Chapter 13 Bankruptcy Lawyer Serves Clients in Payson and Yuma, AZ
Trustworthy guidance for Arizonans coping with unmanageable debt
If you have a steady income but still find yourself with crushing debt, Chapter 13 bankruptcy may be the best way to hold onto key assets, like your home, and improve your financial footing. At the Law Offices of Phil Hineman, P.C., we work closely with you to develop the most appropriate debt relief strategy for your circumstances. For many clients, Chapter 13 bankruptcy is the best way for them to take control and rebuild their lives over a few short years. We’ve helped numerous clients like you draft a manageable repayment plan, win court approval, and discharge the lion’s share of their debt. If you decide Chapter 13 is right for you, you can trust our firm to provide reliable guidance that gives you all the advantage under the law.
What is a Chapter 13 bankruptcy repayment plan?
Unlike Chapter 7 bankruptcy, which is a quick discharge of eligible debt, Chapter 13 is a reorganization of your debt into lower monthly payments, which you make for the length of your repayment plan. Once you’ve complete those payments, your remaining eligible debt is discharged. That makes Chapter 13 a better option for consumers who have secured loans for assets they want to retain, like their home.
With Chapter 13 bankruptcy, you work closely with your attorney to create a repayment plan based on your monthly disposable income. You present your plan to the court, and your creditors can respond before the court issues a decision. Once the court approves, your plan will run for three to five years, depending on your income. After you complete your plan, the court discharges your remaining eligible debt. Because your monthly payments under the plan are lower than your current monthly expenses, you can catch up on mortgage arrears if you want to save your home.
Do you qualify for Chapter 13 bankruptcy?
Chapter 13 bankruptcy often comes about when people with a steady income suffer a major setback, such as a prolonged illness to a family member or the failure of one or more large investments. To qualify for Chapter 13, you must have a reliable source of income that would allow you to complete the repayment plan, so your creditors would receive at least as much as they’d get in a Chapter 7 bankruptcy.
When you turn to the Law Offices of Phil Hineman, P.C. for debt relief solutions, you work directly with an accomplished bankruptcy lawyer. Mr. Hineman has more than 25 years of experience helping people in your situation, so he can provide an abundance of information on the law, the process, and how each applies to your specific circumstances. You can feel confident that the steps you are taking will bring you closer to your goals for life after bankruptcy.
Using the bankruptcy process to protect your property
As soon as you file Chapter 13 bankruptcy, the court issues an automatic stay prohibiting your creditors from contacting you in an effort to collect. The automatic stay will stop foreclosure, repossession, wage garnishment, and creditor harassment. As long as your payments on your house and your car are current or you catch up by the time you file bankruptcy, you should be able to keep these items.
Chapter 13 also offers two unique options to help you catch up with car and house payments: cramdowns and scrape-offs. They work as follows:
- Cramdowns — If you have owned your vehicle for more than two-and-a-half years and you owe more on it than it’s worth, you may be able to force the creditor to refinance at the current value of the car.
- Scrape-offs — If your house is currently worth less than the amount of the first mortgage, you may be able to eliminate a second mortgage if you have one.
Mr. Hineman gives you individualized attention, so if these legal protections apply to your circumstances, you receive every advantage under the law.
Contact our Yuma law firm for a free Chapter 13 bankruptcy consultation
The Law Offices of Phil Hineman, P.C. has helped residents in Yuma, Payson and the Phoenix metro area protect their assets through Chapter 13 bankruptcy for more than 25 years. Call 928-257-1155 or contact us online to discuss your options with an accomplished bankruptcy lawyer. We offer flexible appointments, even in the evening and on weekends, as well as free phone consultations for our bankruptcy clients.