Bankruptcy Law – The Differences Between Chapter 7 and Chapter 13

Different types of bankruptcies exist for the various financial situations facing consumers and businesses in the United States. Bankruptcy is not a one size fits all solution, and there are many different avenues to consider if you are filing for bankruptcy.

A bankruptcy lawyer in Phoenix can help you navigate bankruptcy law and the specifics of Arizona law. They will also help you to determine whether you should file for chapter 7 or chapter 13 bankruptcy. A bankruptcy lawyer will also show you how to file for chapter 7 bankruptcy or chapter 13 bankruptcy, and help you in court so that you get the best possible outcome from this process.

Chapter 7 vs. Chapter 13 Bankruptcy

These are two of the most common types of bankruptcy, but they each offer a different set of pros and cons. Chapter 7 bankruptcy can removes nearly all of your personal obligations to debt, but liquidates your nonexempt assets in the process. When filing for chapter 7 bankruptcy you must meet stringent requirements involving the amount of your income, your credit card use, and your past financial history.

Chapter 13 bankruptcy allows you to keep your assets, rather than liquidating them to pay debts. Instead, the money for your debtors will come from a debt repayment plan, filed by your bankruptcy lawyer based on your ability to pay.  You will make monthly payments and reorganize your debt in a fashion that in many cases, allows debtors the ability to keep their home and other property.

How to File For Chapter 7 Bankruptcy

If you are wondering how to file for chapter 7 bankruptcy, the first step is to consult with a bankruptcy lawyer in Phoenix or your local area. Your attorney will determine if you qualify based on factors including you median family income, past credit card use, your budget, as well as the type of debt you owe.

You are required to complete credit counseling, and fill out paperwork with the help of your lawyer. Once this is complete, your lawyer will file all of the required items with the court.

A meeting with your creditors and mandatory financial management education will follow a successful appearance before your bankruptcy trustee, and within 60 to 90 days,  you should receive a discharge order that your debts have been discharged.

Hiring a Bankruptcy Lawyer for Phoenix Court

There are regulations specific to Arizona regarding bankruptcy, so it is a good idea to hire a bankruptcy lawyer from Phoenix to handle your Arizona filings. A local lawyer will know how to file for chapter 7 bankruptcy or chapter 13 bankruptcy, in a way that will maximize your benefits.


This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.

This blog article was created by Larry P. Karandreas, Esq., on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Scottsdale, Peoria or the Surprise, Arizona area and want legal advice or help – please visit the firm website for more information. 
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