Guiding Clients Through Chapter 13 Bankruptcy From Start to Finish
If Chapter 13 bankruptcy makes the most sense for you based on your specific needs and on the results of the means test, the Arizona Law Group of Trezza & Associates will guide you through all steps of the process. At the very beginning, we will educate you about the process. You will not have to worry about surprises.
The first thing to do is hire our bankruptcy law firm. Contact us today to schedule a consultation with experienced lawyer Stephen Trezza.
The Difference Between Chapter 13 and Chapter 7
Essentially, the steps involved in Chapter 13 bankruptcy match those in the chapter 7 process. The biggest difference between step one and step 10 is the debt repayment plan. While the Chapter 7 process only lasts about half a year, the Chapter 13 process lasts three to five years. During this time, you will use your disposable income, as calculated in the means test, to pay off a portion of your debts. Some debts may be paid off at 100 percent, others at much less. Upon completion of the plan, remaining unsecured debt will be discharged.
Chapter 13 opens up certain options that are not available in the Chapter 7 process. One of the most common is eliminating second mortgages. This is possible when the amount you owe on your first mortgage exceeds the value of the house. We will assist with this process.
As you make your monthly Chapter 13 payments, you will be scrutinized by the trustee to some extent. Any major purchases or sales will need to be cleared with the trustee first.
In some cases, further financial hardships happen during the Chapter 13 process. A Chapter 13 may need to be converted to a Chapter 7. We can assist if this becomes necessary.
Contact Us to Learn More About the Chapter 13 Process in Arizona
Every case is different, so it is important to discuss your situation with a Tucson bankruptcy attorney before making a decision. Contact us to discuss your options.
