If you’re living in Phoenix, Chapter 13 Bankruptcy is one solution to resolve your excessive debt. If you find that you have overextended yourself can barely afford to meet your monthly minimum payments, then it is time to make some decisions. It is time to take control of your debt, rather than your debt controlling you.
When your bankruptcy attorney petitions the court with your Chapter 13 bankruptcy, the court generally orders a protection of the automatic stay. This court order stops further collection activity on your accounts. If you are experiencing any of the following situations, Chapter 13 bankruptcy may be the answer:
•If your wages are currently being garnished
•If your home is in foreclosure or facing foreclosure
•If your assets are in the process of repossession
•If you are facing a debt lawsuit
•If you are paying high interest rates on credit card debt
Chapter 13 bankruptcies allow you to restructure your debt into an affordable monthly payment plan and maintain possession of your assets. The bankruptcy court establishes the amount of disposable income you have monthly and calculates the amount of past due debt you owe. Then the court sets up a payment plan that generally ranges from 36 to 60 months for your past due debts. The court prioritizes your secured debts to be paid before your unsecured debt. You make monthly payments on your past due debts, while at the same time continuing to make your current payments.
If you have had a financial setback or short term job loss, then filing Chapter 13 bankruptcy can provide you the means to retain your assets and pay your creditors back. If you find yourself overwhelmed with debt, contact a local Phoenix Chapter 13 attorney for your bankruptcy options.
Image via Wikipedia
