Arizona consumers need a debt relief solution based on their circumstances. Consumers who are facing dire circumstances such as foreclosure or repossession need quick help. Chapter 13 could present them with the most benefits for these unfortunate situations. Attorneys in Glendale, AZ help these consumers file a claim through this chapter of bankruptcy.
What Benefits are Provided in Chapter 13?
Chapter 13 helps consumers set up a repayment plan for their debts. Instead of paying several payments each month, they’ll pay one. This payment is divided among their creditors until each debt is paid in full. The value for these payments is based on the consumer’s total income and monthly obligations.
The major benefits of this chapter is that the consumer receives an automatic stay. This stay prevents their creditors from filing any legal actions against them. This includes foreclosure and repossession. The automatic stay remains until the end of the case.
Reviewing the Repayment Plan
The repayment plan includes all debts included in the bankruptcy claim. They do not include any debts that were discharged by the judge. The most common debts that are discharged are low balanced and unsecured credit card accounts. Typically, these debts are repaid through an insurance policy if they are charged off.
The consumer must pay these payments each month and on time. They must also use all expendable income to pay off any debts that weren’t included in the case. The court may monitor their income to ensure that they follow this stipulation.
How Long Do Chapter 13 Cases Last?
Chapter 13 cases can last up to five years. However, on average they are discharged after three years. The point of the case is to give the consumer adequate time to pay off specific outstanding balances and reduce their debts.
Arizona consumers acquire debt solutions through bankruptcy. However, they must follow specific guidelines for filing a claim through the court. For example, they must attend credit counseling courses before they can start a claim. They must also have debts that are a specific value before they court accepts their claim. Consumers who need to evaluate bankruptcy as a debt solution should contact attorneys in Glendale, AZ or visit the site for more information now.