Chapter 7 And Chapter 13 Bankruptcy Code Flagstaff AZ

If an individual finds that non bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13.

Pernell W McGuire
(928) 779-1173
320 N. Leroux
Flagstaff, AZ
Specialties
Chapter 7, Chapter 11, Chapter 13, Litigation, Debt Collection
Education
Brigham Young University - J. Reuben Clark Law School,Brigham Young University
State Licensing
Arizona, Texas

Tyler Martin
(928) 779-1173
320 N. Leroux, Suite A
Flagstaff, AZ
Specialties
Debt Collection, Debt Settlement, Bankruptcy, Chapter 7, Chapter 13
Education
Brigham Young University - J. Reuben Clark Law School
State Licensing
Arizona

Keeley Kristine Smith
(602) 230-5575
Two N Central Ave
Phoenix, AZ
 
Paul J Richard
(928) 214-6467
401 N. San Francisco Street, Suite H
Flagstaff, AZ
Specialties
Chapter 7, Chapter 13, Business, Foreclosure, Debt Settlement
Education
TULANE U
State Licensing
Arizona

Anthony Wayne Clark
(602) 266-1212
P.O. Box 34506
Phoenix, AZ
Specialties
Bankruptcy, Chapter 13
Education
Salmon P. Chase Col. of Law
State Licensing
Arizona, Georgia, Tennessee

Paul J Richard
(928) 214-6467
401 N. San Francisco Street, Suite H
Flagstaff, AZ
Specialties
Chapter 7, Chapter 13, Business, Foreclosure, Debt Settlement
Education
TULANE U
State Licensing
Arizona

Matthew M Ellingson
(602) 570-2500
3411 N 16TH ST APT 2047
PHOENIX, AZ
Specialties
Chapter 13, Chapter 7, Real Estate
Education
Arizona State University,Arizona State University,University of Chicago
State Licensing
Arizona

Christopher H. Ariano
(602) 515-0841
1430 E. Missouri Avenue, Suite B-150
Phoenix, AZ
Specialties
Bankruptcy, Chapter 7, Chapter 13
Education
University of Detroit Mercy School of Law,University of Colorado - Boulder
State Licensing
Arizona

Pernell W McGuire
(928) 779-1173
320 N. Leroux
Flagstaff, AZ
Specialties
Chapter 7, Chapter 11, Chapter 13, Litigation, Debt Collection
Education
Brigham Young University - J. Reuben Clark Law School,Brigham Young University
State Licensing
Arizona, Texas

Thomas John Cesta
(602) 354-0050
2020 N Central Ave Suite 1100
Phoenix, AZ
Specialties
Debt Collection, Business, Car Accident, Wrongful Death, Bankruptcy, Chapter 7, Chapter 13
Education
Capital University
State Licensing
Arizona, Ohio

Chapter 7 And Chapter 13 Bankruptcy Code

Individuals who have amassed large debts have many options. However, if an individual finds that non bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13.

A Chapter 7 bankruptcy filing is best described as obtaining a discharge from debts (with some exceptions) while retaining some assets such as a home, household goods and an automobile as long as they do not exceed certain values determined by the U.S. Bankruptcy Code. Chapter 7 is consider a “liquidation” decision however if filed correctly and using the Bankruptcy Code to the best of your ability some assets can be retained while crushing debt is removed.

To be eligible to file a Chapter 7 bankruptcy the filer has to reside or be domiciled in the United States. In addition, they can not have been a debtor in a bankruptcy case in the 180 day period prior to filing the current bankruptcy case; they must receive counseling from an approved nonprofit budget and credit counseling agency prior to the filing and pass the “median family income” test. In order to receive a discharge in a Chapter 7 an individual may not have received a Chapter 7 bankruptcy discharge in the previous eight years or a Chapter 13 discharge in the previous six years.

The element which will fully determine if you can file a Chapter 7, is the “median family income” level. The individual or couple must review income made within the previous six months and average it out. If when the average income is measured against the “median family income” as stated in 11 U.S.C. 707(b)(7) and it falls below, then a Chapter 7 filing is appropriate. If the household income exceeds the “median family income”, then the individual or couple will be subject to the means testing. The means testing calculation takes the average amount of the income received during the six month period prior to the bankruptcy filing and subtracts it from the average monthly expenses. This determines the margin of excess income. Using this figure you determine if the excess income exceeds the margin allowed by 11 U.S.C. 707(2)(A)(i) and if you are eligible to file a Chapter 7 bankruptcy.

If you are unable to file for Chapter 7 due to the “median family income” level being too high and failing the means testing, then your other option is filing a Chapter 13. A Chapter 13 bankruptcy filing allows a person to seek protection of their property and develop a plan of paying creditors by making monthly payments to a Trustee under Court supervision. The plan can be for as little as 24 months or for as long as 60 months.

To be eligible to file a Chapter 13 bankruptcy the filer must reside in the United States, have a regular income, have unsecured debt less hand $336,900 and secured debt less than $1,010,650 and receive counseling from an approved non profit budge and credit counseling agency. In order to obtain a discharge in a Chapter 13 an individual must not have been granted a discharge in a Chapter 7 bankruptcy in the previous 4 years or been granted a Chapter 13 discharge in the last 2 years.

The primary advantage of a Chapter 13 filing over a Chapter 7 filing is that a debtor by paying a portion of his or her pre bankruptcy debts over the life of the Chapter 13 plan can obtain a discharge of the unpaid balances while retaining all of their asset, avoid foreclosure of a home and more debts are deemed dischargeable in a Chapter 13 verses a Chapter 7.

The disadvantages to a Chapter 13 verses a Chapter 7 is that the filer will have to pay something to unsecured creditors, a reduced amount against entire debt. However in a Chapter 7 filing it could result in a discharge from most or all pre bankruptcy obligations without any payments. Another disadvantage to a Chapter 13 is that a discharge will not be received until all payments required by the plan are done whereas a Chapter 7 debtor will usually receive a discharge in three to five months from filing.

It is essential that when trying to figure out if bankruptcy is the right option to contract an attorney to discuss the entire matter, review your current financial situation, determine what is most important to keep and let go and decide which is the best plan for their situation.

The forgoing article about bankruptcy choices was drafted by The law office of Goldstein and Clegg, LLC. More information can be found on their blog, http://www.goldsteinandclegglaw.com/bankruptcy_blog



Provided by ZingArticles.com