Many people wrongly perceive bankruptcy as “taking the easy way out,” when in reality—for those of us who have a better knowledge of the process—bankruptcy is an enormous commitment that takes a lot of skill and dedication to conquer. For those that do get into a bankruptcy thinking that it will be a breeze, especially a Chapter 13 bankruptcy, failure is not uncommon.
Phoenix Chapter 13 Bankruptcy: The Tough Truths
Because of a Chapter 13 bankruptcy’s lengthy repayment plan, many filers do not successfully complete the process, which typically lasts three to five years. There are many factors that can affect a person’s ability to complete the payment plan or have it approved by the court, but generally speaking there are two primary reasons people do not succeed: failure to make payments, or attempting to file for a Chapter 13 bankruptcy petition without legal representation.
Of the two primary consumer bankruptcy types, Chapter 13 is by far the most complex. The guidance and expertise that an experienced bankruptcy attorney can provide is invaluable. Not only will you, the filer, benefit from having a professional help you prepare your petition, but the bankruptcy court and trustee will inevitably have more faith in a petition that has been thoroughly prepared.
Making regular payments over the course of the plan is another challenge. Over the course of the last few years, what has changed in your life? What could change in your life over the next five years? Predicting your financial situation beyond a certain point is incredibly difficult, especially considering how closely intertwined finances are with other parts of life, such as relationships, location, and health. A plan that you can handle now may be impossible if you take a pay cut or your spouse loses his or her job.
Are You Ready to Tackle Your Arizona Chapter 13 Bankruptcy?
Despite the possible obstacles to success, the benefits and protections offered by a Chapter 13 are often well worth the extra effort. If you feel ready for the challenges and rewards of a successful Chapter 13 bankruptcy, get started today by calling Curry, Pearson & Wooten’s Phoenix bankruptcy attorneys at 602-258-1000 for a consultation about your financial future.