How can a Tempe bankruptcy attorney help me?
The purpose of filing bankruptcy is to allow the debtor to have a fresh start. By using a Tempe bankruptcy attorney, it enables the debtor to ensure the case is filed properly and is increasingly more likely that the debtor will receive a discharge. There are checks and balances in the bankruptcy system to weed out the debtor’s who are honestly filing bankruptcy from those who are fraudulently filing bankruptcy. One who is honestly filing bankruptcy will receive a discharge of debts, while a dishonest or fraudulent filer will not and could be charged with bankruptcy fraud. The discharge of debts eliminates any obligation that the debtor has to pay the unsecured creditor.
Most filers need to file either a chapter 7 or 13 bankruptcy. The numbers only refer to the chapters under the United States code. A chapter 7 is the most common type of bankruptcy and allows the discharge of all unsecured debt. A chapter 13 is a type of repayment plan for those who either have assets that need to be protected or their income is too high to file a chapter 7.
A Tempe chapter 7 bankruptcy is a type of liquidation. Liquidation meaning that assets would be sold in order to distribute monies among unsecured creditors that are owed. Even though this type of bankruptcy is coined the term ‘liquidation’, in many cases there is nothing to liquidate. However, the unsecured creditors are entitled to the value of any non-exempt property.
The reason that the non-exempt property or assets must be liquidated is so that the value in cash can be divided among creditors.
To figure out what your options are with your specific case and get your questions answered it is important to consult with a competent Tempe bankruptcy attorney. They will be able to analyze the details in your case, determine the best chapter to file and the most beneficial time for filing the case to ensure a proper accepted case and filing.
Stephen M. Trezza