Chapter 7 and Chapter 13 in Phoenix, Arizona

It's bad enough you are contemplating bankruptcy in Phoenix, Arizona in the first place, but when you try to learn a little about the process, you keep seeing terms like Chapter 7 and Chapter 13 and no one seems to want to give any more details. Warnings like you must qualify and stopping credit collectors are just making things worse. It's enough to make a person with a Phoenix bankruptcy issue give up and just go further into default. Don't do that. In order to know if filing for bankruptcy is the right thing to do for you and your family, it's necessary to know more about the different plans available. If you are trying to save a business, the Phoenix bankruptcy plan to look at is Chapter 11. For everyone else, here's a brief look at the Chapters 7 and 13 for personal needs.

• chapter 7 bankruptcy
• chapter 13 bankruptcy
• consult a bankruptcy attorney

Of the two options in Phoenix, Arizona bankruptcy law, Chapter 7 is the hardest to get and often isn't the best choice depending on your circumstances. Under Chapter 7, liquidating your assets eliminates all debt. That means that if you own a home, it will likely be taken to cover debt. The same thing applies with your car. This type of Phoenix bankruptcy does get you out from under your debt, but it doesn’t leave you with much of anything in the process. The up side is you are no longer responsible for paying back the debt.

If given a choice, most people would choose a Chapter 13 Phoenix Arizona bankruptcy. This bankruptcy plan does stop the harassing calls and stress associated with that. However you are expected to pay back your debt based on a plan formed by the courts and trustee, not the individual companies owed. The length of the program will depend on your ability to pay and the amount of outstanding debt. The plus side of a Chapter 13 bankruptcy is that the harassment stops and you don't have to lose your home and valuable possessions to start over again.

Clearly both the Chapter 7 and Chapter 13 have their advantages, but to really understand your unique set of circumstances and make the right decision for you, contacting a Phoenix Arizona bankruptcy attorney is the best idea. They can take a lot of the guesswork out of the process for you and just about guarantee a satisfactory outcome.