An Overview of Chapter 13 Bankruptcy

In Arizona, chapter 13 is a broader bankruptcy filing and allows for some flexibility in retaining assets. Chapter 13 bankruptcy filing may allow a debtor to keep an asset, such as a home or other valuable, while completing a plan to make overdue payments. These assets are considered by the court to be exemptions from the bankruptcy proceedings, and must be court-approved.

In chapter 13 bankruptcy, the debtor submits a plan to repay some of the debts over 3-5 years and that plan must be approved by the court at a confirmation hearing. Any debts that are not to be repaid are not immediately discharged; the discharge will not occur until the payment plan is complete. During the repayment period, the debtor is protected from legal action by all creditors, whether included in the repayment plan or scheduled for discharge.

Filing for chapter 13 bankruptcy in Phoenix, AZ, should be done with legal counsel. There are a number of details and factors that weigh on this decision, and it is wise to consult with an experienced bankruptcy attorney such as The Frutkin Law Firm.