Chapter 13 Bankruptcy in Phoenix, Arizona

An alternative to filing Chapter 7

If you are considering how to file personal bankruptcy in Phoenix, the attorneys at Radix Law can help you decide which type of bankruptcy is most suitable for your situation. We strive to use the law to help people emerge from the financial and personal pressures of debt.

Often, filing for personal bankruptcy means deciding between Chapter 7 and Chapter 13. While Chapter 7 bankruptcy is the most common type of bankruptcy, some debtors are not eligible for it, while others do not need it.

Repaying debts with Chapter 13 Bankruptcy

Chapter 13 bankruptcy makes up the majority of the remaining bankruptcy filings not filed under Chapter 7. As a repayment plan bankruptcy, Chapter 13 allows individuals and sole proprietors to pay off debt over the course of three to five years. You are permitted to keep the majority of your property providing that you meet monthly payments to a court-appointed trustee. The terms of a Chapter 13 bankruptcy payment plan can be adjusted if major life changes occur, such as losing your job or becoming seriously ill.

There are several possible reasons why people in debt choose Chapter 13 in Phoenix:

  • Ineligibility for Chapter 7: to qualify for Chapter 7, debtors must pass a “means test” which compares the personal income of the debtor with Arizona’s median state income. Those who do not pass the means test generally pursue Chapter 13.
  • Mortgages: if you cannot keep up with mortgage payments and risk foreclosure on your home, then Chapter 13 could stop foreclosure proceedings and allow you to establish a repayment schedule to pay back missed mortgage payments.
  • Debts that cannot be discharged in Chapter 7: some debts that cannot be discharged under Chapter 7 include child and spousal support, and student loans; a Chapter 13 repayment plan can help ease the burden for these types of debt.

Contact our experienced bankruptcy lawyers in Phoenix to help guide you through the process of establishing a repayment plan.

Chapter 13 Bankruptcy Requirements

Eligibility for filing Chapter 13 in Phoenix, Arizona depends on the stability of your income and the amount of disposable funds available on a regular basis. Current federal law does not allow you to file a Chapter 13 petition if you have more than $1,010,650 in secured debt (e.g., car loans) and $336,900 in unsecured debt (e.g., credit card bills.)

If you need help determining your eligibility and navigating the complicated bankruptcy process, attorneys at the Frutkin Law Firm are ready to help.

Call 602-639-4610 to file Chapter 13 bankruptcy in Phoenix or use our convenient online contact form.