Chapter 13 Bankruptcy – Mesa Bankruptcy Lawyer

Chapter 13 bankruptcy offers an alternative means for individuals and sole proprietors to obtain relief from oppressive, unmanageable debt.  Chapter 13 is commonly known as “restructuring bankruptcy” because it allows debtors to essentially restructure their debt into a manageable plan with better terms, such as lower interest.  Individuals will be required to repay some or all of their debt if they elect to file for Chapter 13 bankruptcy, but the repayment plan created will be one that is manageable with your income level.  As such, Chapter 13, which often does not require the sale of any assets, provides a viable option for debtors to escape the collection cycle and begin on a path to financial recovery.

The experienced Chapter 13 Mesa bankruptcy attorneys at Ariano & Associates, PLLC, will thoroughly assess your circumstances to determine whether Chapter 13 is right for you.  Once you elect to proceed with a Chapter 13 bankruptcy, our skilled attorneys will seamlessly guide you through this often complex process. At Ariano & Associates, PLLC, we pride ourselves on excellence of legal services, with 24/7 availability.

Providing an Alternative to Chapter 7

Chapter 13 bankruptcy allows individuals and sole proprietors to pay off their non-dischargeable debt over a period of three to five years.  It allows you to keep most if not all of your property, so long as you meet the agreed to monthly payments to the court-appointed trustee.

There are several reasons why people in Mesa elect to file for bankruptcy under Chapter 13. This form of bankruptcy can help those who:

  1. Are ineligible for Chapter 7 bankruptcy—the means test utilized in Chapter 7 bankruptcies excludes many higher wage earners who are nonetheless struggling with debt.  Chapter 13 provides the ideal alternative as it will not exclude those who make over the median state income.
  2. Want to save their assets—certain assets will be seized and sold in a Chapter 7 bankruptcy.  Under Chapter 13, you will generally be able to keep those assets that matter most.  Further, if you are a risk of foreclosure on your home, filing for Chapter 13 will halt the foreclosure process and allow you to enter into a repayment plan to salvage your mortgage.
  3. Hold debts that cannot be discharged in Chapter 7—not all debts are dischargeable under Chapter 7, including student loans and child support; a Chapter 13 repayment plan will ease the burden on these debts.

An Overview of Chapter 13 Bankruptcy

The path to a Chapter 13 bankruptcy begins with an honest assessment of whether this financial tool is suitable for you.  Chapter 13 requires debtors have sufficient steady income to enter into the repayment plan, and has caps on the amount of unsecured as well as secured debt allowed.  An experienced bankruptcy attorney can help you determine the best course of action.

Debtors who file for Chapter 13 will submit a repayment plan detailing how they intend to repay their debt over the next three to five years.  Your bankruptcy attorney will play a vital role in creation of this intricate plan, ensuring that it is financially feasible for you and your family.  The written draft of the plan will be submitted to the court for approval.  Repayment will begin 30 days after your case is filed.  Creditors will be required to follow the plan and cannot attempt to collect any debts outside it.  Chapter 13 will require your devotion to complete repayment.

Ariano & Associates, PLLC: Guiding You Through a Successful Chapter 13 Bankruptcy

Chapter 13 is a complex process that requires the assistance of a knowledgeable, experienced, and dedicated bankruptcy attorney.  The Mesa bankruptcy law firm of Ariano & Associates, PLLC has an unparalleled reputation for excellence of legal services.  We pride ourselves on skillfully guiding each of our clients through the bankruptcy process to their brighter financial future.