Understanding How Chapter 13 Bankruptcy Works

If you are facing serious debt and are considering filing for bankruptcy, you may have a number of questions about the chapters available to you and the respective benefits of each. Generally speaking, there are two main options available to private citizens. One of these options, Chapter 13, is a restructuring form of bankruptcy, and allows the filer to pay off his or her debts over time.

To learn more about whether or not you qualify for a Chapter 13 bankruptcy, please contact the Arizona bankruptcy attorneys of the Harmon Law Office, LLC today by calling 480-829-0494.

Understanding Chapter 13

The primary benefit of a Chapter 13 filing over a Chapter 7 filing is that it allows the filer to potentially stop foreclosures and to retain possession of property. In order to file for Chapter 13, you must meet the following criteria:

• You must have unsecured debts of no more than $360,475 and secured debts of no more than $1,081,400
• You must agree to repay your debt over the span of 3-5 years
• You must have a steady income in order to make the payments

In addition, you must provide the courts with an in-depth Chapter 13 repayment plan, which details how you are going to repay your creditors and when.

Contact Us

If you or someone you love is considering filing for bankruptcy and would like to learn more about whether Chapter 13 might be the right solution, please contact the Arizona bankruptcy attorneys of the Harmon Law Office, LLC by calling 480-829-0494.