. Additionally, in Chapter 13 Bankruptcy, there is no immediate discharge of debts. The Chapter 13 debtor must complete the payments required by the plan before a bankruptcy discharge is received. In both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy, the debtor is protected from lawsuits, garnishments, and other creditor actions. In Chapter 7 Bankruptcy, the debtor is protected from the bankruptcy filing under the 362 stay and after discharge by the discharge stay. The Chapter 13 Bankruptcy debtor is protected from the filing and during the time that the plan is in effect and after.