When filing for bankruptcy in Phoenix, Arizona, there are some types of debt that cannot be discharged in a Chapter 7 bankruptcy “fresh start.” Most commonly, these debts are spousal support, child support, and student loans. For those who owe large sums for back child support, back spousal support, or unpaid student loans, Chapter 13 bankruptcy process may be the best choice.
In a Chapter 13 bankruptcy filing, the debtor is allowed time to restructure the debts and repay them in full. For the debts that cannot be discharged in bankruptcy, such as spousal support, child support, and student loans, Chapter 13 bankruptcy protection will stop any harassment or garnishment and provide time to restructure the debt and complete a repayment plan.
Chapter 13 bankruptcy does not eliminate these debts. It provides a way to get caught up and stay current to repay the debts in full. An experienced bankruptcy law firm can help you determine if Chapter 13 bankruptcy is the right filing for your situation, and it is important to consult with a bankruptcy attorney before you make any bankruptcy filing decision.
