Bankruptcy in Gilbert provides an essential tool for those who need debt relief. If you qualify, you can declare bankruptcy and have all your unsecured debt discharged, including those credit cards that have soared past $10,000 each (or more), medical bills that have hit six figures, personal loans you took out to try to get a handle on the problem, and more. You can also file for bankruptcy that lets you restructure your debt so that you end up paying much less.
Hopefully, all of us would only get into the kind of financial trouble that would lead to bankruptcy once in our lives – when we lost our jobs unexpectedly, we struggled with rebounding after divorce, we became seriously ill, and so on. But life doesn’t always work like that. We can become sick more than once. We can get divorced and then become widowed. We can lose a job multiple times. Financial circumstances can fall quickly, and we can find ourselves struggling with debt many times in our lives.
Fortunately, you can file for Gilbert bankruptcy more than once. However, in Gilbert – and in other cities in other states across the country – there are rules about when you can file bankruptcy. Here’s what you need to know:
Chapter 7 Bankruptcy
Chapter 7 bankruptcy in Gilbert is what most people think of when they start thinking they might want to file for bankruptcy. That’s because this type of bankruptcy discharges – or completely clears out – many of the debts that most people struggle with, including credit card balances, unsecured loans (like payday loans), and medical bills. Chapter 7 bankruptcy does not clear out secured loans like mortgages or car loans, nor does it discharge government debts, such as student loans, back taxes, or criminal restitution.
You have to meet certain conditions to qualify to file for Chapter 7 bankruptcy, including meeting income limitations. You can have some assets, including a house and a car, but the value of these must fall under a certain amount or they will need to be sold to satisfy creditors.
Because Chapter 7 bankruptcy discharges debts rather than refinances them, the rules surrounding it are more stringent than for Chapter 13 bankruptcy. Even if you meet the criteria for filing for Chapter 7 bankruptcy, you won’t be able to file again any time you want. In Arizona, if you have filed for Chapter 7, you will not be able to file again until six years after your discharge.
Keep in mind that even if six years have passed, the courts are going to look on your filing more skeptically if you have requested debt relief through Chapter 7 bankruptcy multiple times. Work with a bankruptcy attorney to explore all your options and make sure you are making the right choice for your circumstances.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy in Gilbert is often referred to as a debt reorganization plan. Under this bankruptcy filing, a debt repayment plan is established over a three- to five-year period. The payments are determined by what the person owes and what the person is able to pay. Therefore, the person may end up paying much less over the course of the repayment plan. The person will only make one monthly payment, and will certainly pay less in interest.
Many people choose to file for Chapter 13 bankruptcy when they owe a lot on their mortgage or are facing foreclosure. The debt reorganization plan can help them catch up with what they owe so they can save their house and get a better handle on their finances.
The requirements for filing Chapter 13 bankruptcy are less strict than for Chapter 7 since you are paying back some or all of your debt. There are no prohibitions against continuing to file Chapter 13 bankruptcy back to back to back. Of course, you can’t file while your repayment plan is still under way (which lasts a period of three to five years), but you can file again as soon as it is over. Just like with a Chapter 7 bankruptcy, a judge may not too favorably on your filing if you have sought bankruptcy relief in the past (or many times in the past).
Always work with a bankruptcy attorney if you are in over your head in debt and want to explore how bankruptcy can help you. An experienced attorney can help you understand how to get the maximum debt relief so you can get your finances back on track and reduce the number of times you need to file for bankruptcy.
Gilbert Bankruptcy Lawyers can help. Our experienced bankruptcy attorneys can review your finances and help you understand if Chapter 7 bankruptcy or Chapter 13 bankruptcy is right for you. We’ll help you understand your rights and the benefits you can enjoy under bankruptcy protection. Call us in Gilbert today to learn how bankruptcy can help you get your finances back on track!
Gilbert Bankruptcy Lawyers