Phoenix Bankruptcy
If you are finding yourself in financial trouble, declaring bankruptcy may be the best course of action. It is important to note that there are different types of Phoenix bankruptcy claims that can be declared and you should choose the one that best suits your needs.
A Chapter 13 bankruptcy, for example, is built for individuals and business owners who intend to repay their debt through a plan that will be reviewed, approved, and overseen by a bankruptcy court. It is designed for those who need immediate relief from collections and additional late payment penalties and interest. This form of Tucson bankruptcy can significantly help you reduce your monthly payments for both secured and unsecured debt. Chapter 7 bankruptcy is for those who desire to eliminate all of their unsecured debt.
Under Chapter 7 bankruptcy laws, the filer may “reaffirm” certain secured debt, such as a mortgage and automobile loan. This means that you can eliminate all revolving credit card debt and keep your home and car by agreeing to continue to repay the loan. While it is true that the new bankruptcy laws of 2005 affected some people, the large majority of families that qualified for Chapter 7 Arizona bankruptcy prior to the new laws, can still qualify.