Phoenix West Valley Bankruptcy Attorney in Glendale Surprise and Peoria
Are you currently receiving seemingly endless calls from debt collectors? If so, it may be time to consider looking into bankruptcy protection. Unfortunately, the aggressive debt collection companies will not go away on their own. The interest on unaddressed debt will continue to pile up. Bankruptcy may be the answer.
Bankruptcy is a legal process that allows individuals and businesses in Surprise and Peoria to seek protection. It can be used to restructure debt payments, and in some cases, it can even be used to eliminate certain burdensome debt obligations. If you are having trouble paying your bills, the best time to look into bankruptcy is now. Do not let yourself slip deeper into the quicksand of debt. Please contact an experienced Surprise and Peoria bankruptcy lawyer who can review your case and help you explore your legal options today.
PERSONAL BANKRUPTCY OPTIONS
Two primary bankruptcy options are available to Arizona consumers:
Chapter 7 (Liquidation): Chapter 7 bankruptcy is known as a liquidation bankruptcy because the filing party’s liquid assets are generally used to repay debts immediately. In return, many of their unsecured debt obligations are discharged. Chapter 7 can be powerful. However, it is not available to all individuals. People who have incomes substantially above the Arizona median generally cannot apply for this type of protection.
Chapter 13 (Restructuring): A Chapter 13 bankruptcy is available to consumers of all income levels. It generally does not result in most debt being immediately discharged, though. Instead, the filing party is put on a payment plan. This plan will usually roll all qualifying debts into a single (far more affordable) payment. Once the payments are made, the remaining unsecured debt is discharged.
In order to determine which type of personal bankruptcy is right for you, you should consult with an experienced Surprise or Peoria bankruptcy lawyer. First, your lawyer will need to see if you qualify for Chapter 7 under the “means test.” Additionally, even if you do qualify, your lawyer will need to review your available liquid assets and types of outstanding debts (secured vs. unsecured) to determine if Chapter 7 offers benefits over Chapter 13.