Most of our Arizona clients who have a choice in the matter would prefer to file a chapter 7 bankruptcy because it is usually faster and less expensive than a chapter 13 (because they will not have to make monthly payments to creditors on at least a small portion of their debt).  But there are times when it would be advisable to file a chapter 13 even if you have the option of filing a chapter 7.  For example, in a chapter 13 you can remove a second mortgage in certain circumstances.  Also, in a chapter 13 you can sometimes have better options for dealing with tax debt and other types of situations.  Usually, however, when an Arizona client files a chapter 13 bankruptcy, it is because:  he/she either has too much income and therefore does not qualify for chapter 7; he/she does not want to lose particular types of property that would be seized in a chapter 7; and/or he/she wants to catch up past-due payments on a mortgage or car loan in order to prevent foreclosure/repossession.  Indeed, depending on your future financial prospects, an Arizona chapter 13 case can enable you to save your home from foreclosure and even remove a second mortgage in certain situations.

Chapter 13 Bankruptcy Lawyers in Arizona

Also, if you are a real estate investor, you may be able to reduce the mortgage balance on your investment properties to match the value of those properties.  You must be careful, though, to not exceed the debt limits in the chapter 13 case.  This sometimes happens when the person is a business owner or real estate investor, as the total amount of their unsecured and/or secured debt could require them to file a chapter 11 in order to reorganize their debt.

At Thomas Law Office, we will fully explain the options you have with regard to the kind of Arizona bankruptcy case you can file.  If you qualify for a chapter 13 bankruptcy and filing a chapter 13 case in the Arizona bankruptcy court would be a good option for you, our attorneys will skillfully structure your case in such a way as to obtain maximum benefit for you.

Contact Our Chapter 13 Bankruptcy Attorneys

A chapter 13 case in Arizona can be as short as three years or as long as five years, depending on whether you are eligible for a less than five year repayment plan.  However, rarely does a person filing a chapter 13 have to repay most or all of their debt. Most people who file chapter 13 cases in Arizona, as elsewhere in the country, typically only pay a very small percentage (less than half) of their debt to their creditors.  The remaining part of their unsecured debt is usually erased at the end of the chapter 13 case.  Again, our attorneys will carefully explain during your consultation what you can expect to achieve from your Arizona chapter 13 case.