Anyone who has ever dealt with a crushing amount of debt knows that it can have an impact on every aspect of life. Worrying about debt and attempting to deal with creditors can lead to health issues, short tempers and strained relationships with loved ones. When the individual sees no way to pay off the debt, bankruptcy is an option worth considering. One of the attorneys in Chandler, AZ can help the client explore this possibility and determine if this is the most prudent move.
Assessing the Financial Condition
One of the first things any attorney in Chandler, AZ will want to do is take a complete look at the financial situation of the client. This means supplying a great deal of information. Along with the most recent creditor statements, there is the need to provide information about household income, any balances in bank accounts and details about any investment holdings. Even things like properties owned outright or currently carrying a mortgage will be part of the evaluation.
The goal is to determine if the client meets the current criteria for any form of bankruptcy based on the overall financial situation. Once it is clear bankruptcy is possible, the next move will be to decide which type of action is in the interests of the client.
Understanding About Priority Debts
There are certain types of debt that cannot be discharged through a chapter 7 bankruptcy. Those are known as priority debts. Most forms of back taxes, unless they meet very specific qualifications, are an excellent example of priority debt. When this is the main issue that the client is facing, seeking a chapter 13 bankruptcy is the most practical approach. This type of bankruptcy allows the client to repay the priority debts over a period of three to five years. Payments are made directly to the court and distributed according to an approved plan. If there is any unsecured debt involved, those creditors will receive partial or no payment during the bankruptcy period. At the end of the period, the priority debts are settled in full and any remaining debt is discharged.
There is no need to endure one more sleepless night worrying about debt. Visit the site and arrange a consultation with Asheton B. Call immediately. With the right approach, it will be possible to move past the current problems and begin to build a better financial future.