Filing For a Chapter 13 Bankruptcy: How Much Will You Owe?
Filing for bankruptcy can be a complicated process, which is why, if you live in Goodyear, Arizona it would be wise to consult with a local Goodyear bankruptcy lawyer before starting the process so that you are able to ascertain exactly what you will owe and how much of your debt will be discharged. Goodyear is a town in Maricopa County, Arizona and is the third fastest growing town in the state. Other area cities have seen similar growth, cities like Litchfield Park, El Mirage, and neighboring Avondale, though not to the same degree. Goodyear is the spring training base of the Cleveland Indians and this town is also home to a part of Franklin Pierce University. Living in Goodyear, means that you will have access to some of the best local Goodyear bankruptcy attorneys if you are considering filing for bankruptcy. The question that many people ask though is what they will still owe if they file a Chapter 13 bankruptcy in Maricopa County.
While it is difficult for a Goodyear bankruptcy lawyer to give you an exact amount, if you are able to provide the firm with as much information as possible about your financial situation then they will be able to give you a close estimate as to the amount of money that you will have to pay towards your debt if you are filing a Chapter 13 bankruptcy. You will be required to present a full list of your debt to the court and a trustee of the court will determine what you have to pay to the creditors. This is why it is important to file for a Chapter 13 bankruptcy in the area in which you live. The Goodyear bankruptcy lawyers have the best local legal knowledge and will be able to process your bankruptcy filing through the courts and the trustees that will be most favorable to your case.
· You will have to complete a ‘Means Test’ which will determine your monthly income based on the past few months (usually six months) of income that you have received.
· You will also have to complete a ‘Disposable Income Test’ which will determine how much money you have left over after paying your regular monthly expenses. Debt such as credit card debt and unsecured loans will not form part of your monthly expenses. The money that remains after paying your monthly expenses will be used to pay back your debt as part of a debt repayment plan as negotiated by your Goodyear bankruptcy lawyer as well as the trustee of the bankruptcy court.
· There may be certain payments that cannot be used to pay back debt and these will be taken into consideration by the trustee of the court. Examples of these payments are child support payments as well as certain types of alimony payments and taxes. These payments are known as ‘required payments’.
A Chapter 13 bankruptcy is certainly more complex that filing for a Chapter 7 bankruptcy which means the automatic discharge of most if not all of your debt, but the advantage of filing for a Chapter 13 bankruptcy is that you will be able to get back on your feet again much sooner. You will be able to enter into financial agreements with creditors and you credit score will not be as severely affected. A Chapter 13 bankruptcy means that you will still be taking responsibility for your debts and putting a structured repayment plan into place which means that you will be able to face the future with security and the weight of the law behind you in terms of satisfying your creditors.
If you have any questions about filing for bankruptcy in the Maricopa County area, then you would be well advised to consult with one of the experienced and professional Goodyear bankruptcy lawyers who will be able to advise you on the best way to approach the issue.
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