Arizona Chapter 13 Bankruptcy

Who Files Arizona Chapter 13

Arizona Chapter 13 bankruptcy is a very common type of bankruptcy. People who do not file a Chapter 7 bankruptcy often file Arizona Chapter 13. People also refer to Arizona Chapter 13 as a restructuring of debt. In an Arizona Chapter 13, the debtor makes payments under a bankruptcy plan for a specific amount of time, which payments are split among creditors according to bankruptcy law.

People who file this type of bankruptcy often have a desire to pay a portion or all of certain debts but need some help structuring a plan to do so. The court will give a person filing Arizona Chapter 13 a chance to repay debts while reducing or eliminating the interest creditors charge.

Arizona Chapter 13 Basics

When a person decides to file Arizona Chapter 13, he or she must submit a payment plan to the court for approval. The payment plan will show how the individual is able to pay all basic needs and still have enough to make payments according to the payment plan. The payments which the debtor makes to the creditors, are smaller more manageable payments than the normal payments.

Since paying creditors is part of Arizona Chapter 13, the debtor's income must be large enough to live according to the court approved payment plan. The payment plan can last from 3-5 years. Once the payment plan is complete, the court gives the debtor a discharge of any remaining dischargeable debt.

Arizona Chapter 13 Attorney

Our Scottsdale Fresh Start attorneys can help you decide whether Arizona Chapter 13 is right for you and your financial situation. Fill out our free Arizona Chapter 13 evaluation today and let us help you get back on your feet.

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