After bankruptcy reform legislation was put into effect in 2005, it became more difficult for consumers in the Chandler area to file for chapter 7 bankruptcy. Many people are no longer eligible to file for chapter 7 because of too much income. Although it is no longer possible for many to get immediate discharge of most debts under chapter 7 bankruptcy due to not meeting eligibility requirements, it may be possible to get debt relief by filing for bankruptcy under Chapter 13 Chandler AZ.
With chapter 13 bankruptcy, consumers have to complete an affordable repayment plan that lasts from three to five years. Upon completion of the chapter 13 repayment plan, any remaining balance on the debt is discharged. Because the repayment plan has to be affordable, the monthly debt payments may not be high enough to pay down much of the debt. At the conclusion of the repayment period, many people end up having most of the original debt discharged with bankruptcy under Chapter 13 Chandler AZ.
Without the repayment plan setup under chapter 13 bankruptcy, the debt is unlikely to go away after three to five years. There is no financial relief from the debt. The monthly payments may be not be affordable. Even if there are no late payments on loans, consumers will find that it is very difficult to borrow money when they owe a lot of money. Consumers will have to decide whether or not the credit hit from a chapter 13 bankruptcy is better than trying to stay current. Many people who file for bankruptcy do not regret the decision. Many are able to get new loans and credit cards within five years. There are some that are able to get a mortgage a few years after the bankruptcy. That is why filing for chapter 13 bankruptcy is often the right decision even with the derogatory credit and the lack of immediate discharge of debt.
To find out if chapter 13 bankruptcy is the right move, consumers should contact a lawyer specializing in this area of the law for a free consultation. Many lawyers encourage potential clients to Visit Site for more bankruptcy information. Although bankruptcy is not the right choice for everyone, many people benefit from the significant financial relief that chapter 13 bankruptcy provides upon the conclusion of the repayment plan.