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.