Chapter 13

Chapter 13 Bankruptcy Lawyer in Yuma

Trustworthy Guidance for Arizonians with Unmanageable Debt

If you have a steady income but your debt has become overwhelming, Chapter 13 bankruptcy may be the best way to hold onto key assets while strengthening your financial foundations. For many of our clients at the Law Office of Phil Hineman, P.C., Chapter 13 bankruptcy is the best way to regain their financial footing and rebuild their lives over a few short years. We’ve helped numerous clients like you draft a manageable repayment plan, win court approval, and discharge the lion’s share of their debt. If you decide Chapter 13 is right for you, you can trust our firm to provide reliable guidance that works the Bankruptcy Code to your advantage.

Want to learn more? Call our Chapter 13 bankruptcy attorney in Yuma at (928) 224-3230 today. We can begin with a free consultation.

How Does Chapter 13 Work?

Unlike Chapter 7 bankruptcy, which is a quick discharge of eligible debt, Chapter 13 is a reorganization of your debt into lower monthly payments. Once you’ve completed those payments, your remaining unsecured debt is discharged. Chapter 13, therefore, is a better option for consumers who have secured loans for assets they want to retain, like their home.

With Chapter 13 bankruptcy, you work closely with your attorney to create a 3- or 5-year repayment plan based on your monthly disposable income. You present your plan to the court, and your creditors can respond before the court issues a decision. Your plan must allocate all of your disposable income and pay your creditors at least as much as they would receive in a Chapter 7 liquidation.

Once the court approves, you can begin making payments, safe from collection attempts throughout the process due to the automatic stay. After you complete your plan, the court discharges your remaining unsecured debt. Because your monthly payments under the plan are lower than your current monthly expenses, you can catch up on mortgage arrears if you want to save your home.

Who Can Qualify for Chapter 13?

Chapter 13 is only available to individuals (including self-employed workers, such as sole proprietors). It is often beneficial for people with a steady income who suffer a major setback, such as a prolonged illness or the failure of one or more large investments. To qualify for Chapter 13, you must have a reliable source of income that would allow you to complete the repayment plan. Additionally, you must owe less than $394,725 in unsecured debt and less than $1,184,200 in secured debt. If you owe more than these amounts, you may benefit from Chapter 11 instead.

What Property Can You Keep in Chapter 13?

As soon as you file Chapter 13 bankruptcy, the court issues an automatic stay prohibiting your creditors and debt collectors from contacting you. The automatic stay also stops foreclosure, repossession, wage garnishment, and creditor harassment. As long as your payments on your house and your car are current (or you catch up by the time you file bankruptcy), you should be able to keep these items.

Chapter 13 also offers two unique options to help you catch up with car and house payments:

  • Cramdowns — If you have owned your vehicle for more than two-and-a-half years and you owe more than what it’s worth, you may be able to force the creditor to refinance at the current value of the car.
  • Scrape-offs — If your house is currently worth less than the amount of the first mortgage, you may be able to eliminate a second mortgage.

Due to these opportunities, individuals frequently use Chapter 13 to rescue their homes from foreclosure and their cars from repossession. Our team at the Law Office of Phil Hineman, P.C. can assess your situation to determine whether you can benefit from a cramdown or scrape-off.

We can help you take the first steps toward financial freedom. Call (928) 224-3230 or contact us online to get started—we offer flexible payment plans.

Contact Our Yuma Law Firm Today

The Law Office of Phil Hineman, P.C. has helped clients protect their assets through Chapter 13 bankruptcy for more than 30 years. We can provide an abundance of information about bankruptcy laws, your rights and obligations as a borrower, the debt-relief process, and more. You can feel confident that working with our firm will bring you closer to achieving your long-term financial goals. Request your free consultation today!

  • Mr. Hineman represented me in my response to a petition for relocation.

    “My experience was very positive and I found him and his associates to be well-prepared and knowledgeable in helping me to be successful in keeping my family here in Arizona.”

    - David K.
  • I highly recommend them if you need to file bankruptcy.

    “Phil Hineman and his staff have been very helpful and supportive during this difficult time. Guidance was given and questions always answered.”

    - Bob R.
  • Mr. Hineman was very helpful.

    “He kept us updated with everything we needed to get through our bankruptcy.”

    - Walter H.
  • If you're in trouble, do not hesitate to call on Mr. Hineman's help.

    “He helped me in my case, lowered my punishment by the judge, and got rid of a few charges like how I asked.”

    - Kristian H.
  • A really good attorney.

    “When I acquired Phil Hineman to help me with custody of my child I was not allowed to see him and right away he got me visitations.”

    - Gerardo M.

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Phil Hineman has been providing bankruptcy, family law, and criminal law services for the community for over 25 years. Reach out to discuss your case today.