What is Bankruptcy?
Bankruptcy is defined as a legal process that is petitioned by a debtor and that allows a debtor to eliminate or repay the debts that he/she owes to his/her creditors. In the United States, there are various different types of bankruptcy that can be filed for by individual consumers and businesses. The two different types of consumer bankruptcy are Chapter 7 and Chapter 13. While both Chapter 7 and Chapter 13 Bankruptcy allow consumers to get out of debt, both types are unique and involve differing circumstances.
Chapter 7 Overview
People who file for Chapter 7 want to have their debts discharged (eliminated) because they cannot afford to repay their creditors. When people file for Chapter 7, they will go through the process of having their assets or property categorized as exempt or non-exempt. If property is considered exempt, they will remain in possession of it. However, if property is considered non-exempt, it will be liquidated. This means that it will be sold for a profit which is turned over to creditors to repay balances.
Chapter 13 Overview
When people file for Chapter 13, they want to repay their debts, but over the course of time. People who successfully file for Chapter 13 are allowed to repay their debts over a 3 to 5 year period. In order to file for this type of consumer bankruptcy, people must prove that they have sufficient income and are capable of continuing to repay their debts to creditors.
Will you need a Tucson Bankruptcy Attorney?
If it is your intention to file for bankruptcy in Arizona, you should consider hiring an experienced Tucson bankruptcy attorney, like the attorneys at The Tucson Bankruptcy Law Firm. Filing for bankruptcy can be complicated, but when people work with a skilled lawyer, they find that the process is much easier, less stressful and less time consuming. This is why most people find it advantageous to hire a bankruptcy attorney when they are filing for Chapter 7 or Chapter 13.
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.