Arizona bankruptcy chapters for individuals
Mesa personal bankruptcy is available for individual and married couples as a legal method of discharging debts and creating realistic repayment plans to begin a new period of financial stability. Depending on the circumstances of your debt and income level there are a few bankruptcy options available:
Chapter 7 Bankruptcy in Mesa
Chapter 7 is often the quickest form of bankruptcy from start to finish. It involves a complete liquidation of the debtor's non-exempt assets. The assets are seized by the court and a court-appointed trustee sells them off to pay back creditors.
This form of personal bankruptcy in Mesa is generally available to people whose income falls below the state’s median income, and cannot pay back debts owed in a reasonable amount of time.
Chapter 13 Bankruptcy in Mesa
Chapter 13 generally takes more time than chapter 7 and involves the discharge of some debts and the repayment of others. Debtors are required to submit a 3 to 5 year repayment plan to creditors to pay back their debts.
The credit plan is created by taking a look at the individual's or married couple's monthly income and allocating all disposable income—after living expenses are met—to the repayment plan. This chapter is a big benefit to those seeking to keep their home or other valued property.
Chapter 11 - Business Bankruptcy in Mesa
Even though chapter 11 is available to individuals, it is generally used as a form of business bankruptcy in Mesa. It offers the debtor the opportunity to reorganize their debt and restructure their business.
There are several benefits of a Chapter 11 bankruptcy:
- Debtor typically remains in possession of their assets—business or personal
- Debtor can acquire new financing and loans during the process
- Debtor has the legal ability to cancel some existing contracts
Like chapter 13, chapter 11 requires the submission and approval of a reorganization plan. The debtor is allotted a set amount of time to submit this plan, and if this period is exceeded creditors may step in and supply their own plan.
Individual chapter 11 bankruptcies are typically used by people with a high net worth, a large amount of debt, or are the sole proprietor of their business.
Call 866-942-8408 or complete our online form for help with chapter 13 in Mesa.