How a Chapter 13 Bankruptcy Attorney Can Help You Avoid Costly Mistakes

If you are experiencing financial difficulties, bankruptcy may be a viable option to help you get your finances back on track. However, filing for bankruptcy is not a process that anyone should take on their own; hiring an experienced Phoenix Arizona Chapter 13 Bankruptcy Attorney can make the difference between a successful and unsuccessful case.

A Chapter 13 Bankruptcy Lawyer can help you determine whether you qualify for bankruptcy, draw up a repayment plan and help your creditors understand what to expect in terms of payment and interest rates. They can also help you avoid costly mistakes that could lead to more trouble down the road.

The most important step in determining your eligibility for Chapter 13 is to consult with an experienced lawyer who can explain the process. Then, he or she will calculate your income and expenses, which are then used to determine your debts and how much money you can afford to pay them under the Chapter 13 repayment plan.

Your lawyer will work to establish a monthly budget that will allow you to pay your debts under the plan and still have enough left over to meet all of your living expenses. This is a process that can be extremely complicated and can require considerable knowledge of the law.

You and your lawyer will develop a repayment plan that is submitted to the court for confirmation. This plan is designed to repay unsecured and secured debts over three to five years. The goal is to restructure these debts and give you some breathing room, so that you can continue to pay them off in the future.

In addition to your debts, you will be required to submit documentation of your income and expenses. This includes pay stubs, bank statements and other proofs of income.

Once the court confirms your plan, you will begin making payments to the trustee and your creditors. This will allow you to catch up on any past due mortgage or car payments and pay off unsecured debts in full.

If you want to save your home, you can choose to file for bankruptcy under Chapter 13, which allows you to retain your home while repaying your debts over time. This is a more flexible and affordable option than Chapter 7 bankruptcy, which requires the sale of some of your assets to pay off your debts.

Chapter 13 is also a good option if you are facing a foreclosure, since it allows you to stop the foreclosure and catch up on any payments that have already been missed under a mortgage modification program. You can also use the Chapter 13 plan to pay off any liens that are attached to your home, which will lower your overall monthly mortgage payments.

The best way to find out whether you qualify for Chapter 13 is to meet with a qualified lawyer and attend a free consultation. These meetings will provide you with all of the information that you need to decide if bankruptcy is right for you.