Phoenix Bankruptcy Attorney
Did You Know?

Bankruptcy is an option that gives relief to both businesses and individuals with severe financial difficulties. It provides a structure which allows the debtor to keep some personal property while left over debts are discharged. This is usually true, with the exception of potential debts like domestic support and most tax debt.

Chapter 7

When someone says they are declaring bankruptcy, in general they are referring to chapter 7 bankruptcies. Declaring chapter 7 liquidates personal liability, wiping out debts and other obligations. Exceptions to this may include tax debts and child support. Sometimes tax debts that are less recent can be cleared as well. As with every case, consult with a Phoenix bankruptcy attorney to better understand your options.

In the event that you file for Chapter 7 bankruptcy, the court will issue what is known as an “Automatic Stay”. This keeps collectors, including collection agencies and the IRS, from contacting you in any attempt to collect on debts. This should keep your wages from being garnished, as well as putting a stop to harassing phone calls or even the possible repossessing your car. In general, as a Phoenix bankruptcy attorney may tell you, creditors take this filing seriously. It should effectively keep creditors from contacting you in any way.

You can keep some property with Chapter 7. There are two exemption sets. Both sets cover items like automobiles, business equipment, furnishings and jewelry. One major distinction is with respect to home equity. Since these laws are inherently complex, and since bankruptcy is a serious decision, it is always better to meet with your Phoenix bankruptcy attorney to understand these points as they relate to your actual case.

Chapter 13

Chapter 13 Bankruptcy cases, are commonly referred to as "wage earner plans", and is what some unscrupulous persons advertise by saying, avoid bankruptcy, file a wage earners plan or a debt consolidation, implying that it is a non bankruptcy procedure. Of course they aren’t being truthful.

Chapter 13 is also known as a “wage earner plan”. In general, this type of bankruptcy is designed to help you reorganize your difficult financial issues. It can allow you to stop foreclosures and wage garnishment. It may also be helpful for dealing with repossessions and tax levies. The court will often set up an enforced repayment agreement to repay secures debts. Very generally, this restructuring may be stretched out over 3 to 5 years. This tends to reduce monthly payment to a level that is more manageable.

If someone’s budget cannot cover full repayment of unsecured debt, it’s sometimes possible to pay back less than 100% of what is owed. Again, this is a complex area and each case will be unique; a Phoenix bankruptcy attorney can guide you to the right resolution.

Chapter11

Chapter 11 is like chapter 13 filing in many ways, although the former is considered more flexible. Chapter 11 is designed with corporations and large business in mind. This filing is often used to stretch repayment out for many years. This may include repayment to the IRS.

Chapter 11 encompasses a varied array of cases, and these cases are often complex and unique. Each case will be very individual, often involving a large degree of legal complexity.

Consult With Your Phoenix Bankruptcy Attorney First

In the final analysis, a Phoenix bankruptcy lawyer can advise you on the particulars of your case. It is of course important to educate yourself on the basics of bankruptcy law in general, but meeting with an experienced attorney or law firm is crucial to making a truly informed decision.

Return from Phoenix Bankruptcy Attorney To Lawyer Home