Types of Bankruptcy
Handling Chapter 7 and Chapter 13 bankruptcies in Arizona
Chapter 7 Bankruptcy
What is it: chapter 7 is a legal process that occurs when an individual files a petition to have his/her debts discharged.
Who can file for it: any person that has encountered debt problems, that meets residency requirements and that has not filed for bankruptcy in the past 8 years may file for Chapter 7. Chapter 7 is a bankruptcy that is for individual consumers.
How long does it take: on average, Chapter 7 takes 4 to 6 months to complete. In some cases, it may take longer if people do not fulfill requirements on time or if creditors file disputes.
Chapter 13 Bankruptcy
What is it: chapter 13 is a legal process that occurs when a person files a bankruptcy petition with a U.S. bankruptcy court that requests permission to repay his/her creditors over the period of 3 to 5 years.
Who can file for it: any person that is struggling with debt, but that has sufficient income to repay creditors may file for Chapter 13. People must also meet residency requirements, must not have filed for bankruptcy in the past 8 years and must not have more than $250,000 in unsecured debt or more than $750,000 in secured debt.
How long does it take: on average, the Chapter 13 process will take 3 to 5 years as people must repay their creditors in full. It may take less time if people make higher monthly payments.
Chapter 11 Bankruptcy
What is it: chapter 11 is a type of bankruptcy that allows business to reorganize so they can repay creditors.
Who can file for it: small and large companies may file for Chapter 11. During bankruptcy proceedings, they will have to reorganize and become more efficient so that they can generate revenue and repay creditors over time.
How long does it take: the Chapter 11 process can take years to complete and does not end until businesses have repaid their creditors in full.
Tucson Bankruptcy Law Firm
The Tucson Bankruptcy Law Firm is truly a results oriented bankruptcy firm. If you would like to speak with one of our Tucson bankruptcy attorneys about your debt, contact us to set up an initial consultation!
The Tucson Bankruptcy Law Firm is comprised of independent Tucson bankruptcy lawyers that handle Chapter 7 and Chapter 13 Bankruptcy cases in Arizona.