In Arizona, bankruptcy courts adhere to the US 2005 Bankruptcy Act when qualifying consumers for their preferred chapter of bankruptcy. This requires them to establish eligibility based on their income level. For chapter 13, consumers must have an income that is higher than the median income for their area; this average for the state is $48,621. If a consumer wants to qualify for Chapter 13 in Casa Grande AZ they should have an income over more than $36,212.
Understanding Chapter 13 To begin the bankruptcy process, the consumer should gather documentation that shows all current income sources. They should acquire records of living expenses, debts, and information for all properties that they own outright or have an existing loan. The attorney will need tax returns for at least two years prior to the bankruptcy claim. This documentation is required for the attorney and judge to verify calculations needed to move forward in their case. The attorney calculates the consumer’s income along with their projected monthly expenses. It’s important for the consumer to choose the months of the year in which their expenses are the highest. The reason this concept is so urgent is that when the bankruptcy case begins, she or he is required to use all expendable income to pay their debts. The monthly expense allowance that is listed in the bankruptcy claim is based on the expense records that she or he presents to their attorney.
Consumers may experience higher monthly utility costs in either the summer or winter months. They should file their bankruptcy claim during the time in which their utility bills are heightened to allow for a higher monthly expense allowance. Consumers file Chapter 13 in Casa Grande AZ to help them settle their debts over time. This chapter of bankruptcy provides for an automatic stay that can prevent foreclosure. The case lasts between three and five years. Although it may seem overwhelming at first and may restrict the how the consumer utilizes their money, the benefits are greater than its limitations. Consumers who wish to file for this form of bankruptcy can contact Asheton B Call for further details about bankruptcy.
