Chapter 13 Chandler AZ bankruptcy adheres to the requirements set forth by the 2005 Bankruptcy Act. All claimants who wish to file, must attend credit counseling within a six-moth period of submitting their claim in court. The Maricopa County court adds the second requirement in the case stipulations in which the consumer must enroll into a financial management course that is approved by the state of Arizona. All individuals who file for Chapter 13 bankruptcy fulfill eligibility requirements prior to court approval.
Meeting the Eligibility Requirements
Consumers filing for Chapter 13 bankruptcy submit a repayment plan to the Maricopa County civil court for approval. An attorney assists with the creation of this plan to ensure outlined obligations are addressed fully. The plan shows calculations of the consumer’s income following the deduction of monthly expenses. Priority claims are included in the household expenditures such as child-support payments, alimony, and tax requirements. It is a strictly-enforced stipulation of this bankruptcy chapter that all expendable income is used toward repayment of debt.
Approval of the Bankruptcy Plan
An in-depth analysis of the bankruptcy plan initiates three tests to determine whether it is approved. First, deliverance in the good faith of the consumer is established, which implies that he or she intends to follow through. All calculated payments for unsecured accounts should reflect a base value of payments required in Chapter 7 bankruptcy. The valuation shows that the consumer pays a minimum of $100 each month or $6,000 within a five-year period. The plan describes compliance concepts defined by the disposable income ruling for at least a three-year period.
The Maricopa County court schedules A 341 meeting in which the consumer and creditors attend. An attorney can negotiate with creditors if an objection to the repayment plan arises. The presiding judge has the authority to intervene when compromises are impossible between the consumer and his or her creditors.
Who Oversees Your Case?
The state of Arizona requires the assignment of a trustee to manage Chapter 13 Chandler AZ. All proceeds contributed by the consumer are distributed by the trustee who ensures that the consumer is paying as much as possible. He or she has the authority to contact the consumer’s employer to receive wage updates for this purpose. For further details about bankruptcy or stipulations, consumers may visit website.