A Fresh Start: Chapter 7 And Chapter 13 Bankruptcy
The decision to file for bankruptcy is always hard. But it may be the best or only recourse if home foreclosure is looming or your debts have accumulated beyond an ability to pay back those creditors.
Free Initial Consultation • Payment Plans Available
The bankruptcy lawyers of Faith, Ledyard & Faith, PLC, provide solid counsel and representation in consumer bankruptcy. Our law firm, with locations in Avondale and Surprise, Arizona, represents individuals and families in the West Valley, Greater Phoenix and statewide.
Call us today at 623-806-8994 to explore your debt solutions.
Stop Foreclosure, Repossession And Creditor Harassment with Chapter 7 & 13
Bankruptcy is a legal proceeding to declare your inability to pay consumer debts and obtain relief from creditors. The two most common types filed by individuals are Chapter 7 & 13:
A Chapter 7 bankruptcy liquidates certain types of assets to pay creditors and is generally best for anyone with large amounts of unsecured debt and little income. Most individuals have to give up very little, if any, assets or property when filing a Chapter 7. An experienced bankruptcy attorney will help you determine your options prior to filing a Chapter 7 bankruptcy to protect your assets to the maximum amount allowed under the law and give you a fresh start. Keep in mind, a Chapter 7 can at most delay a foreclosure but will not bring past due house payments current. If you are facing a foreclosure and want to keep your home, a Chapter 13 is a better option.
A Chapter 13 requires you to make a monthly payment to a Trustee for up to 5 years. The monthly payment can be as low as $100.00 per month depending on your circumstances. A Chapter 13 allows you to catch up on past due house payments to stop a foreclosure, strip a 2nd mortgage from your home, pay off your vehicle for less than what is owed, catch up on past due child support or spousal maintenance obligations, pay off tax debts, and keep non-exempt assets without liquidating them. A common misconception is that a Chapter 13 bankruptcy requires you to repay everything to your unsecured creditors. The reality is, most Chapter 13 bankruptcies repay very little to unsecured creditors. Filing a Chapter 13 with the help of an experienced attorney can help you get back on your feet in a better financial position.
The filing of either a Chapter 7 or a Chapter 13 provides immediate relief from creditors attempting to foreclose, repossess property or garnish wages and stops the harassing phone calls and all other collection actions.
Contrary To Myth, You Do Not ‘Lose Everything’ By Declaring Bankruptcy
Bankruptcy eliminates your debt and provides you with a fresh start or the chance to reorganize your financial situation to receive relief from your creditors. You should not fear losing your:
- Household furnishings/appliance
- Retirement accounts (pension, 401(k), Roth IRA)
- Life insurance plans
- Tools of a trade or profession
- Engagement and wedding rings
This is not an exhaustive list. Generally, most property is protected, but you need an experienced attorney to ensure you take full advantage of the exemptions offered under the bankruptcy code. An experienced attorney will review your financial situation and determine the options available to you.
Protect Your Business or Real Estate Investment Portfolio with Chapter 11 Bankruptcy
Chapter 11 is typically filed by businesses that have accumulated excessive debt. A Chapter 11 allows a struggling business to reorganize finances, eliminate some debt, and keep the business operating, rather than file a Chapter 7 which requires liquidating business assets and closing the business. Chapter 11 allows a business the opportunity to renegotiate contract terms, interest rates and the amount repaid to creditors through direct negotiation with the business creditors. With Chapter 11, you continue to operate your business while the court oversees the reorganization of its debts and contractual obligations.
In some circumstances, an individual might need to file a Chapter 11 if they do not qualify for a Chapter 13. A Chapter 11 can allow an individual to modify the mortgages on certain real estate investments to more favorable terms.
Save Your Family Farm with Chapter 12 Bankruptcy
Chapter 12 is geared specifically toward small family farms. If eligible, a Chapter 12 allows a family farm to reorganize in a similar fashion as a Chapter 13. Reorganization under Chapter 12 generally provides for the repayment for all or some of your debts over 3 years. In certain situations, the court will extend the Chapter 12 reorganization out to 5 years.
If You Need Bankruptcy, Our Firm Is Here For You
Regardless of the financial hardships you are experiencing, we can help. We offer a free initial consultation, and payment plans are available. Contact us at 623-806-8994 to arrange a consultation. If it is not convenient to meet at our Avondale office or Surprise office locations, we can assist clients by phone and process all bankruptcy documents by mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.