Our Tempe attorneys at Stone Rose Law have assisted many Tempe residents preserve their home while eliminating burdensome unsecured debt. The process of filing for Chapter 13 bankruptcy relief is more complex than seeking Chapter 7 relief so it is very important to seek the advice of an experienced Tempe bankruptcy attorney. Unlike a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy does not permit someone to simply eliminate unsecured financial obligations. The Chapter 13 bankruptcy process involves developing a repayment plan that will allow one to pay off obligations over an extended payment period of 3 or 5 years. The type of Tempe resident that is likely to seek Chapter 13 relief will either do so to prevent foreclosure on one’s family home or because the person is ineligible to file a Chapter 7 Bankruptcy.
Filing a Chapter 13 Bankruptcy is extremely complicated because developing a feasible Chapter 13 payment plan that meets the requirement of the Trustee while being economically affordable can be extremely challenging. The plan must provide detailed calculations regarding the amount to be paid to all creditors under the plan. Arrearages (i.e., past due payments and late fees) to secured creditors and certain types of other unsecured debts must be fully paid under the 3 or 5 year term of the plan. Common types of priority obligations include such items as some tax obligations, wages owed to employees and child and spousal support obligations and arrearages.
A Chapter 13 bankruptcy does not extinguish credit card obligations, unpaid hospital bills and other unsecured debt but permits you to make payments toward these debts over the 3- or 5-year Chapter 13 plan. However, the plan only must allow for payments to non-priority unsecured creditors from disposable income after your living expenses, secured debts and priority obligations have been paid. This means that you may be pay minimal amounts toward unsecured non-priority obligations if your plan is constructed correctly and depending on your income level. Any balance that remains on these unsecured non-priority obligations at the end of the term are discharged as in a Chapter 7 bankruptcy.
This means that the way you put your plan together matters. A poorly conceived plan may mean that you end up paying thousands of dollars more to non-priority unsecured creditors than you would have paid under a plan that was artfully crafted. Our experienced Tempe bankruptcy attorneys will carefully prepare your Chapter 13 Bankruptcy with the goal of developing a plan that will be acceptable to the Trustee while minimizing your plan payment amount as well as the amount paid to unsecured non-priority debts.
Once all Chapter 13 plan payments have been made the plan is considered successfully completed and the debtor receives a Chapter 13 bankruptcy discharge. After the discharge, all secured debts including payments on one’s home and car must be kept current. However, any unpaid balances on non-priority unsecured debts are discharged relieving the legal obligation to pay these debts. The successful completion of the Chapter 13 Bankruptcy will also mean that your mortgage payment arrearages have been brought current. Our experienced bankruptcy lawyers have helped many residents in the Tempe area protect their homes from foreclosure and improve their standard of living by reducing the amount of their totally monthly obligations
At Stone Rose Law, our lawyers are dedicated to delivering personal attention and consistently aspire to provide the highest quality legal services. If you are staring at a stack of foreclosure notices or unpaid bills and feel like there is no solution, our Tempe bankruptcy law firm may be able to help you reclaim your financial future. Our attorneys have helped many Tempe families during their most desperate financial times. We recognize debilitating pressure that a serious financial crisis can inflict on a family and offer representation in Chapter 7 and Chapter 13 bankruptcies based on commitment, empathy and respect. We provide our Tempe client with practical lasting solutions as well as clear and concise bankruptcy legal advice so call Stone Rose Law today at 480-498-8998 today to begin re-building for tomorrow today.