CONTACT US

Arizona Chapter 13 Bankruptcy Attorney

Chapter 13 Bankruptcy

Your Rock Through Arizona Chapter 13 Bankruptcy

If you’re behind on your mortgage or car payments but still have income coming in, Arizona Chapter 13 bankruptcy can give you the time and legal protection you need to catch up — without losing your home or vehicle. Rock Law Firm, based in Gilbert, Arizona, has helped residents across the entire state build realistic repayment plans and stop foreclosure through Chapter 13 relief.

Attorney Jacob Goodman built Rock Law Firm on a simple idea: filing bankruptcy is already hard enough without a lawyer who makes you feel judged. We call ourselves the “nice guy law firm” because we take the time to understand your circumstances before recommending a path forward — and we offer low-down payment filing options for those who qualify.

Schedule your free consultation today
Happiest Clients
0 K+

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy — sometimes called a “wage earner’s plan” or reorganization bankruptcy — lets individuals with regular income repay debt over a three- to five-year court-approved plan instead of liquidating assets. Unlike Chapter 7, Chapter 13 is built around keeping property: your home, your car, and other assets typically stay with you while you catch up on missed payments and pay down eligible debt.

Chapter 13 is often the right tool when foreclosure or repossession is looming, when you have non-exempt assets you don’t want to risk in a Chapter 7 liquidation, or when your income is too high to qualify for Chapter 7 under Arizona’s means test. Filing triggers an automatic stay, which immediately stops most collection actions, foreclosure proceedings, wage garnishments, and creditor harassment while your case is pending.

Do You Qualify for Chapter 13 Bankruptcy in Arizona?

To file Chapter 13 in Arizona, you generally must meet the following requirements:

  • Complete credit counseling. Federal law requires an approved credit counseling course, available online, within 180 days before you file.
  • Have regular income. You need a steady source of income sufficient to fund a repayment plan — wages, self-employment income, and certain benefits all qualify.
  • Stay under the federal debt limits. As of the current adjustment (effective through March 31, 2028), your noncontingent, liquidated unsecured debts must be below $526,700, and your secured debts must be below $1,580,125. Congress is currently considering legislation that would replace these two limits with a single, higher combined cap of $2,750,000 — we track these changes and confirm the applicable limits at the time you file.
  • File a proposed repayment plan. You and your attorney will develop a debt management plan and submit it to the court and your creditors for approval.
  • Provide proof of income. Court and trustee review typically requires documentation of income for the prior six months.
Not sure if you qualify? Talk to our team

How the Arizona Chapter 13 Process Works

Unlike Chapter 7, Chapter 13 is built around repayment rather than liquidation, giving you time to catch up on secured debts while keeping your property. Here’s what the process typically looks like:

  1. Free case evaluation. We review your income, debts, assets, and goals to determine if Chapter 13 — or another chapter — is the right fit.
  2. Credit counseling course. You’ll complete an approved course within 180 days before filing.
  3. Document gathering. We’ll help you compile a list of creditors and debts, proof of income for the last six months, a list of property, and monthly living expenses (housing, utilities, food, taxes, prescriptions, childcare, etc.).
  4. Filing your petition and proposed plan. We file your case and a proposed repayment plan with the U.S. Bankruptcy Court for the District of Arizona.
  5. Meeting of creditors and confirmation hearing. The trustee and creditors review your plan; once the court confirms it, your plan becomes binding.
  6. Repayment period. You make plan payments to the trustee for three to five years while secured debts, priority debts, and a portion of unsecured debt are repaid.
  7. Discharge. Once the plan is complete, remaining eligible unsecured debt is typically discharged.

How Much of Your Debt Will You Repay?

Your Chapter 13 plan is built around your income, expenses, and the type of debt you owe:

  • Secured debts (like a mortgage arrearage or car loan) are generally repaid in full through the plan if you want to keep the collateral.
  • Priority debts — including recent tax obligations and current or past-due child and spousal support — must also be paid in full.
  • Unsecured debts (credit cards, medical bills, personal loans) are repaid based on your disposable income; whatever portion remains unpaid at the end of a successfully completed plan is typically discharged.

Whether your plan runs three or five years generally depends on whether your income is below or above Arizona’s median income for your household size.

Alternatives to Chapter 13 Bankruptcy

Chapter 13 can be a powerful tool, but it isn’t the only option for resolving overwhelming debt or stopping a foreclosure. Depending on your situation, alternatives may include:

  • Debt settlement plans: Negotiating a lump-sum or reduced payoff with creditors outside of bankruptcy.
  • Loan modification: Working with your mortgage lender to permanently change your loan terms.
  • Loan refinancing: Replacing your current loan with new terms to lower payments.
  • Formal repayment proposals: Negotiating directly with creditors for revised payment terms.
  • Short sale or deed in lieu of foreclosure: Structured ways to exit a home you can no longer afford without a full foreclosure.
  • Chapter 7 bankruptcy: A faster liquidation option for those with primarily unsecured debt and income below Arizona's median.

At Rock Law Firm, we don’t just process paperwork — we get to know your circumstances to evaluate whether Chapter 13 or another option truly serves your goals. Every consultation is judgment-free and focused on what actually works for you.

Schedule Your Free Arizona Chapter 13 Bankruptcy Consultation

Don’t face foreclosure or overwhelming debt in Arizona alone — let Rock Law Firm be your rock through the storm of debt.

request your free consultation online

Arizona Chapter 13 Bankruptcy: Frequently Asked Questions

Is Chapter 13 bankruptcy right for me?

Chapter 13 tends to work best if you’re behind on payments but have steady income to catch up over time. It’s designed for people who can realistically repay debts given more time. If you don’t have the income or assets to make repayment feasible, or if you carry a large amount of unsecured debt, other options — including Chapter 7 — may be more advisable.

In a Chapter 13 filing, you’ll repay most secured and priority debts in full, and typically a portion of your unsecured debt based on disposable income. Priority debts can include child and spousal support, recent taxes, and certain bankruptcy legal fees. Whatever eligible unsecured balance remains unpaid at plan completion is generally discharged. A thorough financial review determines exactly what you’ll repay.

Chapter 13 repayment plans run three to five years, depending on your income relative to Arizona’s median and the types of debt involved.

Yes. Filing triggers an automatic stay that immediately halts foreclosure proceedings. Your plan lets you catch up on missed mortgage payments over time while you keep making your regular ongoing payments, so you can save your home.

Chapter 7 liquidates non-exempt assets to quickly discharge unsecured debt, usually within a few months, and doesn’t involve a repayment plan. Chapter 13 lets you keep your property and repay debts over three to five years — it’s generally the better fit when you need to catch up on a mortgage or car loan, or when your income is too high to qualify for Chapter 7.