The Specifics on Phoenix Chapter 13

A single person or a sole proprietor is eligible to file for Phoenix Chapter 13 bankruptcy. Chapter 13 results in the repayment of all of your debts over a specific time period, usually 3-5 years. Chapter 7 Bankruptcy, often called “liquidation bankruptcy”, stays on your credit report for 10 years after you have filed. Chapter 13, which is actually more of a restructured payment schedule, will remain on your credit history for seven years. Bankruptcy, however, is something that you will always have to account for. Any future loan and job applications will inquire if you have filed for bankruptcy. Lying about past bankruptcy cases is a criminal offense. The courts make their will decide to give you your bankruptcy depending upon whether or not your income is more or less than the average income for people in your state. If your income is more the repayment will probably be for a term of five years. People with mortgages they want to salvage so that creditors don’t foreclose their homes are a good candidate for this kind of bankruptcy. Also,rnpeople who are forced to pay alimony or student loans, but don’t apply for Chapter 7 bankruptcy will benefit from the loan rescheduling process of Chapter 13 bankruptcy. If you wish to file for Chapter 13 bankruptcy, you'll need to prove to the court that you have a stable salary and disposable income. The process begins when your lawyer files a petition on you/your company's behalf in bankruptcy court. After that happens, creditors are no longer lawfully able to collect money that your business owes them until the bankruptcy court tells them so. During this period rnyou will have the chance to consider a restructure program to pay back your debts and address your financial problems. A trustee is appointed to oversee your progress and communicate between yourself and the judge. Under usual Chapter 13 court proceedings, when you finally complete the court-ordered repayment plan, any unpaid unsecured debt of yours will be discharged. If you think you qualify to file for Phoenix Chapter 13 bankruptcy, your first step is consultation with a legal professional.