Drowning in debt is stressful and scary. Often, people are in this situation because they are very sick. Medical bills are the leading reason Americans are forced to declare bankruptcy. A sick person may not have the health and stamina to deal with the complex bankruptcy laws. A Bankruptcy Lawyer in Glendale AZ, can help them navigate this process. The lawyer will help the debtor effectively prepare for bankruptcy to protect as many of his assets as possible. It’s important for the debtor to understand which bills should be paid and which ones can be ignored.
The lawyer will review the debtor’s income because this determines whether they use Chapter 7 or Chapter 13 of the federal bankruptcy law. Only Arizona residents making less than the median income for Arizona citizens are allowed to use Chapter 7. Their income must have been below this level for at least six months. The attorney will also look at the type of debt that they have. Bankruptcy will not erase student loans, taxes, alimony or child support. If the person owns a business, he will be required to pay his employees any wages they are owed.
If the debtor qualifies to use Chapter7, the Bankruptcy Lawyer in Glendale AZ, will file the bankruptcy application with the court. The judge will appoint a trustee to oversee the process. The trustee will sell all of the debtor’s assets and distribute the proceeds among the creditors. Certain assets are protected by federal and state law. This varies among the states, and the lawyer will ensure that the trustee does not include any protected assets in the sale. Often, the debtor can keep his home, car, and tools that he needs to make a living. Keeping a home and car usually depends upon whether or not the debtor is current on the mortgage and car payments. That’s why it’s important to work with a lawyer to prepare for the bankruptcy process.
Asheton B Call is one of the lawyers in Glendale, AZ that guides people through bankruptcy. People who can’t pay their monthly bills can call him for advice and help.