Phoenix Bankruptcy Law News

Chapter 13 Bankruptcy in Phoenix

Chapter 13 bankruptcy is known as a reorganization bankruptcy, or “wage earner’s plan,” and allows debtors to set up a structured repayment plan to gradually (usually three-to-five years) eliminate their debt. Eligibility and the terms of the plan are based on the debtor’s income. If it is too low or not steady enough, you cannot file for Chapter 13 bankruptcy.

In addition, there are certain debt limits that can prevent you from filing for Chapter 13 bankruptcy. Since the limit is constantly changing, you should consult an experienced Phoenix Bankruptcy attorney to see if Chapter 13 bankruptcy is the right decision for your financial situation.

Recently in Chapter 13 Bankruptcy Category

85% of Arizona Bankruptcies Were Chapter 7 in 2013

Arizona residents file for Chapter 7 bankruptcy far more than they do Chapter 13, according to the U.S. Bankruptcy Courts' statistical findings for 2013.

According to these statistics, 19,513 residents filed for Chapter 7 bankruptcy in the state last year. By contrast, only 2,935 individuals filed for Chapter 13 bankruptcy. Why the stark divide between Chapter 7 and Chapter 13?

Here are a few reasons why people might favor Chapter 7 over other forms of bankruptcy:

What Is Bankruptcy Court?

Bankruptcy courts have exclusive power to hear all bankruptcy cases. Judges in bankruptcy court are authorized to make the final decisions on your case.

Bankruptcy courts operate on a federal level. In Arizona, there are five federal court locations throughout the state that hear bankruptcy cases. Although federal laws govern bankruptcy proceedings, there are local rules and exemptions that apply only in Arizona.

So how do bankruptcy courts fit into the overall justice system?

3 Ways to Modify Your Chapter 13 Bankruptcy Plan

During a Chapter 13 bankruptcy, you don't fork over any property, but instead make a structured repayment plan. In an ideal world, you pay off your debts in three to five years, and that's that. But certain situations can make you fall behind in your repayment plan payments. Fortunately, there are a number of ways to accommodate such circumstances.

Here are three potential ways to modify your Chapter 13 bankruptcy plan:

3 Things to Know about Chapter 13 Bankruptcy

We know that filing for bankruptcy is never a pleasant experience, but it is often the most prudent way to get your finances back in order. Between March 2011 and March 2012, over 79,000 people filed for Chapter 13 Bankruptcy in the 9th Circuit.

With so many individuals choosing to file for Chapter 13 Bankruptcy in Arizona and elsewhere in the 9th Circuit, you should be keep in mind these three things before, during, and after you choose to file.

How Bankruptcy Can Be a Boon in Foreclosure

Bankruptcy and foreclosure: Either of them alone is enough to make most people run, but dealing with both together? A nightmare, right?

Actually, bankruptcy might just save you in foreclosure. Admittedly, it's not the way people hope to be saved from foreclosure. But filing for bankruptcy can help you save your house if it's in the process of foreclosure or about to be.

Both foreclosure and bankruptcy come about as a result of significant debt, and neither should be taken lightly. But choosing bankruptcy can have some significant benefits.

How to Get Help With Bankruptcy

When bills pile up and money is tight, many people start to wonder how bankruptcy works and how to get help. But the right time to ask these questions is long before things get desperate.

Money struggles happen to everyone at some point in life. For people who have an on-call "family lawyer" or participate in a legal plan, it's easy to find answers to questions about bankruptcy without adding to your debt.

For others, it's not quite so easy, though there's a lot of information available online. Knowing some basics about bankruptcy, and what the process entails, is a good place to start.

On Tuesday, we reported that Natalie Hawkins, the mother of gymnast Gabby Douglas, filed for Chapter 13 bankruptcy prior to the London Olympics. However, Hawkins isn't the only parent who's faced financial hardships in the years leading up to the Olympics.

Steven and Ileana Lochte, parents of swimmer Ryan Lochte, are behind on their mortgage payments and facing foreclosure. It's probably no coincidence that two of the Olympics' biggest stars happen to have parents with serious financial woes. But what's causing the parents of Olympians to go broke?

Life will probably never be the same for gymnast Gabby Douglas and her mom, Natalie Hawkins. After winning gold medals in both the individual and team all-around competitions, Douglas has become the de facto face of American gymnastics. She’s also sure to bring in a number of lucrative endorsement deals.

However, before all that, Douglas’ mom filed for Chapter 13 bankruptcy, TMZ reports. Chapter 13 bankruptcy allows a debtor to set up a repayment plan to gradually eliminate his or her debt. With the earnings Douglas is bound to make after the Olympics, Hawkins won’t have any problems making her monthly bankruptcy payments.

While bankruptcy can be a great tool to help you get out from under your debt burden, it can have lasting effects. Filing for bankruptcy can cost you your property and possessions and wreck your credit score. In addition, bankruptcies are expensive.

So what can you do if you decide not to file for bankruptcy? Below, we’ve included three of the best alternatives to bankruptcy.

Phoenix Bankruptcy Filings Decline; Follow State, National Trends

Despite the challenges of slow employment growth and a less-than-booming real-estate market, Phoenix-area bankruptcies dropped for the third month in a row with 2,434 filings in June, reports The Arizona Republic.

Compared to 2010, Phoenix bankruptcy numbers in 2011 have demonstrated an improvement across the board.

The first half of 2011 produced 14,271 individual and business filings, representing a 7 percent drop from the number of filings produced during the first half of last year. The amount of filings from last month alone marked an 8 percent decline from June 2010.