The Mesa attorneys of Stone Rose Law have provided financial relief to many struggling with unmanageable debt and/or pending foreclosure proceedings through the effective use of a Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy is far more complex than most simple Chapter 7 Bankruptcies, so it is imperative to seek legal advice if you are considering filing a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy entails developing a repayment plan over the course of a 3- or 5-year period to repay all of your secured debt and some portion of unsecured debt. There are two basic scenarios where a Chapter 13 Bankruptcy will make sense. One is if you have unpaid mortgage payments and are trying to keep your home while the other is if you cannot qualify for a Chapter 7 Bankruptcy under the means test.
While the document preparation for any bankruptcy is complex and lengthy, this is especially true for a Chapter 13 Bankruptcy where the complete packet can reach 50 pages in length. Not only must you provide all of the financial information regarding your income and financial obligations that are required by a Chapter 7 Bankruptcy, but you must prepare a 3- or 5-year repayment plan based on income level to be approved by the Bankruptcy Trustee. The plan must provide for full repayment of your secured debt including your mortgage and any financed vehicles that you are keeping as well as certain priority debts. Priority debts that must be repaid in full include such items as family court obligation for child support and spousal support, unpaid wages to employees and some tax obligations.
Unlike a Chapter 7, you also must repay some if not all your unsecured debt in a Chapter 13 Bankruptcy. This requires a careful analysis of your secured priority obligations and living expenses to determine what disposable income is available each month to pay toward unsecured financial obligations like credit cards. The lower the calculated plan payment the better because this makes it easier to have the Trustee approve the plan and means that you will be obligated to repay less to unsecured creditors.
Strategic considerations in a Chapter 13 Bankruptcy plan can be very important. The Trustee must determine that you have sufficient income to make the plan payments and keep your current mortgage payment current while still affording basic living expenses. If the Trustee is not convinced that your income is sufficient to meet all these expenses, the Chapter 13 Bankruptcy plan may not be confirmed. One effective strategy our law firm may employ in certain situations is to file both a Chapter 7 and a Chapter 13 Bankruptcy in your Mesa bankruptcy case. If you are trying to keep your home but are behind on arrearage payments, we may use the Chapter 7 Bankruptcy to eliminate your unsecured debt. This means that when we file a Chapter 13, the Chapter 13 plan payment can be lower, which will make it easier to get your Chapter 13 repayment plan approved.
To receive a Chapter 13 Bankruptcy discharge in a Mesa bankruptcy, you must make all plan payments. If you successfully make your plan payments under your Chapter 13 payment plan, you will obtain a discharge on the balance of most remaining unsecured obligations. While it is better to seek legal advice from an experienced Mesa bankruptcy law firm when you are not far behind on your mortgage, our knowledgeable Chapter 13 Bankruptcy attorneys have helped clients obtain relief even when they are many months or even years behind on their mortgage.
At Stone Rose Law, our attorneys are committed to providing personal attention and strive to provide the highest quality legal representation in all Chapter 7 and Chapter 13 bankruptcy matters on behalf of clients in and around Mesa. We have provided a financial lifeline to many Mesa families during very dark times. We recognize the stress and fear that accompanies financial hardship and treat our clients with understanding, compassion, and respect. We offer reliable and easy to understand bankruptcy legal advice to those of Mesa so call Stone Rose Law today at 480-498-8998 today to see how we can help.