The advantage of reorganization bankruptcy

Sometimes, those in Arizona are so far in debt that they just want to wipe everything out and start over again, and these people often turn to Chapter 7 bankruptcy. However, what if you don't want to liquidate your assets to get rid of all of your debt at once? Is there an option for you if you just want a new way to pay back what you owe?

There is an option, and it's called Chapter 13 bankruptcy. The biggest advantage of Chapter 13 is that it allows you to reorganize your debt into a manageable plan that you can afford. People often set up a three-year plan or a five-year plan and then make payments on a set schedule, as they would with any other debt. This a great alternative to having to pay it all off at once, which may be impossible.

With a reorganization plan, a company can stay in business and keep earning; it does not have to be shut down entirely. In fact, the new plan may even allow the company to be profitable and build for the future in a way that it could not before.

Another advantage is that assets can be retained. In Chapter 7, assets are sold or liquidated so that as much of the debt can be paid as possible, and the remaining portion is forgiven. Chapter 13 does not require such extensive liquidation of assets, so it can be less of a disadvantage in the long run.

To learn more about how Chapter 13 bankruptcy works, please visit our helpful site now.

No Comments

Leave a comment
Comment Information
  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
  • Best Attorney Client Satisfaction Badge
Schedule A Consultation Today

Attorneys You Can Depend On And Trust

From our office in Surprise, The Dodds Law Firm, PLC, serves our clients' needs throughout the Valley. To schedule a consultation with a lawyer, call 623-208-6098 or toll free at 877-827-9906. You can also contact us online.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy