Chapter 7 And Chapter 13 Bankruptcy Code Sedona 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.

Lonnie K McDowell
(928) 649-8609
850 Cove Parkway, Suite A
Cottonwood, AZ
Specialties
Chapter 13, Chapter 7, Corporate, Copyright Application, Debt Collection, Estate Planning, Probate, Trademark Infringement, Trademark Application, Trusts, Wills, Landlord & Tenant, Real Estate
Education
U OF A,Brigham Young University,Brigham Young University
State Licensing
Arizona

Angela T. Kruszynski
(602) 579-1734
PO Box 50157
Phoenix, AZ
Specialties
Bankruptcy, Chapter 7, Chapter 13
Education
Creighton University School of Law,Clarke College,College of Saint Mary
State Licensing
Arizona

Lonnie K McDowell
(928) 649-8609
850 Cove Parkway, Suite A
Cottonwood, AZ
Specialties
Chapter 13, Chapter 7, Corporate, Copyright Application, Debt Collection, Estate Planning, Probate, Trademark Infringement, Trademark Application, Trusts, Wills, Landlord & Tenant, Real Estate
Education
U OF A,Brigham Young University,Brigham Young University
State Licensing
Arizona

Asheton B Call
(480) 969-7999
2950 N DOBSON RD STE 6
CHANDLER, AZ
 
Shawn L Stone
(602) 307-5000
3030 N 3RD ST STE 200
PHOENIX, AZ
Specialties
Bankruptcy, Adoption, Litigation, Real Estate, Chapter 7, Chapter 13
Education
Arizona State University,University of Tulsa
State Licensing
Arizona

Morgan B McCain
(480) 704-4820
The Pomeroy Building, 136 West Main Street, Suite 211
Mesa, AZ
Specialties
Chapter 13, Chapter 7, Debt Settlement, Corporate, Personal Injury, Wills, Estate Planning
Education
U OF TULSA
State Licensing
Arizona

Andrea Wimmer
(480) 275-4894
60 E. Rio Salado Parkway, Suite 900
Tempe, AZ
Specialties
Chapter 7, Chapter 13, General Practice
Education
Quinnipiac University School of Law
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

John N Skiba
(480) 464-1111
40 North Center Street, Suite 200
Mesa, AZ
Specialties
Bankruptcy, Chapter 7, Chapter 13
Education
Brigham Young University,U of NV
State Licensing
Arizona

James F Kahn
301 E BETHANY HOME RD
PHOENIX, AZ
 

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



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