Gilbert AZ Bankruptcy Lawyers; How AZ Bankruptcy Works
Though it is not right for everyone, bankruptcy can be an extremely effective way of dealing with credit card debt, medical bills, unsecured and secured loans, lines of credit and other financial obligations that are not affordable.
Gilbert AZ Bankruptcy lawyer, Brian Blum, can answer your questions about debt and bankruptcy. Contact the Rosenstein Law Group to set up a consultation with Brian.
What Happens in a Bankruptcy? What Type of Bankruptcy Will Work for Me?
Bankruptcy is a legal process governed by federal law. When individuals or organizations file for bankruptcy in court, they get legal protection from specific debts named in the filing. When a debt has been included in a bankruptcy, the creditor is ordered to stop collection efforts on that debt.
The most common forms of personal bankruptcy are Chapter 7 and Chapter 13. Chapter 11 reorganizations are also available to individuals and married couples, but in most situations the same goals can be achieved at less expense under Chapter 13. In some cases, however, Chapter 13 is not available due to the amount of debt, and the more costly Chapter 11 is the option available.
Chapter 7 bankruptcy quickly gives the filer a fresh start by effectively erasing unaffordable debt. A means test, which measures a person’s ability to pay his or her debts, is required to qualify for Chapter 7 in most cases. Not everyone can qualify for this type of bankruptcy, and those who do qualify may be required to liquidate certain assets in the process. When appropriate, though, Chapter 7 can be an excellent way of discharging debts like credit cards and personal loans.
Chapter 13 bankruptcy provides the same fresh start as Chapter 7, but is different from Chapter 7 in that a plan is made to pay off some or all of the debts in a way that the debtor can afford. These repayment plans usually span a three to five-year period. A trustee is appointed to review the plan, make recommendations to the court on the plan’s compliance with the law, and to oversee the monthly payments. Since Chapter 13 filings are more complicated and lengthy affairs, the legal costs involved are higher.
Talk to experienced Gilbert AZ bankruptcy attorneys to find out if bankruptcy could be an option for you.
Contact the Rosenstein Law Group, to set up a consultation with Gilbert AZ bankruptcy attorney, Brian Blum.
We are a debt relief agency. Our attorneys help people file for bankruptcy relief under the Bankruptcy Code.
