If you have got so much debt that you just don’t know what to do, you might find it surprising
that local bankruptcy attorneys in Glendale, AZ can help. Sometimes people just don’t think
about bankruptcy as a solution for debt, but in fact it is often the ideal solution for out of control money problems. The type of bankruptcy that you decide to file depends largely on your current financial situation, but your wishes play a strong part as well.
Chapter 7: When You Want to Remove All Debt From Your Life
Chapter 7 bankruptcy is the best choice when you want to get all of your debt out of your life completely. This is also a good option for anyone who just can’t repay what they owe due to hanges in their financial circumstances. In most cases, a chapter 7 bankruptcy does not mean that you have to lose everything you own. The state of Arizona allows generous bankruptcy exemptions that let you exempt certain property from being liquidated during the bankruptcy. The ultimate result of these exemptions is that you will typically be able to keep your house, your primary vehicle, and the majority of possessions that you use in your daily life instead of losing them to liquidation.
Chapter 13: When You Have a Lot of Property
Chapter 13 bankruptcy may be best suited for people who have a lot of debt, as well as a lot of personal property. For example, if you own more than one house, or if you have several different vehicles, and you wish to keep all of the extra property. In order to qualify for chapter 13 bankruptcy, you will have to prove that you will be able to pay the debt back in the future. Your creditors will typically work with your lawyer to draft a repayment agreement known as a reaffirmation. If you can stick with this repayment agreement in the future, your past due debt can be either forgiven or added to the end of the loan. Chapter 13 is a good way to gain some breathing room before you pay back your debts. If you are considering hiring chapter 7 and 13 bankruptcy attorneys in Glendale, AZ, click here to learn more today.
