Resolving Financial Issues For Arizona Residents
At Mark W. Lischwe, P.C., we are here to help you find the appropriate debt relief, suited to your specific situation. If credit counseling or debt settlement are no longer an option, Chapter 7 or Chapter 13 bankruptcy may be the solution.
Bankruptcy was designed to help people obtain a fresh start. A few of the most popular questions about bankruptcy include:
- Am I a candidate for bankruptcy?
- Will I be able to keep my house? My vehicles?
- Are there any debts that I will I still owe?
- Will garnishments, foreclosures and other collections stop once I file?
- Are there alternatives to bankruptcy?
Chapter 7 bankruptcy is a straight liquidation of your debts and assets. In most cases, your income is less than your expenses on a monthly basis. Chapter 7 discharges your dischargeable debt and any non-exempt assets can be sold by the Trustee, for distribution to your creditors on a pro rata basis. We will discuss what assets you own at our consultation to determine if any of your property is non-exempt and what options are available to you. When your bankruptcy is filed, the Court assigns a Trustee who oversees your bankruptcy estate. Approximately 45 days after your case is filed, you will be required to attend a hearing in front of your Trustee. In most cases, you will receive a discharge within 3-4 months.
Chapter 13 bankruptcy is a reorganization of your debts; your income is greater than your expenses and you are reorganizing your debt over a 3-5 year period by paying your disposable income through a Chapter 13 Plan, which may include mortgage arrears, support arrears, taxes, vehicle payments and other secured debt. This payment may also include some monies being paid toward your credit cards and other unsecured debts but, in most cases, your unsecured creditors (credit cards, unsecured loans and the like) do not receive 100% of their balances. When your bankruptcy is filed, the Court assigns a Trustee who oversees your bankruptcy estate. Your payments will be made directly to the Trustee for the duration of your Plan and the Trustee will manage the Plan by paying off your creditors during that period of time. In most cases, your mortgage payment will continue to be made directly to the lender. Approximately 45 days after your case is filed, you will be required to attend a hearing in front of your Trustee. Within approximately 30-45 days from your hearing, the Trustee will make a recommendation as to whether the Plan is feasible and, if not, what steps must be taken for the Trustee to approve the Plan. Once your Plan and corresponding requirements have been completed, you will receive a discharge.
If you are facing foreclosure, filing for Chapter 13 bankruptcy prior to the sale can provide you with an opportunity to repay the arrears owed at the time of filing. There are also additional options available to you if you have a second mortgage, depending upon your circumstances.