The Cave Creek bankruptcy attorney with McDonald Law Offices can answer all of your questions and help you determine whether a chapter 7 bankruptcy or a chapter 13 bankruptcy is right for you. We can explain each type of bankruptcy and help you determine if filing bankruptcy can help you.

A chapter 7 bankruptcy will allow you to relieve yourself of burdensome credit card debt, medical debt, pay day loans and other unsecured debt. A chapter 7 bankruptcy is the most common type of bankruptcy. In chapter 7 the goal is to discharge of as many debts as possible so that you can get a fresh start. The court will appoint a bankruptcy trustee. The trustee has a number of jobs. The trustee will review the documents that you have filed for completeness. The trustee will review bankruptcy schedules A and B to determine if you have certain assets that are not protected by law. Property that is not protected or exempt can be taken from you by the trustee and sold at auction. The proceeds will be used to pay a dividend to your creditors. Exempt property is property that is protected by law and can not be sold by the trustee. If you have nonexempt property our Cave Creek attorney will discuss the options you have including the Do’s and Don’ts regarding the nonexempt property.

A chapter 13 bankruptcy will allow you to keep your assets, stop foreclosure, stop repossession and reorganize your debts. When you file a chapter 13, you will file a plan that indicates how your creditors are going to be paid back. The court will appoint a trustee and you will make one payment per month to that trustee. The chapter 13 trustee has many functions including acting as a disbursing agent and paying your creditors for you. The plan will last anywhere from thirty six to sixty months depending on a number of factors. After you have completed the plan the court will enter a discharge that will cancel, with limited exceptions, the debt that has not been paid.

You will be required to attend a meeting of creditors under section 341 of the bankruptcy code. You will be required to provide proof of your identification in the form of your driver’s license or other government issued photo ID along with your social security card. The trustee will ask you a series of questions regarding your financial affairs and your creditors will have the opportunity to ask you questions.

It is important to talk to an experienced bankruptcy lawyer that understands the bankruptcy laws in Arizona. At McDonald Law Offices, we have guided individuals to the fresh start they need for over 25 years. We offer free consultations and are here to talk to you about your situation. Please call us today.