Gilbert Arizona Bankruptcy Law Attorney Carlos Brown – Chapter 7 – Chapter 13 – Bankruptcy Relief – Stop Harassing Creditor Phone Calls. Contact our law firm to schedule a free consultation to discuss your debt relief options.
Filing For Debt Relief With Bankruptcy Protection
Our law firm knows how overwhelming financial burdens are. Many are threatened by wage garnishments and are constantly harassed by creditors who want to collect money that people do not have. It is a difficult position to be in when the incoming salary is not enough to meet the outgoing responsibilities. At Carlos Brown Law, we want to help make financial problems a thing of the past. There is a way out of debt. By filing a petition for bankruptcy, the court’s protection will stop the madness.
Bankruptcy Filing For Debt Relief
Those who look to our law firm for help often have dealt with an auto repossession, civil judgment, garnishment or lien. Dealing with financial problems can also be troublesome. However, there are two different chapters that the bankruptcy court offers to help. Chapter 7 is also a complete liquidation of the debts. Chapter 13 is a debt reorganization plan. As soon as a petition is filed in court, the debtors will be under the hedge of protection the court offers. We often encounter people who are not sure the type of bankruptcy that they need to file. We determine the chapter through “The Means Test.”
Understanding The Means Test
Several years ago, the Court changed the laws changed regarding debt relief. The changes were put in place to stop the abuse of the system. One of the changes made was that to file for the court’s protection, a person must complete a financial counseling course. The goal is to stop people from making the same mistakes again. To thwart repeat filing, the time frame that a person can file again has been altered. A complete liquidation can only be filed once every eight years. The Means Test is another part of those changes.
The Means Test is a simple examination that takes the incoming wages and subtracts it from the outgoing debt. The test also allows generously for household expenses, entertainment, clothing, food, insurance, and all the other bills that families routinely pay. We take the calculations from this worksheet to determine if there is any disposable income. When there is money left over after all the obligations have been met, that person must file a debt reorganization plan. If there is no disposable income or the final number is negative, then the person will be able to have a fresh start. They will qualify for debt relief through a complete liquidation.
Filing A Chapter 7
Both chapters have their advantages and disadvantages. The bankruptcy court will allow an individual to use reaffirmation to keep a car or other secured debt. They can “reaffirm” the debt and continue to make the payments. In a complete liquidation, the courts limit how many assets a person can keep. In addition, anything over a certain dollar amount must be surrendered to the court. The asset will be sold and used to pay creditors. Usually, people who are in the position to file for a liquidation do not have any assets that are taken and sold.
In a chapter 7 bankruptcy, the court wipes away all the debts. A person is then given a fresh start with a clean slate. From Apache Junction to Peoria, many people in Maricopa and Pinal counties have filed this chapter with success. Once the petition is filed in court, the individual or couple immediately has the courts protection. Any auto repossessions or a civil judgment will be put on hold. An automatic stay is placed on all collection activities. If a creditor wants to continue to collect, they must file a motion in court to have the stay lifted. This is commonly seen when a lender wants to continue with a foreclosure or repossession.
The 341 Meeting of Creditors is a session where the debtor must face a trustee. Though it is a great source of anxiety for many, we are always right there helping through this difficult process. Many clients in Phoenix, Chandler, Tempe, and beyond have found that it is a lot easier than they anticipated. Any lender that wants to dispute the discharge of their debt can come to the meeting. Fortunately, not many creditors show up for these sessions, especially when they have unsecured debts. The trustee will ask many questions in an effort to find any nonexempt property. These assets will be sold to repay general unsecured creditors. This meeting will be held six to eight weeks after filing the petition. The actual discharge will come about six months after the initial filing.
Filing A Chapter 13
Many people in Maricopa County and Pinal County, elect to file a reorganization plan. When there is disposable income, a repayment term is created and submitted to the court. The court must approve the proposed plan. People who elect to file a Chapter 13 usually do so to pay back their taxes through the plan interest and penalty free, or to pay past due amounts on their mortgage. When we file your case in court, we also submit a proposed plan of repayment for approval. The creditors and the trustee will have a couple months to review it.
Objections can be filed to try to get a person to pay more, but the debtor only pays what they can afford. It also takes three to five years to pay back the debts and complete the terms of the reorganization. At the end of that term, the individual will receive a discharge of their debts. The amount repaid depends on the person’s income. Not all debt needs to be repaid.
Dealing with bankruptcy filing and reaffirmation can be overwhelming. We want to help those living in and around Maricopa County. We service clients living in the Phoenix Metro Area as well as Pinal County, including the following cities: Gilbert, Chandler, Tempe, Apache Junction, Casa Grande, Florence, Phoenix, Peoria, San Tan Valley, Queen Creek, Mesa, Scottsdale, Glendale, Coolidge, Avondale, Laveen, Maricopa.
Those who have received letters of garnishment, a threat for auto repossession and warning of a lien should also take action. As a knowledgeable law firm serving Maricopa County and beyond, Carlos Brown Law wants to help. Call today to schedule a consultation to see how bankruptcy filing can give you a fresh start!