Posted on: April 9, 2023 Posted by: admin Comments: 0

Bankruptcy is an option for those who want to keep certain assets, are behind on mortgage payments or have other debts they need to pay back over time. Getting an initial consultation with an experienced Chapter 13 Bankruptcy Attorney in Phoenix Arizona can help you determine whether bankruptcy is right for you.

Generally, most of your debts are discharged in a Chapter 13 case, including credit card balances, personal loans, medical bills, tax liabilities and many others. However, some debts such as alimony and child support payments, recent taxes, student loans and other unsecured obligations may still be owed.

You can repay some unsecured debts in your bankruptcy, such as student loans, through a “percentage plan.” The percentage of the total amount that you owe is calculated by taking your average monthly income and dividing it by the number of months you have been out of work. This allows you to pay a much smaller amount of your unsecured debts.

The best Chapter 13 Bankruptcy Attorney in Phoenix will be able to help you develop a repayment plan that works for your situation. They will take your income and expenses into consideration, as well as your debts, to come up with a plan that you can afford and that will give you the most financial relief.

In most cases, the plan will include a catch up portion for pre-petition mortgage arrears. This will allow the client to catch up on their post-petition mortgage payments, while simultaneously curing all of the pre-petition mortgage arrears that they incurred before the filing of their bankruptcy case.

A “catch up” chapter 13 plan can be a great way to avoid the automatic foreclosure stay that usually comes after you file a bankruptcy case. It can also cure your debts and allow you to get caught up with your mortgage payments, which will save you money in the long run.

Another benefit to a catch up plan is that it will not affect your credit score. This can be important to you if you have recently lost your job or are struggling with other life changes.

Your attorney will be able to work with your creditors and help you to reach an agreement that is fair to everyone involved. They will be able to explain how the process works and make sure you understand everything that is going on.

If you have a large amount of unsecured debts or a lot of secured debt, a catch up plan can be very helpful. This will allow you to catch up on your debts and stop any collection calls from creditors.

It is also a good idea to talk to your attorney about seeking loss mitigation for your mortgage, since this will allow you to avoid the automatic foreclosure stay and potentially reduce your mortgage payments. You will need to show that you qualify for a loss mitigation modification, and that it would be economically reasonable for the lender to agree to modify your loan.

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