Chapter 7 And Chapter 13 Bankruptcy In Mesa

After the economic meltdown of 2008, many folks and families felt the domino effect of job losses, cash flow decline and housing payments increasing caused by bad mortgage loans and unethical practices. Consequently, folks are left with very few options if they wish to be able to keep their houses or even if they want to leave their property, and simply move ahead with their lives without being harassed!

What exactly is chapter 7 bankruptcy?
A chapter 7 bankruptcy can be described as "straight bankruptcy" or "liquidation bankruptcy" simply because you turn over your non-exempt property to your bankruptcy trustee for the trustee to sell and deliver the cash to your creditors. You are permitted to keep certain exempt property. After you file a chapter 7 bankruptcy you get an automatic stay which prohibits all creditors from collecting a debt without the courts permission. The automatic stay will prevent creditors from harassing you. Once you file your bankruptcy petition the judge will schedule a Meeting of Creditors Hearing. The intention of this hearing is to offer the creditors an opportunity to dispute your claim that you can no longer pay your debts. It's unlikely that any creditors will go to this hearing. 60-90 days after your hearing, the legal court will grant you a discharge and your bankruptcy will probably be finished.

Just what is a chapter 13 bankruptcy?
A chapter 13 bankruptcy s known as reorganization bankruptcy. A chapter 13 bankruptcy was generated for a person who wants to keep certain personal property that would otherwise be surrended to the bankruptcy trustee in a chapter 7 bankruptcy. The debtor would have the opportunity to pay back some or all their debts. You will make a payment to your bankruptcy trustee for 3-5 years to settle your debt. As well as your chapter 13 bankruptcy petition, you'll also file a payment plan with the bankruptcy court. A payment plan outlines your installments and amounts for a 3-5 year period.

What can a chapter 7 or chapter 13 attorney do for me?
A bankruptcy lawyer typically offers a free of charge bankruptcy consultation to talk about your plan of action and to determine whether chapter 7 or chapter 13 if the correct choice for you. If you do hire a bankruptcy attorney, the attorney would give you a preliminary bankruptcy worksheet. The bankruptcy worksheet will have a list of paperwork you will have to turn over to the bankruptcy lawyer including paystubs, bank statements, tax returns, monthly statements for all debts, etc. In addition, the bankruptcy worksheet will ask info like name, address, birth date, social security number, list of debts, list of personal property, etc. The bankruptcy attorney will submit all the necessary paperwork with the court, be present at the Meeting of Creditors Hearing with you, and continue to handle your case until you attain your discharge.

Will my creditors quit pestering me after I file for bankruptcy?
At the time you file your bankruptcy petition creditors are no longer allowed to harass you. The bankruptcy automatic stay additionally stops all creditors from trying to collect your debt. If a creditor ignores the automatic stay they may be liable for punitive damages and attorney’s fees. If a creditor continues to pester you, call your bankruptcy attorney for them to contact the creditor.


Laura Kaiser is a technical article writer for the bankruptcy attorneys at The Law Offices of Fife & Cesta located in Mesa. Laura has been looking into mesa chapter 7 and chapter 13 bankruptcy as part of her writing for this Arizona based bankruptcy law firm. You can check out The Law Offices of Fife & Cesta located at 1811 S. Alma School Road, Suite 270, Mesa, Arizona 85210 or get in touch with them at (480) 850-6541. You can also visit their website at FifeCestaLaw.com for additional information on Mesa AZ bankruptcy.