My debt is becoming a huge burden, and I am unsure what my options are. Are there any benefits to filing for a Chapter 7 bankruptcy as opposed to a Chapter 13 bankruptcy?

There are two primary options for those struggling with debt in Arizona, either filing for a Chapter 7 liquidation bankruptcy or filing for a Chapter 13 reorganization bankruptcy. While you know the differences between the two options, it can be hard to decide which will be the right fit for you.

What Makes You a Better Candidate for Chapter 7 Bankruptcy?

The primary factor to consider when filing for bankruptcy in Phoenix is your income and assets. If your debt is the result of your income lowering or stopping altogether, you are likely a good candidate for a liquidation-type bankruptcy. While you may lose some of your nonessential property, if you already do not own much, you will most likely be able to keep everything.

What Makes a Chapter 7 Bankruptcy the Right Candidate for You

Not only do you need to feel as though you are able to work with your bankruptcy, you also need to feel like the bankruptcy option you choose is benefitting you. If you have little to no income or assets, the long-term payment plan associated with the Chapter 13 bankruptcy can cause more harm than good—if you fail to complete the plan, your debts will likely not be discharged and you will be back where you started.

A Chapter 7 bankruptcy allows you to eliminate a majority of your debt while also retaining your property in most cases. A well-planned case can be open and closed within six months, and you can move forward with a more manageable debt load—debts such as mortgages and student loans—as well as a better grip on your budget and finances.

If you are at the threshold of deciding which bankruptcy option is best for you, there is no need for you to make such a major decision alone. The Phoenix bankruptcy lawyers at Curry, Pearson & Wooten can walk you through the entire process from start to finish, to help guarantee that you get the best results possible from your bankruptcy. As you move forward with the next chapter of your financial life, get the guidance you need—call us at 602-258-1000 for a free consultation with one of our lawyers today.