When you meet with bankruptcy attorney Lawrence‘D’ Pew for the first time, you will know that placing your trust in the Pew Law Center is the best decision you can make for debt relief. Phoenix area residents filing for bankruptcy under Chapter 7 (liquidation), Chapter 11 (reorganization), and Chapter 13 (individual debt adjustment) of the U.S. Bankruptcy Code have found Mr. Pew to be a compassionate and dedicated legal advocate. The debt reliefPhoenix residents need starts with knowledge and a basic understanding of how bankruptcy laws can help them in the U.S. Bankruptcy Court for the District of Arizona.
BRIEF OVERVIEW OF DEBT RELIEF
Chapter 7 Bankruptcy
A Chapter 7 liquidation bankruptcy is the most familiar form of debt relief. Phoenix bankruptcy petitioners look to Chapter 7 as the most expedient approach to getting a fresh financial start, more so than any other chapter available under the U.S. Bankruptcy Code. Under Chapter 7, if the debtor has nonexempt assets of any value to the bankruptcy estate, then those assets are sold with the proceeds administered by the case trustee. In most instances, though, most or all of the debtor’s property will be exempt from trustee collection under Arizona’s exemption statutes. The debt relief Phoenix petitioner’s receive at the end of a Chapter 7 bankruptcy is a discharge of personal liability on the remaining debts – this is indeed a fresh financial start!
Chapter 11 Bankruptcy
The Chapter 11 reorganization bankruptcy is often thought of as involving “big business” debt relief.Phoenix individuals may also take advantage of Chapter 11 as well, assuming they qualify. The choice of corporations, limited liability companies, and partnerships, most clients are unaware that sole proprietors may also file for relief under Chapter 11 of the U.S. Bankruptcy Code. The debt relief Phoenix petitioners receive is in the form of business rehabilitation and debt restructuring. The business, at the end of a Chapter 11, is either dissolved when the case converts to a Chapter 7 liquidation; or the case is dismissed when the business debtor is once again on solid financial ground.
Chapter 13 Repayment Plans
Not every individual will be eligible to file under Chapter 7 after completing the requisite Means Test. And in many instances, even if the debtor is eligible for Chapter 7, it may be advisable to file for Chapter 13’s debt reorganization. This is particularly so when the debtor has substantial assets that are not exempt under Arizona law. Under Chapter 7, those nonexempt assets would be sold and the proceeds used to pay down the debt to certain creditors. In a Chapter 13, all nonexempt assets need not be sold and will remain the debtor’s as part of the court-approved plan. The debt relief Phoenix petitioners receive is in the form of a three to five year repayment plan – that’s how long the bankruptcy lasts if it is not converted to a Chapter 7 or otherwise dismissed. The repayment plan will not pay off every creditor, and will not pay those creditors under the plan in full – this represents substantial debt relief for the Chapter 13 petitioner. Just as with a Chapter 7, the debt relief Phoenix Chapter 13 debtors receive is a discharge at the completion of the payment plan.
Parents and Ex-Spouses Continue Paying Support
Be mindful that some debts are not dischargeable in bankruptcy, no matter which chapter relief is sought. Two of those non-dischargeable debts include current support obligations for child support and alimony, referred to as domestic support obligations (DSOs).
When You Seek Debt Relief, The Pew Law Center Is Here to Help
When you seek debt relief, The Pew Law Center bankruptcy attorneys are there to help you through every step in the bankruptcy process. We shoulder both the legal and emotional burden for you, so you can begin enjoying your life again.
At the Pew Law Center, our Phoenix bankruptcy team reviews your financial circumstances to clearly identify all alternatives for debt relief. Phoenix petitioners have relied on us and our outstanding customer service for years. We have helped more than 2,000 area residents eliminate over $100 Million in debt through the filing of Chapter 7, Chapter 11, and Chapter 13 bankruptcies.