If you live in Prescott, Arizona and have recently found out that you are ineligible for Chapter 7 Bankruptcy, you may be considering filing for Chapter 13 Bankruptcy as an alternative. Fortunately, qualifying for Chapter 13 Bankruptcy is actually much easier than qualifying for a Chapter 7 Bankruptcy, as long as you know how to go about the process. You should also know that filing for Chapter 13 Bankruptcy is often more beneficial in the long run, as it has less of a negative impact on your credit score and allows you to keep any applicable assets you currently possess.

The first step in filing for Chapter 13 Bankruptcy is to create a successful bankruptcy plan. This plan will need to outline how and within what time period you plan on paying off your debts. Through the plan, you must prove you can handle the responsibilities of repayment and that your creditors will receive just as much money as they would have had you filed for Chapter 7 Bankruptcy. The final step is getting the bankruptcy plan approved by a federal bankruptcy court. 

Creating this plan is actually a lot more difficult than it sounds. The plan will have to comply with a wide array of rules and regulations, many of which will be specific to Arizona. You will also have to prove within the plan that you possess enough disposable income to pay off your creditors in a timely manner. If your plan is missing any of these crucial points, it will not be approved and you will not be deemed eligible for Chapter 13 Bankruptcy.

For this reason, you will definitely want to consider hiring a knowledgeable bankruptcy attorney to help you create the plan and present it to a court. This professional should be local or, at the very least, knowledgeable of Arizona bankruptcy laws. Furthermore, the attorney should be a bankruptcy specialist for best results. If you do not choose to hire an attorney, you should be aware that you have a lot of work ahead of you. Creating a successful bankruptcy plan on your own and qualifying for Chapter 13 Bankruptcy can be next to impossible without the right help. If, after reading this, you still plan to do it alone, then definitely take the time to do your research and file correctly. An Arizona bankruptcy kit can be a great tool for beginning the process without legal aid. This kit will include all of the paperwork you need and will also detail the rules that are specific to Arizona alone.

When you’re in debt, it can be tempting to rush through the bankruptcy process as quickly as possible. This can be a huge mistake and can actually slow down the bankruptcy or end in you being declared ineligible. For best results, take your time, work with a qualified professional, and don’t cut corners. Spending a little extra time now will pay off in the end.