What you can gain through bankruptcy
If you can’t pay your bills, you need to consider bankruptcy. If you have income, but can’t pay your debts within three years, bankruptcy may work for you. Bankruptcy is for people that can’t honestly pay their debts. It is not for people trying to cheat or deceive.
- Bring IRS seizures to a stop.
- Prevent your driver’s license from being taken for unpaid fines or judgements. (The stay doesn’t prevent revocation or suspension of your driver’s license for failing to pay court ordered support.)
- Stop foreclosures.
- Avert repossessions.
- Stop most evictions if bankruptcy is filed before a state court enters a judgment for possession. Prevent garnishment of any wages you earn after filing.
- Halt almost every kind of lawsuit.
Bankruptcy Generally Won’t Prevent:
- Governmental regulatory proceedings
- Criminal prosecutions
- Proceedings against someone who cosigned your loan, unless you file a “Chapter 13” repayment plan and propose paying the loan in full
- Contempt of court hearings
- Actions to collect back child support or alimony, unless you file Chapter 13 and propose to pay that obligation off during the life of your plan
From the moment you file your bankruptcy, you will have a legal protection called the automatic stay. This will prohibit creditors from contacting you, suing you, repossessing your property, or garnishing your wages.
Make most of your debts disappear
Bankruptcy discharges most debts. Most Credit cards, medical bills, phone charges, loans and judgments all are usually dischargeable. Non-dischargeable debts include:
- Student Loans
- Alimony & Child support
- Damages for a personal injury you caused while driving illegally under the influence of drugs or alchohol
- Debts from fraud
- Financial obligations imposed as part of a criminal conviction
- Taxes arising during the past three years
Catching up on payments
Dischargeable debts may still haunt you if they are tied to your home or car. In a Chapter 13 bankruptcy (you pay what you can and the remainder can be forgiven), you can propose a partial repayment to avoid foreclosure and make up back payments over five-year span. You can prevent repossession of your car by catching up on back payments of the life of the plan. You may have the option of only having to pay what the vehicle is worth.
Paying debts over time
Although some debts are dischargeable, filing a Chapter 13 bankruptcy enables you to spread your debts such as child support over a five-year period and not get hassled by creditors.
Pay all debts through bankruptcy
Filing bankruptcy may provide a way to pay all debts, rather than escaping them. If the value of your property is sufficient to pay your debts, but you just need time to sell it, bankruptcy can help you.
Call 480-755-8000 to speak with our Arizona bankruptcy attorney today for immediate help.