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Tucson Bankruptcy Lawyers—How to File Chapter 13 Bankruptcy

Confused about how to file bankruptcy; you are not alone. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made filing personal or business bankruptcy a difficult task. These protection implements strict rules and regulations, places restrictions on the amount of secured and unsecured debts, and requires debtors to obtain credit counseling prior to petitioning the bankruptcy court. As a result, it makes hiring a Tucson bankruptcy lawyer imperative when considering to file bankruptcy.

Understanding the intricacies of how to file bankruptcy usually requires the assistance of a Tucson bankruptcy lawyer. While the bankruptcy regulations do not require individuals to be represented by a bankruptcy lawyer, few people can undergo the process on their own. Doing so could place you at risk of having your bankruptcy filing rejected.

There are two personal bankruptcy chapters—chapter 7 and chapter 13. Chapter 7 requires debtors to liquidate their non-exempt assets through the bankruptcy court. Creditor debts are discharged and the debtor is given the opportunity for a fresh start. Certain debts cannot be discharged in chapter 7 including outstanding child or spousal support, back taxes owed to the Internal Revenue Service, lawsuits, and government-funded or guaranteed student loans.

Chapter 13 bankruptcy is a repayment plan which allows debtors to retain their assets. Payments are generally spread out over three to five years. The downside of chapter 13 is many people who file this chapter fail out of bankruptcy within the first eighteen months. When this occurs, creditors can request the bankruptcy court to require the debtor to file chapter 7 and liquidate their assets to repay outstanding debts.

The first step of filing bankruptcy requires obtaining credit counseling through an agency approved by the U.S. Trustee Program. Next, you will want to retain the services of a qualified Tucson bankruptcy lawyer.

Once bankruptcy forms have been completed, your Tucson bankruptcy lawyer will file your petition with the bankruptcy court. Shortly thereafter, you will be required to attend a creditor meeting. Although creditors rarely attend these meetings, here they will be allowed to ask questions regarding outstanding debt owed to them. If they do not show up at the arranged meeting, they have up to thirty days to present their claim to the court.

Finally, you must appear in front of a bankruptcy judge. The judge will review your case and ensure you have met all requirements including approved credit counseling. The judge will either discharge debt through chapter 7, or approve, reject or modify repayment plan for chapter 13.

You should gather necessary information about how to file bankruptcy through your own and by consulting our Tucson bankruptcy lawyer. In addition to the bankruptcy process, you can learn about bankruptcy alternatives such as debt consolidation and debt settlement from our experienced Tucson bankruptcy lawyers.

Read about Vancouver Bankruptcy Lawyers.

 

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