How a Chapter 13 Bankruptcy Attorney Can Help You Eliminate Unsecured Debt in Chapter 13

If you’re feeling overwhelmed with creditor harassment, wage garnishment, and other legal actions, it might be time to consider filing for Chapter 13 bankruptcy. This type of bankruptcy is also known as a reorganization bankruptcy because it allows debtors to keep assets while they repay their debts over a period of three to five years under court supervision.

You should consult with a Phoenix Chapter 13 Bankruptcy Attorney for a free consultation and help to determine whether or not you are eligible for this form of bankruptcy. In addition to being able to provide assistance with filing and defending your case, a lawyer can also help you create a payment plan that makes sense for you. Visit https://www.phoenixfamilylawyers.net/chapter-13-bankruptcy-attorney/ to contact our best attorneys in Phoenix Arizona.

The best Chapter 13 Bankruptcy Attorney will be familiar with the bankruptcy process and can guide you through the entire process, from preparing your paperwork to filing for bankruptcy in court. This attorney will ensure that all the details are correctly and completely completed, and that you get the best results for your circumstances.

Your Phoenix Chapter 13 Bankruptcy Attorney will work with you to create a payment plan that will fit your needs and help you stay current with creditors while keeping your quality of life intact. This attorney will take into account your income, expenses, and any other financial considerations.

A Chapter 13 repayment plan is created and submitted to the trustee for review. The plan must show that you have sufficient disposable income to pay all unsecured creditors during the repayment period.

During this period, you will be required to make regular payments to your bankruptcy trustee who will then disburse these funds to the creditors according to their respective schedules. If you fail to make your payments, your bankruptcy trustee may seek repayment from you in a number of ways, including seeking a temporary or permanent reduction in the amount of money you owe to your creditors.

If your mortgage is more than the value of your home, a bankruptcy attorney can assist you in removing a second mortgage from your property, which will reduce the debt that you owe on it. This can be done by a process called “stripping” the lien.

Another method of eliminating secured debt in Chapter 13 is a procedure called “cramming down.” This is often used with vehicle loans, but can be applied to any other debt that has a high balance. A debtor can propose to the lender that they will only pay the current fair market value of a car, rather than its original purchase price or outstanding balance.

In some cases, a creditor can object to the proposal, which will require you to submit a modified proposal to the court. This can be difficult and may take longer than expected, but it is possible to have the objection dismissed.

Once your Chapter 13 bankruptcy is confirmed, you can start repairing your credit score. You can do this by avoiding new debt and making timely payments on existing ones.