A Chapter 13 Bankruptcy Attorney in Phoenix, AZ can help you get the debt relief you need through a bankruptcy filing. A Phoenix Chapter 13 Bankruptcy Attorney can also help you create a repayment plan that suits your situation and goals.
A seasoned attorney will know the ins and outs of bankruptcy and how to protect your rights during the proceedings. They can also ensure that you are making all of the necessary filings and documents.
When you file for Chapter 13, you will have to submit a proposal to the court describing your current financial circumstances and your debts. This will be reviewed by a court-appointed trustee, who will contact all your creditors to make sure that they agree to your proposal.
The court will usually approve the proposal and allow you to continue with your Chapter 13 case. This is because Chapter 13 is a type of bankruptcy that allows you to keep your property and reorganize your debts over a period of time, typically three to five years.
While a Phoenix Chapter 13 Bankruptcy Attorney will take care of the details, there are some things you should know about your Chapter 13. The process can be complicated and even minor mistakes on your part could cause your bankruptcy to be dismissed.
Your Chapter 13 Payment Plan
You and your Phoenix Chapter 13 Bankruptcy Attorney will develop a payment plan based on your income, assets and debts. This will be used to determine how much you need to pay per month to pay off your debts. Your attorney will also take into account any living expenses that you have, such as housing and food.
Some of the payments you will make will go to your Chapter 13 Trustee, your Chapter 13 attorney, and a portion will be applied toward secured assets. The rest of the money will be used to pay unsecured debts.
Loss Mitigation
A Chapter 13 Bankruptcy can reduce your mortgage or other home loan balance, and even discharge some of the interest in your property. However, it is important to note that this type of debt reorganization does not eliminate the creditor’s right to pursue foreclosure.
If you are unable to afford your monthly mortgage or other home loan payment, a skilled Phoenix Bankruptcy Attorney can help you get the debt relief you need by filing for a mortgage modification in the Bankruptcy Court.
Generally, in order to receive this kind of modification, you must demonstrate that you cannot afford the original monthly payment and that you have a reasonable chance of being able to pay it off over time. This is typically done through a loss mitigation motion in the initial portion of your Chapter 13 bankruptcy case.
Second Mortgage Cram Down
Whether you own a primary or secondary mortgage, a cramdown can be an effective method of reorganization. This will reduce the principal balance of the primary loan and leave you with an unsecured amount, which can be paid at a percentage on the dollar over time in your Chapter 13 bankruptcy case.