Chapter 13 Bankruptcy Attorney in Arizona

A company will submit a petition to file for bankruptcy if it discovers that it is unable to pay back its financial obligations or make payments to its creditors in the foreseeable future. During this time, a petition in bankruptcy is submitted to the court requesting the same thing, and during this time, a tally is kept of all of the company’s outstanding debts, and those debts are paid out of the company’s assets, to the extent that the debts cannot be paid off in full from the company’s assets.

The myths surrounding the process of declaring bankruptcy in Phoenix are something that we have all heard, but none of them are true. The bankruptcy law was drafted to shield individuals like you from the potentially debilitating effects of debt. Filing for bankruptcy in Phoenix can provide you with a clean slate, allowing you to discharge most of your debts and preventing any further legal action, including home foreclosure. 

At Phoenix Fresh Start Bankruptcy Attorneys, we are bankruptcy lawyers who provide legal help to clients in overcoming challenging financial problems and emancipating themselves from challenging financial obligations. We have a lot of years of experience helping people get out of difficult financial situations. Get in touch with one of our chapter 7 bankruptcy attorneys or chapter 13 bankruptcy attorneys in Arizona  as quickly as possible to obtain any additional information about your financial issues. 

Why do I need a Bankruptcy Attorney in Phoenix, AZ?

 chapter 7 bankruptcy attorney arizonaFiling for bankruptcy entails more than simply completing bankruptcy forms. Bankruptcy counseling that you will receive from a bankruptcy lawyer in Phoenix can make a significant impact on the amount of property that you might be able to keep and the amount of debt that you might be able to pay off. Through pre-bankruptcy planning, a bankruptcy attorney in Phoenix may also be able to save you money or personal property. Pre-bankruptcy planning is an option. 

Although not all property is exempt, you might be able to convert the non-exempt property into an exempt property before you file your return, at which point you would normally be able to keep the majority of your assets. You may be able to take advantage of all the relief that the United States Bankruptcy Code offers with the assistance of an experienced Arizona chapter 7 bankruptcy attorney.

Justification for Changing Chapter 7 to Chapter 13

Chapter 7 is preferred by the majority of filers. It quickly eliminates eligible debt and does not require a Chapter 13 repayment plan, so it is easy to understand why it is so popular. Despite this, it may be necessary, either voluntarily or by court order, to convert to Chapter 13 after filing.

Conversion per Court Order to Chapter 13

If the court determines that you are ineligible for Chapter 7 bankruptcy, you will be required to convert to Chapter 13. The most common reason is a mistake on the Chapter 7 means test.

The means test is a complex mathematical formula used to determine eligibility for a Chapter 7 discharge — an order that eliminates debt. The means test determines whether you can make a reasonable monthly payment on your unsecured debts through a repayment plan. If you do not pass the test, you do not qualify for Chapter 7 bankruptcy. If you qualify, Chapter 13 bankruptcy conversion will be your most common option. Not everyone has enough income to repay Chapter 13 debts.

The court cannot force you to remain in a Chapter 13 case. You can ask the court for case dismissal.

Optional Conversion to Chapter 13

Changing from a Chapter 7 to a Chapter 13 bankruptcy could be in your best interest. Since you filed for Chapter 7 protection, your financial situation may have changed. You may have recognized that you will lose valuable property. Alternatively, you may discover that you failed to disclose a valuable asset or that you cannot discharge a specific debt.

Your financial circumstances have changed

If your financial circumstances have changed, such as obtaining a higher-paying job, you may wish to take advantage of Chapter 13’s advantages. You can, for instance, catch up on missed mortgage or auto loan payments. Chapter 13 offers more flexibility than Chapter 7. It may be possible, for instance, to eliminate a second mortgage on a home or to reduce the principal on a car loan. Additionally, it will help you catch up on domestic support obligations, which must be paid in full through your plan.

Your home is worth more than you originally thought

If you are unable to exempt your property due to an underestimation of its value, you may want to convert to Chapter 13 because it allows you to keep your property.

You omitted a valuable asset from your list by mistake

You may have accidentally revealed a valuable asset. Perhaps you didn’t think it was necessary, as in the case of a legal claim against someone’s auto insurance following an accident. Even if exemptions prevent you from retaining insurance proceeds under Chapter 7, you may be able to do so under Chapter 13. If this occurs, nobody will compel you to convert your case, but you may have to choose between doing so and losing the asset you failed to disclose in Chapter 7.

Under Chapter 13 bankruptcies, you can only discharge a specific debt

Certain debts are dischargeable only under Chapter 13. For example, if you wish your debts to be wiped out resulting from a divorce settlement. Chapter 13 conversion enables the discharge of additional debts.

How to Change Chapter 7 to Chapter 13

In most courts, converting your case is relatively straightforward. Numerous courts hold that you have the right to convert, regardless of whether or not a creditor or trustee objects.

You must at least perform the following:

  • file a motion asking the court for permission
  • send the motion to your creditors, the trustee, the United States Trustee, and anyone else who may be interested.
  • attending a short meeting.

Some courts will approve your motion without a hearing if no one opposes it and no opposition is raised. Many courts require you to adhere to additional regulations; therefore, you should review the local rules posted on your court’s website or speak with an attorney who is familiar with your court’s procedures.

Get in Touch with an Arizona Chapter 13 Bankruptcy Attorney today!

Do you intend to file bankruptcy for Chapter 7 or Chapter 13 in Phoenix, Arizona? You likely have questions regarding the bankruptcy process.  Struggling with debt? You are not alone. Get back on your feet. We will be glad to provide free legal counseling by spending time answering your questions and discussing your options in coherence with bankruptcy laws to make you feel at ease. 

Because we want to assist you in getting your life back on track, FREE CREDIT REPAIR is included in every one of our bankruptcy cases. Contact Phoenix Fresh Start Bankruptcy Attorneys today,