Arizona Chapter 13 Bankruptcy LawyerArizona Chapter 13 Bankruptcy Lawyer

Generally, people file for Chapter 13 bankruptcy when they are unable to qualify for Chapter 7. However, an Arizona Chapter 13 bankruptcy lawyer will argue that there are other compelling reasons to choose Chapter 13 instead of Chapter 7, including:


  • Paying off substantial tax liability or child support payments with little or no interest




  • Protecting assets that would have been liquidated in a Chapter 7 bankruptcy


The process in a Chapter 13 bankruptcy typically involves the creation of a plan to pay unsecured creditors an amount deemed affordable over the course of three to five years. If you continue to pay your pre-determined amount of debt to a Trustee for the duration of the agreed-upon plan, the amount of unsecured debt not paid off will be eliminated.

Some of the other advantages of filing Chapter 13 include:

Eliminating second and third home mortgages.

An Arizona Chapter 13 bankruptcy lawyer can tell you that if your home’s value is less than what you owe on your first mortgage, you might be able to eliminate your second and third mortgages and/or home equity loans.

Restructuring past due amounts on home mortgages.

With proper planning, you might be able to protect your home against foreclosure by making payments on past due amounts more manageable over the course of several years.

Restructuring car payments.

Many people owe considerably more on their car than what it is actually worth. If you purchased your vehicle more than 910 days before filing for Chapter 13 bankruptcy, it may be possible to save thousands of dollars by repaying only the vehicle’s fair market value, not the full amount owed on it. In addition, the interest rate paid to the vehicle’s lenders can be lowered through a Chapter 13 Plan, thanks to the In re Till case.

Contact Kamper & Estrada, PLLC Arizona Chapter 13 bankruptcy lawyers to learn if filing Chapter 13 is the best choice for your particular situation. If so, we will handle every aspect 


Myths About Chapter 13 Bankruptcy


Bankruptcy involves restructuring your debts and typically take between three and five years to complete. Although this type of bankruptcy has many benefits, some people avoid it because they believe some of the myths about it.


Here are some common Chapter 13 bankruptcy misconceptions.



  • You Have to Pay Everything Back: Some people shy away from filing for Chapter 13 bankruptcy because they think they have to pay all their debts back. After all, why would you even go through the process if you have to pay everything back? The truth is, however, that you only have to pay a portion of what you owe to your creditors. The amount of money you pay every month will depend on your income. Instead of taking over a decade to pay off all your debts, you can pay them off in a few short years.
  • The Judge Will Decide How Much You Repay: Another common misconception people have about bankruptcy is that the judge will dictate your repayment plan. However, you can actually create a repayment plan with your Arizona Chapter 13 bankruptcy lawyer. As long as you are honest about your income, assets and debts, there’s no reason why the court shouldn’t accept your proposal.
  • You Will Lose Your Home: Some individuals think twice about filing for Chapter 13 bankruptcy because they’re afraid they will lose their home. While you may risk losing your property with Chapter 17 bankruptcy, that isn’t the case with Chapter 13. As long as you continue to make your mortgage payments, you can keep your home.
  • Your Credit Will Be Ruined Forever: It’s true that your credit rating will take a hit if you file for Chapter 13 bankruptcy. However, as an Arizona Chapter 13 bankruptcy lawyer can confirm, your credit rating will be better off than if you had filed for Chapter 7 bankruptcy. Lenders tend to look more kindly towards Chapter 13 bankruptcy because you’re at least making an effort to pay back part of what you owe. After a year or so after filing bankruptcy, you may even start applying for new credit cards and work towards improving your credit.


Hiring a Lawyer Isn’t Necessary: There are some people who avoid hiring an Arizona Chapter 13 bankruptcy lawyer because they don’t think they can afford the services. They’re already struggling with debt and don’t want that extra expense to deal with. However, filing for Chapter 13 bankruptcy is incredibly complex and you can make costly errors without assistance. If you worked with an experienced lawyer, he or she can guide you through the entire process and improve your chances of getting your bankruptcy approved by the judge.