Is Filing for a Chapter 13 Chandler AZ the Right Choice?

When the debt load becomes impossible to manage, it is natural for a consumer to consider the possibility of filing for bankruptcy protection. After trying all sorts of other options, this seems like the only way to resolve the current financial crisis. When talking with an attorney, there is a good chance that the possibility of filing a Chapter 13 Chandler AZ will come up in the conversation. Here are some reasons why this particular approach may be the best way to proceed.

The Debtor Does Not Meet the Criteria for a Chapter 7 Bankruptcy – Not everyone is eligible for a Chapter 7 bankruptcy action. The courts today have specific criteria that an applicant must meet. For example, there is the application of what is known as a means test. This is simply an evaluation that determines if the client does have at least some disposable income that could go to retiring those current debts, if the court set up a payment schedule. For debtors who do have money left over after taking care of essentials like food, clothing, and shelter, filing for a Chapter 13 Chandler AZ is the most practical way to obtain protection from the court and eventually become debt free.

Creditors Stop Calling – Filing a Chapter 13 bankruptcy will also bring collection calls to an end. Once the paperwork is filed and under the consideration of the court, the creditors are notified of the action and its pending status. Should any creditor call, the debtor only needs to state that a bankruptcy petition has been filed and offer the name and number of the attorney handling the case. If a creditor persists in making collection calls, this should be reported to the attorney and the court immediately. In general, the court does not look fondly upon a creditor who continues to make collection calls when a bankruptcy action is under consideration. The Impact on Credit Ratings Keep in mind that while the bankruptcy action will have a detrimental impact on credit ratings, that effect is typically less harmful than going through debt management programs. Once the bankruptcy is settled in full, it will be possible to begin rebuilding that rating and hopefully enjoy a more stable financial future. For people who are facing what seems like an impossible amount of debt, Visit Site and learn more about this bankruptcy option. Doing so could be the first step in regaining financial freedom.

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