Bankruptcy In Mesa

When filing for bankruptcy, consult with Mesa bankruptcy lawyers since they are well-versed in the new bankruptcy laws passed back in 2005 and how they affect the state of Arizona. For example, Mesa bankruptcy lawyers know about the new federal laws have made filing for chapter 7 personal bankruptcy more difficult.

Sometimes called straight bankruptcy, chapter 7 involves a court-appointed trustee liquidating your non-exempt personal property to help pay back your creditors. To prove that you are eligible for chapter 7, you have to take a means test that shows how much disposable income you have.

If your average monthly income exceeds that of the current average monthly income in the state of Arizona, then you are ineligible for chapter 7 personal bankruptcy. In that case, if you still wish to file, Mesa bankruptcy lawyers suggest chapter 13. Many times, even if you are eligible for chapter 7, chapter 13 is a better option based on the specifics of your bankruptcy, such as if you want to keep all your nonexempt property.

Chapter 13 reorganizes debt into a three to five year repayment plan. While chapter 7 stays on your credit report for 10 years, chapter 13 only stays there for 7.

To be eligible for chapter 13 personal bankruptcy, you must have a stable, steady income, even if it not always the same amount. Income includes wages, salary, social security, pensions, unemployment, welfare, child support, alimony, rent, royalties, and money from selling property.

You also need to have disposable income. This means that after you have paid for all your basic human needs that you have money left over to pay to the bankruptcy court.

Finally, your secured debts cannot exceed $922,975. A secured debt is when if you stop making payments you lose a specific part of property, for an example, a mortgage on your home or a car payment.

For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.