The Arizona Bankruptcy Solution
Chapter 13 Bankruptcy-The Relief you need to again Succeed
Re-focus and Re-establish towards a new future

Chapter 13 Info

Uncertain economic times and unexpected incidents in life may create financial instability, resulting in an inability to meet debt obligations. A Chapter 13 Bankruptcy gives debtors faced with these uncertain times the power to regain control of their lives, and the freedom to focus on moving forward. Chapter 13 Bankruptcy is often referred to as the “reorganization” of debts for individuals who have regular income. Often debtors utilize a Chapter 13 Bankruptcy to stay foreclosure actions or repossessions and catch up on missed payments, so that they may keep their property.

Eligibility

Chapter 13 Debtors must show regular monthly income sufficient to support repayment of unsecured debts. The Chapter 13 Means Test is used to calculate the Chapter 13 Debtor’s Disposable Monthly Income. A Chapter 13 Bankruptcy Payment Plan is submitted to the court. This Plan outlines the repayment of past due and unsecured debts based on the Chapter 13 Debtor’s Disposable Monthly Income. Plan terms are typically 3 or 5 years.

Chapter 13 Bankruptcy Process

Once we determine your household’s Disposable Monthly Income supports a Chapter 13 Bankruptcy Plan what happens? You must provide your Chapter 13 Bankruptcy Attorney Kaveh Mostafavi the information he needs to complete your Chapter 13 Bankruptcy petitions, schedules and statements and Proposed Plan. Once you retain The Law Office of Kaveh Mostafavi, Kaveh will give you a “List of Documents Needed” and quote you the “FEES”. Once you submit the documents and fees Kaveh and his team will complete your Chapter 13 Bankruptcy Filing. In the meantime, you are required to complete the pre-filing mandatory Credit Counseling Briefing. We sign you up for the class online or telephonically. You will be given a login and password to take the class. Each debtor will need to complete the class, at which point The Law Office of Kaveh Mostafavi will receive your Certificate of Completion and file it with the Bankruptcy Court.

Once we have completed your Chapter 13 Bankruptcy petitions, schedules and statements and Proposed Plan you will review the documents and sign them. We must ensure that on the day that we file you only have $150(single debtor) or $300(joint debtor) in all your bank accounts. Your Chapter 13 Bankruptcy Attorney Kaveh Mostafavi will go over all the “ARIZONA BANKRTUPCY EXEMPTIONS” with you to make sure your assets are protected.

After we file your Chapter 13 Bankruptcy you will receive 2 letters so please make sure to check your mail regularly. These will arrive approximately 1-2 weeks after filing. One letter will come from the Bankruptcy Court notifying you of the time and date of your “341 MEETING OF CREDITORS”. The second letter will be a request for documents from the Chapter 13 Bankruptcy Trustee. Please adhere to all requests and recommendations of the Chapter 13 Trustee before your hearing date.
30-45 days after the Chapter 13 Bankruptcy file date you will attend your 341 Meeting of Creditors with Kaveh. By this date you should have made your first Plan Payment. Please show up on the day on your notice approximately 15 minutes early. Kaveh will meet you at the courthouse to prepare you. Please ensure you have a valid identification card and your Social Security card.
After your 341 Meeting of Creditors you will need to complete the second mandatory Debtor Education course online or telephonically.

What happens to my assets in a Chapter 13 Bankruptcy?

In Arizona, Chapter 13 Debtors are given “EXEMPTIONS” for their personal property. For example, each debtor is given a $5,000 exemption for a vehicle. This means that as long as your vehicle has $5,000 or less of equity you can keep it. The Homestead Exemption is $150,000.

Ask Chapter 13 Bankruptcy Attorney Kaveh Mostafavi to discuss your options if you have non-exempt property in a Chapter 13 Bankrtuptcy.

The options Chapter 13 Bankruptcy Debtor’s are given in a Chapter 13 are different than in a Chapter 7 Bankruptcy. Filing a Chapter 13 Bankruptcy will stop the repossession. A Chapter 13 Bankruptcy allows a debtor to catch up on back loan payments in order to keep the vehicle.

Chapter 13 Bankruptcy Cram Down:

A Chapter 13 Bankruptcy allows the debtor “cram down” the debt on their vehicle to its Fair Market Value when debtor has owned the vehicle for greater than 910 days (2.5 years). The new amount is paid throughout the term of the plan.

Chapter 13 Bankruptcy Attorney Kaveh Mostafavi has filed several Chapter 13 Bankruptcy petitions, schedules, statements and Proposed Plans. Kaveh has successfully confirmed these Proposed Plans after Trustee’s Recommendations. Kaveh strives to ensure his clients receive the maximum benefit the law allows. Furthermore, he wants his clients to be confident that Kaveh represents them during the pendency of their Chapter 13 Bankruptcy with the utmost candor, diligence and professionalism.