Financial Distress: How Attorneys in Chandler AZ Can Help

by | Jun 16, 2016 | Lawyers

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The last few years have not been the easiest financially. Thanks to one crisis after another, the individual has amassed a considerable amount of debt. While there was every intention of repaying every penny, it’s obvious that doing so is impossible. Now is the time to call one of the bankruptcy Attorneys in Chandler AZ and learn more about what can be done.

Here is what the attorney can do for the client.

Assessing the Financial Condition of the Client

Before any of the Attorneys in Chandler AZ will provide advice about bankruptcy, they will take a close look at the client’s financial condition. This is essential in order to determine if the client does meet the established criteria for any type of bankruptcy protection. The assessment will include a look at the amount of income the client has from all sources, any assets that the client owns free and clear, and the types of debt obligations that are part of the current situation. Assuming the client does meet the qualifications for bankruptcy, the next move will be to determine what form of protection would be best.

Bankruptcy and Priority Debt

it’s important to realize that not all forms of debt can be discharged in a Chapter 7 bankruptcy. Often referred to as priority debts, they can include obligations like past due taxes that do not meet the narrow criteria for dismissal, back child support payments, and student loan debt. If most of the debt carried by the client happens to be classed as priority, the attorney is not likely to recommend a Chapter 7 since it would accomplish little to nothing for the debtor.

When priority debt does account for most of the obligations, filing a Chapter 13 action makes more sense. Priority debts via payments made directly to the court. If there is still any time left on the three to five-year term of the bankruptcy, a portion of non-priority debts like credit card balances are also paid. Any balance remaining at the end of five years is discharged.

Stop worrying about how to get out of the financial mess. Click Here and arrange to meet with Asheton B Call today. After taking a good look at the situation, it will not be difficult to determine what type of bankruptcy action is in the best interests of the client.