Understanding Arizona Bankruptcy: Filing Chapter 13

If you’re considering filing bankruptcy, you know it can be a confusing and overwhelming time. At The Pew Law Center, PLLC we are dedicated to giving our clients the best possible legal guidance through life’s most challenging times. In this series, “Understanding Arizona Bankruptcy,” we will cover a multitude of bankruptcy facts and FAQs – but if you still have questions or concerns please don’t hesitate to contact one of our experienced bankruptcy attorneys for further guidance.

Right now you may be feeling as if you don’t have a friend in the world. We’re here to tell you that you do have a friend. But your friend may not be who you think it is.

There are a lot of myths and misconceptions (and even some downright lies) that are passed on by credit card companies seeking to keep you from filing bankruptcy. These are repeated online and by the media.

Here’s one misconception you may have picked up:

Myth: I should go to a debt counselor or credit counseling organization before I meet with an attorney.

Truth: Credit card counselors are not your friends.

They are very nice people, but the primary way they make money is from your creditors. Their loyalty is to your creditors, not to you. They cannot force a creditor to accept their proposal.

In fact, the IRS has disqualified several credit counseling organizations because they were found to be nothing more than cleverly disguised collection agencies for the credit card companies.

Many people come to our law firm believing they can’t get the help they need, but we use our knowledge and years of experience to analyze every possible angle.

Chapter 13 Bankruptcy: Reorganizing your debt into monthly payments

Those who do not qualify for chapter 7 bankruptcy or who need to protect their home from foreclosure can file for chapter 13. Under a chapter 13 bankruptcy, your debt will be “reorganized” and you will make monthly payments for 3-5 years to a trustee assigned to your case.

Your unsecured debts will be paid back with this monthly payment, and interest and fees associated with these debts will stop accruing as soon as you file. At the end of your repayment term, any amount you still owe on these debts will be discharged completely.

Of course, the most frequent question asked by people considering chapter 13 bankruptcy is: How much will my monthly payments be? While it would be impossible to answer that question exactly before the bankruptcy is filed, you can be confident that our attorneys will work hard to get you the smallest monthly payment legally allowed.

As an added bonus, once you file for bankruptcy protection, creditors are no longer allowed to attempt to collect your debt by harassing you with phone calls, filing lawsuits or garnishing your wages. A professional with experience handling bankruptcy cases can help you do this. Chapter 13 can also protect your home from foreclosure and give you a chance to catch up on your payments while getting rid of your second mortgage or home equity line of credit.

Getting Help From an Experienced Chapter 13 Bankruptcy Lawyer

Get help from someone who truly has your best interests in mind. We are here to serve you, not your creditors.  

At The Pew Law Center, PLLC, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.