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Chapter 7, 11, or 13: eenie, meenie, miney, mo?

Did you file for Chapter 7 Bankruptcy in Arizona in the last 8 years and are in financial distress again?  Maybe your taxes and student loans were not discharged in your Chapter 7 and you still need help.  Are you in substantial arrears on your home mortgage and can’t catch up before foreclosure?  If you answered ‘yes’ to any of the above questions, there is help for you right here in Arizona.

With so many similarities between the bankruptcy chapters comes so many differences.  It is extremely important to consult with a qualified Arizona bankruptcy attorney to understand what solution will fit your unique situation.  Like Chapter 7, Chapter 13 provides an automatic stay of creditor claims so any foreclosures or harassing phone calls and letters will cease.  The information required in both chapters is also similar and the same type of petition and schedules are used.  In contrast, Chapter 13 requires an exact plan to pay your creditors while Chapter 7 liquidation is intended for reorganization.

If you are filing Chapter 13 for your business, you must be self-employed or a DBA not a corporation, partnership, or LLC.  You may find, however, that a Chapter 13 plan is generally easier to get confirmed because creditors can’t vote on whether they want to accept your plan as in Chapter 11.  You are restricted to only one repayment option in a Chapter 13 and that is to make monthly payments beginning 45 days after it is filed.  Chapter 11 has no restrictions on a repayment plans as long as it is approved by the judge.

Chapter 7, 11, or 13: eenie, meenie, miney, mo?  I don’t think so.  Seek the counsel of Arizona bankruptcy lawyers to help you learn the ins and outs of bankruptcy and find a solution.