Chapter 13 Bankruptcy in Glendale & Peoria, Arizona

Chapter 13 is a section of the Bankruptcy Code that helps qualified individuals and small proprietary business owners who desire to repay their creditors but are in financial difficulty. Chapter 13 permits the debtor to file a plan in which the debtor agrees to pay a certain percentage of future income to the bankruptcy court for payment to creditors. If the court approves the plan, the debtor will be under the court's protection while repaying such debts.

Chapter 13 bankruptcy differs from the outright liquidation of an individual's or business' assets (seen in Chapter 7 bankruptcy) and the expensive and complicated restructuring of debts (seen in Chapter 11 bankruptcy). Essentially, Chapter 13 allows a debt-laden person or sole proprietorship that still has significant income to submit an orderly plan to the courts to pay back debts over a few years. Doing so can provide advantages to the debtor not found in other forms of bankruptcy, such as preventing foreclosure of a residence.

Chapter 13 in Peoria & Glendale

Chapter 13 can also restructure tax obligations in addition to protecting individuals from the collection efforts of creditors. It permits individuals to keep their real estate and personal property, and provides individuals the opportunity to repay their debts through reduced payments. In Chapter 13, debts may be discharged that would be non-dischargeable under other chapters.

Assuming a bankruptcy filing is needed, the only way to determine the proper chapter is to analyze the available options under the bankruptcy chapters. Mr. Fatta is well versed in bankruptcy and thoroughly analyzes his clients’ options.

Contact us today

If you are facing Chapter 13 bankruptcy in Glendale & Peoria, thinking about filing, or just have questions, contact us the Law Office of Michael J. Fatta for experienced, personal legal aid, today.