What Are Joint Custody Agreements?
Written by Canterbury Law Group

What Are Joint Custody Agreements?

A Joint Custody Agreement is a legal arrangement where both parents share responsibility for making decisions about their child’s upbringing and/or share physical custody of the child. Joint custody is generally considered to be in the best interest of the child, as it allows both parents to remain actively involved in the child’s life, even after separation or divorce. There are two primary types of joint custody: joint legal custody and joint physical custody. These may be combined in a single agreement or exist separately, depending on the situation.

1. Joint Legal Custody:

  • Definition: Joint legal custody means both parents share the right and responsibility to make significant decisions about the child’s life. This can include decisions about education, healthcare, religion, and general well-being.
  • Key Characteristics:
    • Both parents have equal say in major decisions, such as choosing schools, doctors, and religious upbringing.
    • Joint legal custody does not necessarily require the child to live with both parents equally, but both must collaborate on important matters.
    • The goal is to ensure that both parents are actively involved in making decisions that affect the child’s future.

2. Joint Physical Custody:

  • Definition: Joint physical custody means the child spends a significant amount of time living with both parents. This is often referred to as “shared custody” and aims to maintain strong relationships between the child and both parents.
  • Key Characteristics:
    • The child may spend equal or near-equal time with both parents, depending on what works best for the child and the parents. For example, one arrangement could involve the child spending weekdays with one parent and weekends with the other.
    • The time split doesn’t necessarily need to be exactly 50/50, but both parents must be heavily involved in day-to-day caregiving.
    • This arrangement is intended to minimize disruption for the child and promote a healthy relationship with both parents.

Key Elements of a Joint Custody Agreement:

A joint custody agreement is typically developed through a mutual understanding between the parents or with the assistance of a mediator or attorney. The terms of the agreement are usually formalized by the court. Here are the major elements that might be included:

  1. Time Sharing or Parenting Plan:
    • A clear schedule specifying where the child will be living at any given time, including weekdays, weekends, holidays, and vacations.
    • The plan may specify specific drop-off/pick-up locations and times for each parent, ensuring both parents have structured, predictable time with the child.
  2. Decision-Making Responsibilities:
    • The agreement outlines how major decisions (like medical care, education, and religious practices) will be made. This includes whether decisions require mutual consent or whether one parent has the final say in certain circumstances.
    • The agreement may specify how parents will communicate and resolve disputes, such as through mediation if there is a disagreement on a significant issue.
  3. Communication and Cooperation:
    • Joint custody requires effective communication and cooperation between parents. The agreement may specify how parents should keep each other informed about the child’s needs, appointments, and activities.
    • It can also address how parents should communicate with the child, especially if the parents are separated or live far apart.
  4. Visitation and Parenting Time:
    • If joint physical custody is in place, the agreement may specify how the child will spend time with each parent. This can involve a variety of schedules, including alternating weeks, weekdays with one parent and weekends with the other, or a 2-2-3 schedule (where the child spends two days with one parent, two days with the other, and alternates weekends).
    • It may also define how holidays, school breaks, and vacations will be divided between parents.
  5. Flexibility and Modifications:
    • The agreement may include provisions for making modifications to the schedule or decision-making process if necessary, based on changes in the child’s needs or parental circumstances.
    • It may specify that any changes must be agreed upon by both parents or be decided by the court if the parents cannot reach an agreement.
  6. Dispute Resolution:
    • The agreement might include a plan for how disputes will be resolved. This could involve seeking mediation or involving a family law court if the parents cannot agree on a matter related to custody or the child’s welfare.

Advantages of Joint Custody Agreements:

  • Maintaining Relationships: Joint custody helps ensure that the child has the opportunity to maintain a close relationship with both parents, which is often in the child’s best interest.
  • Shared Responsibilities: Parents share the responsibility for the child’s upbringing, including decision-making and day-to-day care, which can reduce the burden on one parent.
  • Stability and Consistency: Joint custody can provide the child with stability, as they are able to spend time in both households, often with similar rules and expectations.
  • Flexibility for Parents: Joint custody allows parents to share the workload, whether it’s taking the child to school, attending appointments, or managing extracurricular activities.

Challenges of Joint Custody Agreements:

  • Coordination Required: Joint custody requires good communication and cooperation between parents, which can be challenging if there is high conflict or a lack of cooperation.
  • Logistics of Time Sharing: If the parents live far apart, coordinating transportation and schedules can be difficult. It may require substantial time and effort for the child to adjust to different environments.
  • Emotional Impact on Parents: Some parents may find it difficult to share custody, particularly if they feel that they are not spending enough time with the child or if they are uncomfortable with the other parent’s decisions.

When is Joint Custody Likely to Be Awarded?

  • Healthy Parental Cooperation: Joint custody is often awarded when both parents can work together to make decisions in the child’s best interest and can maintain a civil relationship.
  • Child’s Best Interests: If the arrangement is in the child’s best interest, courts tend to favor joint custody, as it supports the child’s right to have a relationship with both parents.
  • Parental Fitness: Courts will consider whether both parents are fit to care for the child and have the ability to meet the child’s physical, emotional, and developmental needs.
  • Geographic Proximity: Joint custody is more feasible when both parents live relatively close to each other, making it easier for the child to spend time in both households.

Conclusion:

A joint custody agreement is an arrangement in which both parents share the responsibility for raising their child, either through shared decision-making (legal custody), shared living time (physical custody), or both. These agreements prioritize the child’s best interests by maintaining relationships with both parents and ensuring a collaborative approach to parenting. However, joint custody can require significant communication and cooperation between parents. If you are considering or working through a joint custody arrangement, it’s helpful to consult with a family law attorney to create a plan that works for both parents and the child.

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We are experienced family law attorneys and will work with you to obtain the best possible outcome in your situation. You can trust us to represent you fully, so you can get on with your life. Call today for an initial consultation! 480-744-7711 or [email protected]

What Are Joint Custody Agreements?
Written by Canterbury Law Group

Types of Parental Custody

Parental custody refers to the legal and physical responsibility parents or guardians have over their child or children. In the context of a divorce, separation, or child custody case, custody arrangements are determined to ensure the child’s best interests are served. There are several types of parental custody, and they can be categorized into legal custody and physical custody. Additionally, custody can be awarded as joint or sole custody, depending on the circumstances.

1. Legal Custody:

Legal custody refers to the right to make important decisions about the child’s life, including decisions about education, healthcare, religious upbringing, and general welfare. There are two types of legal custody:

  • Joint Legal Custody:
    • Both parents share the right and responsibility to make major decisions regarding the child’s life.
    • Parents are typically required to communicate and collaborate on decisions, even if they live in separate households.
    • Joint legal custody is awarded when parents are capable of working together in the best interest of the child.
  • Sole Legal Custody:
    • One parent has the exclusive right to make major decisions regarding the child’s life, without the input or consent of the other parent.
    • This arrangement is typically granted if one parent is deemed unable or unwilling to make decisions jointly or if it’s in the child’s best interest to have one primary decision-maker.

2. Physical Custody:

Physical custody refers to where the child lives on a day-to-day basis. There are two main types of physical custody:

  • Joint Physical Custody:
    • The child spends substantial time living with both parents. This doesn’t necessarily mean equal time, but both parents have significant involvement in the child’s daily life.
    • Joint physical custody is often the goal of courts, as it allows the child to maintain close relationships with both parents. The exact arrangement (such as how time is split) depends on what works best for the child and the parents.
  • Sole Physical Custody:
    • One parent is designated as the primary caregiver, and the child resides primarily with that parent.
    • The non-custodial parent may still have visitation rights or be granted certain parenting time, but the child primarily lives with the custodial parent.
    • This arrangement is often made if one parent is unable to provide a stable or safe environment, or if one parent has more availability to care for the child.

3. Types of Custody Arrangements:

In addition to the distinctions between legal and physical custody, custody arrangements can be tailored to fit the unique needs of the family. Some common types of custody arrangements include:

  • Primary Custody (Sole Physical Custody with Visitation):
    • One parent is the primary custodian, with the child living primarily with them.
    • The other parent typically has visitation rights, which may vary in frequency and duration (e.g., weekends, holidays, etc.).
  • Split Custody:
    • In this rare arrangement, each parent has custody of one or more children, meaning the children are divided between the parents.
    • This arrangement is usually only made if it’s in the best interest of each individual child, which could be the case if siblings have very different needs.
  • Bird’s Nest Custody:
    • In a bird’s nest custody arrangement, the child remains in the family home, and the parents take turns living in the home with the child.
    • This type of arrangement can be logistically challenging and often requires cooperation between the parents. It’s less common but sometimes used to minimize disruption to the child’s life.
  • Visitation or Parenting Time:
    • Even when one parent has sole physical custody, the other parent may be granted visitation rights (parenting time).
    • Visitation may be scheduled regularly or based on a specific agreement, depending on the circumstances.
    • Supervised visitation may be ordered if there are concerns about the safety or well-being of the child in the presence of one parent.

4. Custody Based on Parental Needs or Child’s Best Interests:

In some cases, the court may consider other factors in determining custody, such as:

  • Parental work schedules: If one parent’s work schedule allows more time to care for the child, they may be awarded more time with the child.
  • Parental fitness and behavior: Courts may assess whether one parent has a history of substance abuse, mental health issues, or domestic violence, which could impact the custody arrangement.
  • Child’s preference: Depending on the child’s age and maturity level, the court may take the child’s wishes into consideration, particularly in decisions about primary physical custody.

5. Third-Party Custody:

In some cases, custody may be awarded to a third party, such as a grandparent, relative, or family friend, especially if both parents are deemed unfit or unable to care for the child. Third-party custody can be temporary or permanent, depending on the circumstances.


Key Takeaways:

  • Legal custody relates to decision-making power regarding the child’s welfare, while physical custody deals with where the child lives.
  • Joint custody (both legal and physical) allows both parents to share responsibility, while sole custody means one parent takes primary responsibility.
  • Custody arrangements are ultimately based on the best interests of the child, which may include factors like the child’s relationship with each parent, parental fitness, and stability.
  • Visitation or parenting time can be granted to the non-custodial parent, and the specific terms are based on what’s best for the child.

Conclusion:

Understanding the different types of parental custody is essential for parents involved in custody disputes or planning for the future. Courts generally strive to keep both parents involved in the child’s life, as long as it is in the child’s best interest. If you are facing a custody case, it’s advisable to consult with a family law attorney who can guide you based on your specific circumstances.

Can I Keep My Car if I File Chapter 13?
Written by Canterbury Law Group

Can I Keep My Car if I File Chapter 13?

Yes, in most cases, you can keep your car if you file for Chapter 13 bankruptcy, provided that you can continue making your car payments and meet the requirements of the Chapter 13 repayment plan. Chapter 13 bankruptcy is a reorganization bankruptcy, which means that instead of liquidating your assets, you create a repayment plan to pay back part of your debt over a 3 to 5-year period.

How Chapter 13 Affects Your Car:

  1. Continue Making Payments:
    • If your car is financed (i.e., you still owe money on it), you can keep the car as long as you continue making your regular car payments during the life of your repayment plan. These payments would be part of your monthly obligations under the Chapter 13 plan.
    • Secured debt like car loans is typically included in your Chapter 13 repayment plan, so you’ll continue to pay off the car loan according to the terms of the plan. You may even be able to modify the loan under certain conditions (e.g., reducing the interest rate or extending the loan term).
  2. Treating the Car Loan in Chapter 13:
    • Car loans are secured debt, meaning the lender has a claim on your car if you default. However, under Chapter 13, you may be able to restructure the debt in a way that benefits you:
      • If your car’s value is less than the amount you owe, you might be able to reduce the principal balance to the current value of the car, a process known as “cramdown”. This only applies to vehicles purchased more than 910 days before filing (about 2.5 years).
      • You may be able to reduce the interest rate on your car loan as well, making the loan more affordable.
      • Late payments or arrears on the car loan may be included in the repayment plan, allowing you to catch up on missed payments over the course of the plan.
  3. If You Are Behind on Payments:
    • If you’re behind on your car payments when you file for Chapter 13, you can catch up on the missed payments through the Chapter 13 plan. The arrears (missed payments) are often spread out over the length of the plan, allowing you to keep the car while you work to make the car loan current.
    • If you fail to make the payments as required under the Chapter 13 plan, the lender may seek permission from the court to repossess the car, but as long as you stay current with your repayment plan and car payments, the car can be retained.
  4. Leasing a Car:
    • If you are leasing a car, the lease payments would be included in your Chapter 13 repayment plan as well. You can keep the car during the bankruptcy as long as you are current on the lease payments, and the lease terms are adhered to.
  5. Car Equity Considerations:
    • The equity in your car (the value of the car minus what you owe on it) could be factored into your Chapter 13 plan. If your equity exceeds the exemption amount allowed in your state, the trustee may require you to repay some of that value to unsecured creditors. However, this is generally less of a concern if you have a car with little equity or if your car qualifies for a full exemption under state law.

Key Points to Keep in Mind:

  • Chapter 13 gives you more flexibility to keep your car, even if you are behind on payments, as long as you meet the repayment plan requirements.
  • The amount owed on your car and whether you are current on the loan or behind will affect how it is handled in the plan.
  • You must keep up with payments on the car during the repayment plan in order to avoid repossession.
  • Car loans can be modified (through a cramdown, interest rate reduction, or repayment of arrears) depending on the value and terms of the loan.

When You Might Lose Your Car:

  • If you fall behind on the payments for your car loan or fail to comply with the terms of your Chapter 13 plan, the creditor may request permission to repossess the car.
  • If your car is leased, you may face difficulties if you cannot continue to make the lease payments. The lessor may repossess the car if you default.

Conclusion:

In Chapter 13 bankruptcy, you can generally keep your car as long as you can maintain the payments required by the bankruptcy repayment plan. This allows you to catch up on overdue payments or modify your car loan to make it more manageable. However, it’s essential to stay on track with your payments, as failure to do so could lead to repossession. If you have questions specific to your situation, it’s helpful to consult with a bankruptcy attorney, who can provide guidance based on the details of your car loan, equity, and overall financial circumstances.

Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale

Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business BankruptcyChapter 7 BankruptcyCreditor Representation, Chapter 5 ClaimsChapter 13 Bankruptcy, Business RestructuringChapter 11 Bankruptcy, and more.

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

Attorney Ad Litem: What It Means and What They Do
Written by Canterbury Law Group

Attorney Ad Litem: What It Means and What They Do

An Attorney Ad Litem is a lawyer appointed by a court to represent the legal interests of someone who is unable to represent themselves in a particular legal matter. The term “ad litem” is Latin for “for the lawsuit,” and an attorney ad litem is specifically appointed for the duration of a legal case to advocate for the interests of an individual who is otherwise unable to participate in the legal process.

The role of an attorney ad litem varies depending on the type of case, but generally, these attorneys are appointed in cases involving vulnerable individuals, such as minors, incapacitated adults, or individuals whose interests are at risk of being overlooked. Here’s an overview of what an attorney ad litem does:

Common Scenarios Where an Attorney Ad Litem is Appointed:

  1. Guardianship Cases:
    • When a person is petitioning for guardianship of another individual (such as a minor or an incapacitated adult), the court may appoint an attorney ad litem to represent the interests of the person who is the subject of the guardianship petition. The attorney ensures that the individual’s rights and well-being are considered in the decision-making process.
  2. Child Custody and Family Law Cases:
    • In child custody disputes, especially when there are concerns about the child’s welfare, an attorney ad litem may be appointed to represent the best interests of the child. This is common in divorce cases or cases of abuse or neglect, where the child may not have a voice in the proceedings.
  3. Child Protective Services (CPS) Cases:
    • When the state is involved in removing a child from their home due to suspected abuse or neglect, an attorney ad litem may represent the child’s interests during the case. The lawyer ensures that the child’s rights are protected, and that their voice is heard in court.
  4. Incapacitated or Mentally Ill Adults:
    • In cases where an adult is declared mentally incompetent or incapacitated (due to age, illness, or disability), an attorney ad litem may be appointed to ensure the person’s legal rights are protected, especially when decisions are being made about their health, finances, or living arrangements.
  5. Probate and Estate Cases:
    • In cases involving the distribution of a deceased person’s estate, an attorney ad litem may be appointed to represent heirs or beneficiaries who are unknown or have an unclear interest in the case.

What Does an Attorney Ad Litem Do?

The primary responsibility of an attorney ad litem is to advocate for the best interests of the individual they are representing. Here’s what they typically do:

  1. Investigate the Case:
    • The attorney ad litem will often investigate the facts surrounding the case. For example, in child custody or child protection cases, they may speak with the child, parents, guardians, family members, and other relevant parties. They may also gather information from medical professionals or social workers.
  2. Represent the Interests of the Individual:
    • Their job is to ensure that the interests of the person they represent are given proper consideration in court. This may involve arguing that certain decisions or actions should be made based on what is believed to be in the best interest of the individual.
  3. Participate in Court Hearings:
    • The attorney ad litem may attend hearings, present evidence, and argue in favor of the individual’s rights or interests. They may also make recommendations to the court about what would best serve the individual, especially in cases involving children or vulnerable adults.
  4. Ensure Legal Rights are Protected:
    • In cases involving incapacitated adults or minors, the attorney ad litem ensures that their legal rights are safeguarded, even if they cannot communicate or act on their own behalf.
  5. Recommend Decisions to the Court:
    • The attorney ad litem may provide the court with recommendations about what they believe is in the best interest of the person they represent. For example, in custody cases, they might recommend a particular living arrangement or visitation schedule for the child.

Attorney Ad Litem vs. Guardian Ad Litem:

  • While both roles involve protecting the interests of vulnerable individuals, there is a key difference:
    • Attorney Ad Litem: A lawyer appointed to represent the legal interests of someone, ensuring their rights are protected in a legal proceeding.
    • Guardian Ad Litem: A person, often not an attorney, appointed to act on behalf of someone who cannot make decisions for themselves. This person is more focused on making decisions about the individual’s welfare and providing recommendations to the court.

An attorney ad litem has the specific role of providing legal representation and advocating for the legal interests of the person, while a guardian ad litem focuses more on the overall well-being and protection of the individual.


When Is an Attorney Ad Litem Required?

  • Court’s Discretion: In some cases, the court may appoint an attorney ad litem at its discretion if it believes that an individual’s rights are at risk or if the individual is unable to represent themselves effectively. This can happen in cases involving minors, incapacitated adults, or complex family law matters.
  • Legal Requirement: In other cases, such as in child welfare proceedings, the appointment of an attorney ad litem may be a legal requirement to ensure that the interests of the child or vulnerable adult are properly represented.

Conclusion:

An Attorney Ad Litem plays a vital role in ensuring that individuals who are unable to represent themselves in legal matters—such as children, incapacitated adults, or individuals involved in guardianship or custody disputes—have a legal advocate to protect their rights and interests. This lawyer ensures that the person’s voice is heard in court, even when they cannot communicate their needs directly. The attorney ad litem investigates, advocates, and makes recommendations to the court, all while ensuring that the best interests of the individual are prioritized throughout the legal process.

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We are experienced criminal defense attorneys and will fight for you to obtain the best possible outcome. Our firm will rigorously represent you, so you can get on with your life. Call today for an initial consultation! 480-744-7711 or [email protected]

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

Written by Canterbury Law Group

Medical Bankruptcy

You can file for bankruptcy on medical bills. Medical debt is considered an unsecured debt, which means it is not tied to any specific property or collateral (like a mortgage or car loan). As an unsecured debt, medical bills can be included in both Chapter 7 and Chapter 13 bankruptcy filings.

Filing for Bankruptcy on Medical Bills:

  1. Chapter 7 Bankruptcy:
    • Discharge of Medical Debt: In Chapter 7 bankruptcy, most unsecured debts, including medical bills, can be discharged (eliminated) after the bankruptcy process is complete. This means you will no longer be legally obligated to pay those bills.
    • Eligibility: To qualify for Chapter 7, you must pass the means test, which examines your income, expenses, and family size to determine if you have the ability to pay back a significant portion of your debts. If you qualify, Chapter 7 can provide a quick way to discharge medical debt, often within 3 to 6 months.
    • Impact on Property: Chapter 7 is a liquidation bankruptcy, meaning that non-exempt assets (property or valuable items) might be sold to pay creditors. However, if you don’t have significant assets or they are protected by exemptions, you may be able to keep your property while discharging your medical bills.
  2. Chapter 13 Bankruptcy:
    • Repayment Plan for Medical Bills: In Chapter 13 bankruptcy, instead of discharging your debts right away, you will propose a repayment plan to pay back part of your debts over 3 to 5 years. The amount you pay will depend on your income, expenses, and other debts. Medical bills are included in this repayment plan.
    • Catch-Up on Medical Debt: If you are behind on medical payments or have accrued a significant amount of medical debt, Chapter 13 can help you catch up by consolidating your medical bills along with other debts into a single monthly payment.
    • Protection from Creditors: Filing for Chapter 13 will stop collection efforts, including harassment, lawsuits, or wage garnishment related to your medical debt.

Benefits of Filing for Bankruptcy on Medical Bills:

  • Discharge of Debt: Bankruptcy allows you to eliminate medical bills that are overwhelming your finances, giving you a fresh start.
  • Protection from Creditors: Filing for bankruptcy triggers an automatic stay, which immediately halts collection actions like calls, letters, lawsuits, and wage garnishment.
  • No Tax Liability on Discharged Medical Debt: Unlike some other types of debt, discharged medical debt is generally not considered taxable income, so you don’t have to pay taxes on the amount forgiven.

When to File for Bankruptcy on Medical Bills:

  • You have a significant amount of medical debt that you cannot afford to pay, and it’s affecting your financial stability.
  • You’re unable to make payments on medical bills due to high interest or accumulating fees, and creditors are threatening or pursuing legal actions.
  • You have other debts (e.g., credit card bills, personal loans) in addition to medical debt that you can’t manage and would benefit from bankruptcy protection.

Considerations Before Filing for Bankruptcy:

  • Effect on Credit Score: Bankruptcy will significantly impact your credit score, and the bankruptcy will stay on your credit report for 7 to 10 years, depending on the type (Chapter 7 or Chapter 13). This can make it more challenging to secure loans or credit in the future.
  • Exemptions and Property: If you file for Chapter 7, you may lose non-exempt assets if they can be liquidated to pay creditors. In Chapter 13, you must have a steady income to afford the repayment plan.
  • Medical Debt Alone May Not Be Enough for Chapter 7: If you only have medical debt and no other financial hardship, you might need to demonstrate that you meet the income and asset criteria for Chapter 7.

Alternatives to Bankruptcy for Medical Bills:

If bankruptcy doesn’t seem like the best option for you, there are other potential solutions for managing medical debt:

  • Negotiating with Healthcare Providers: Some providers may be willing to settle your debt for a lower amount or allow you to pay in installments.
  • Debt Consolidation or Credit Counseling: A credit counselor may be able to help you consolidate your medical bills into one payment or find other ways to manage debt without resorting to bankruptcy.
  • Debt Settlement: This involves negotiating with creditors to reduce the amount owed, typically for a lump-sum payment less than the total debt.

Conclusion:

Yes, you can file for bankruptcy on medical bills. Whether you file for Chapter 7 (which discharges the debt) or Chapter 13 (which reorganizes the debt into a manageable repayment plan) depends on your specific financial situation. Both options can provide relief from overwhelming medical debt, though there are potential impacts on your credit and assets. Consulting with a bankruptcy attorney can help you determine the best approach based on your individual circumstances.

Written by Canterbury Law Group

Should I File for Chapter 7 or Chapter 13 If I Want to Keep My Home?

Choosing between Chapter 7 and Chapter 13 bankruptcy depends on your financial situation and specific goals, including whether you want to keep your home. Each type of bankruptcy offers different benefits and consequences regarding property and debts.

Here’s a breakdown of both options to help you decide which might be better suited for you if your goal is to keep your home:

Chapter 7 Bankruptcy:

  • Liquidation bankruptcy: Chapter 7 is primarily a liquidation bankruptcy, where non-exempt assets may be sold to pay off creditors. It’s typically the faster of the two types of bankruptcy, often completing in about 3 to 6 months.
  • Eligibility: You must pass the means test to qualify for Chapter 7, which ensures your income is low enough to file for this type of bankruptcy.
  • How It Affects Your Home:
    • Exemption: In Chapter 7, you can keep your home if you are current on your mortgage payments and if your home is exempt under your state’s homestead exemption laws.
    • If your home has equity (the value of the home exceeds the amount owed on the mortgage), the bankruptcy trustee may sell it to pay creditors, unless the home equity is protected by the homestead exemption.
    • If you’re behind on mortgage payments, the lender may still proceed with foreclosure unless you catch up on payments through other means.
  • Debt Discharge: Chapter 7 eliminates most unsecured debts like credit cards, medical bills, and personal loans. However, it does not discharge secured debts like mortgages or car loans, so you must continue making payments on your home if you want to keep it.

Chapter 13 Bankruptcy:

  • Reorganization bankruptcy: Chapter 13 involves reorganizing your debt and setting up a repayment plan to pay back a portion of your debt over 3 to 5 years, based on your income, assets, and debt.
  • Eligibility: You must have a regular income and your unsecured debts must be less than $419,275, and secured debts must be less than $1,257,850 (as of 2023).
  • How It Affects Your Home:
    • Foreclosure Protection: Chapter 13 stops foreclosure proceedings and gives you an opportunity to catch up on past-due mortgage payments over time. You can keep your home if you can make the mortgage payments and any arrears as part of your repayment plan.
    • Retention of Property: You can usually keep your home even if you’re behind on payments, as long as you can afford to repay the arrears over the life of the repayment plan.
    • Revised Repayment Terms: If you owe a significant amount on your mortgage or other secured debts, you may be able to reduce the overall debt through the plan, although this can vary based on your specific situation.
    • Debt Discharge: At the end of the plan, any remaining unsecured debt that has not been repaid is discharged.

When to Choose Chapter 7:

  • You are current on your mortgage payments and don’t have a significant amount of home equity.
  • You are looking to eliminate unsecured debts quickly and start fresh, while being able to keep your home.
  • You don’t have significant assets to protect and don’t mind the potential risks of liquidation if there’s home equity that isn’t fully protected by the homestead exemption.
  • You don’t mind losing your home if it’s at risk due to unpaid mortgage arrears or foreclosure.

When to Choose Chapter 13:

  • You are behind on mortgage payments and want to avoid foreclosure. Chapter 13 gives you a chance to catch up on missed payments over a 3-5 year period, making it a good option for those at risk of losing their home.
  • You have significant home equity that would not be protected by Chapter 7 exemptions, or if you own other valuable assets you want to keep.
  • You want to restructure your debts, including mortgage arrears, and create a manageable repayment plan that allows you to retain your property.
  • You have regular income and can afford a structured payment plan over time.

Key Takeaways:

  • If keeping your home is a primary concern and you’re behind on your mortgage, Chapter 13 is generally the better option, as it allows you to reorganize your debts and catch up on overdue payments while preventing foreclosure.
  • If you’re current on your mortgage and have minimal home equity or don’t mind potentially losing your home (due to non-exempt equity), Chapter 7 may be an option to quickly discharge unsecured debts and keep your home.

However, the best choice depends on the specifics of your financial situation, such as the amount of mortgage arrears, home equity, income, and other debts. Consulting with a bankruptcy attorney can help you evaluate your situation and determine the most appropriate course of action based on your goals of keeping your home.

Carefully consider the advantages and disadvantages given above before discussing your bankruptcy with an attorney.  For more email the firm at [email protected] or call 480-744-7711.

Written by Canterbury Law Group

Does Guardianship Override Parental Rights?

Guardianship and parental rights are related concepts but can differ significantly in terms of authority and legal standing. While guardianship may involve a person being legally appointed to care for a child or manage a child’s affairs, it does not automatically override parental rights in all situations. However, guardianship can affect the scope of parental rights, especially if a court determines that the parents are no longer able or willing to fulfill their responsibilities.

Understanding Guardianship vs. Parental Rights:

1. Parental Rights

Parental rights refer to the legal rights and responsibilities that parents have in relation to their child. These rights include:

  • The right to make decisions about the child’s upbringing (education, medical care, religious practices, etc.).
  • The responsibility for the child’s welfare, care, and financial support.
  • The right to physical custody of the child and the authority to guide their life decisions.

Parental rights are generally inherent and come from the relationship between the parent and the child. They are typically protected by law, and courts usually favor preserving a parent’s rights unless there are compelling reasons to intervene (e.g., abuse or neglect).

2. Guardianship

Guardianship is a legal process where a court appoints someone other than the child’s parents to care for the child. A guardian may have full or partial custody and may be given authority to make certain decisions for the child, including decisions about healthcare, education, and living arrangements.

Guardianship can arise in situations where:

  • The parents are unable or unwilling to care for the child (due to illness, incapacity, or death).
  • The child is in need of care due to parental neglect or abuse.
  • The child has been removed from the home by child protective services for safety reasons.

A guardian’s authority can overlap with the parent’s rights, but it does not automatically strip parents of their parental rights unless the court specifically decides otherwise.


How Guardianship Affects Parental Rights:

  1. Temporary Guardianship:
    • In many cases, temporary guardianship does not override parental rights entirely. It may be granted for a limited period (e.g., if the parent is hospitalized or temporarily unable to care for the child).
    • The parents typically retain their rights and responsibilities, and guardianship ends once the parents are able to resume their role.
    • In cases of temporary guardianship, the guardian acts as a caretaker but may not make long-term decisions on behalf of the child without the parent’s consent or a court’s order.
  2. Permanent Guardianship:
    • Permanent guardianship can have a more lasting impact on parental rights. If a court grants permanent guardianship, it might significantly limit or even remove the parent’s ability to make decisions for the child.
    • Parental rights may be limited or terminated if the court finds that the parents are unfit (e.g., due to abuse, neglect, or long-term incapacity) and it is in the child’s best interest to be raised by someone else.
    • In some cases, permanent guardianship can permanently override parental authority over key decisions if the parents are deemed incapable of meeting the child’s needs.
  3. Parental Rights Termination:
    • In extreme cases, such as severe abuse or neglect, a court can terminate parental rights altogether, effectively ending the parent’s legal authority over the child.
    • After termination of parental rights, guardianship can continue with the new guardian assuming full legal responsibility, including adoption, where the parents are no longer part of the child’s life legally.
  4. Visitation and Custody Rights:
    • Even if guardianship is granted, parents may still retain some visitation or custody rights, depending on the court’s determination and the nature of the guardianship. This varies depending on the situation and jurisdiction.
    • A court may also specify certain conditions under which the parents can regain custody or decision-making authority in the future.

Summary:

  • Guardianship does not automatically override parental rights but can limit or affect them depending on the situation and court decision.
  • In cases of temporary guardianship, parents usually retain their rights and can regain custody once they are able to care for the child.
  • In cases of permanent guardianship, parents’ rights may be significantly reduced or terminated, especially if the court finds the parents unfit or if it is in the best interest of the child.
  • If parental rights are terminated, the guardian assumes full responsibility, and the parents no longer have legal authority over the child.

Guardianship typically involves the best interests of the child, and courts often aim to preserve family relationships when possible. However, in situations of abuse, neglect, or incapacity, guardianship may override parental rights to ensure the child’s safety and well-being.

Speak With Our Guardianship Lawyers in Arizona

Contact Canterbury Law Group today if you need an experienced child custody lawyer or guardianship lawyer in Phoenix or Scottsdale, Arizona to help with your case. Our experienced family law attorneys will work with you to achieve the best outcome for your situation. Call today for an initial consultation! 480-744-7711

Written by Canterbury Law Group

What Is Primary Physical Custody

Primary physical custody is a legal term used in family law to describe a custody arrangement in which a child primarily lives with one parent, who is then considered the “custodial” or “primary custodial” parent. The other parent, known as the “non-custodial” parent, usually has visitation rights or parenting time rather than daily residence with the child.

Here are the key aspects of primary physical custody:

1. Living Arrangements

  • In primary physical custody, the child lives with the custodial parent most of the time. This parent provides the child’s main residence, handles day-to-day care, and manages routines like schooling, meals, and bedtime.

2. Decision-Making (Legal Custody)

  • Primary physical custody differs from legal custody, which refers to the right to make significant decisions about the child’s life (like education, health care, and religious upbringing). It’s common for parents to share legal custody, even if only one parent has primary physical custody. Shared legal custody allows both parents to contribute to major decisions affecting the child’s future.

3. Visitation or Parenting Time for the Non-Custodial Parent

  • The non-custodial parent typically has scheduled time with the child, often through a structured visitation schedule that may include weekends, holidays, and summer breaks. Courts encourage a schedule that promotes meaningful contact between the child and both parents, as long as it serves the child’s best interests.

4. Benefits and Consistency for the Child

  • Primary physical custody can provide a stable home base for the child, which is often in their best interest, especially if they are young or need consistency for school, medical care, and social activities. It can reduce the back-and-forth of shared physical custody arrangements, which may be challenging for young children.

5. Impact on Child Support

  • Since the custodial parent bears more day-to-day expenses for the child’s care, the non-custodial parent may be ordered to pay child support to help with costs related to food, housing, schooling, and other essentials.

6. Modification of Primary Physical Custody

  • If there are significant changes in circumstances (like relocation, change in the child’s needs, or change in the parents’ ability to care for the child), the custody arrangement can be modified. Courts prioritize the child’s best interest, so any modification must align with their emotional, physical, and developmental needs.

Primary physical custody is an arrangement where one parent provides the main home and daily care for the child, while the other parent generally has visitation or scheduled parenting time. This type of custody aims to provide stability, while typically allowing both parents to remain involved in the child’s life.

Benefits of Primary Physical Custody

Primary physical custody can provide several benefits for the child, the custodial parent, and even the non-custodial parent. Here are some of the main advantages:

1. Stability and Consistency for the Child

  • Primary physical custody ensures the child has a single, stable home base, which can be particularly beneficial for their emotional and psychological well-being. With one primary residence, children often have a more consistent routine around school, meals, bedtime, and social activities, which can reduce stress and improve their sense of security.

2. Enhanced Academic and Social Development

  • Having a primary home base often makes it easier for children to stay on track with schooling, extracurricular activities, and friendships. This consistency helps minimize disruptions and can lead to better performance in school and more stable friendships, as they don’t have to frequently adjust to new environments.

3. Stronger Parent-Child Bond with the Custodial Parent

  • Since the child spends most of their time with the custodial parent, they have more opportunities to develop a close relationship with that parent. This parent is often the one who handles day-to-day activities, bedtime routines, homework, and care, helping to build trust and emotional security.

4. Clear Structure and Predictability

  • The custodial arrangement offers the child clear expectations and predictable routines, which are especially beneficial for younger children. A predictable structure can foster self-discipline, security, and healthy habits as they grow.

5. Reduced Travel and Transitional Stress

  • In a shared physical custody arrangement, children may feel stressed by frequently moving between two homes. Primary physical custody limits these transitions, allowing the child to settle into a single environment, which can be less tiring and confusing, especially for younger kids.

6. Simplified Decision-Making for Day-to-Day Care

  • With primary physical custody, the custodial parent typically has more autonomy over the day-to-day care and decisions for the child. This setup can make it easier to manage routines and respond quickly to the child’s needs, without frequent coordination between parents.

7. Support for the Non-Custodial Parent’s Role

  • With a set visitation or parenting schedule, the non-custodial parent still plays a significant role in the child’s life without needing to provide daily care. The arrangement can help non-custodial parents build a predictable and meaningful relationship with the child, allowing them to create memorable experiences during designated visitation times.

8. Financial Predictability

  • Because primary custody often involves a child support arrangement, it provides the custodial parent with a structured financial contribution from the non-custodial parent. This support helps the custodial parent meet the child’s needs more consistently.

9. Smoother Conflict Management

  • Since the child lives primarily with one parent, the potential for conflict over daily matters can be reduced. Having defined roles (custodial and non-custodial) and responsibilities can make co-parenting smoother, particularly if both parents are committed to reducing friction.

10. Flexibility for the Non-Custodial Parent

  • The non-custodial parent often has more flexibility with their work and personal life, as they are not responsible for daily child-rearing. This can make it easier to establish a visitation schedule that fits their lifestyle while still allowing them to maintain an important presence in the child’s life.

Primary physical custody can provide stability, routine, and a consistent home environment for the child, supporting their emotional, academic, and social development. It can also simplify the custodial parent’s responsibilities while allowing the non-custodial parent a supportive, consistent role in the child’s life.

What Are My Rights With Primary Physical Custody?

If you have primary physical custody of your child, you have certain rights and responsibilities regarding your child’s upbringing and daily care. Here’s a summary of the rights that typically come with primary physical custody:

1. Right to Make Daily Decisions for Your Child

  • As the primary custodial parent, you have the authority to make day-to-day decisions for your child. This includes choices related to meals, bedtime, discipline, activities, homework, and other aspects of their daily routine. These decisions generally don’t require consultation with the non-custodial parent unless they impact the child’s welfare significantly.

2. Right to Provide a Stable Home Environment

  • You have the right to provide a consistent and stable home base for your child. This means they primarily live with you, and you control the environment, structure, and daily routines within your home.

3. Right to Receive Child Support (if Ordered)

  • If the court ordered child support, you have the right to receive payments from the non-custodial parent to help cover costs related to the child’s care, such as housing, food, schooling, clothing, and other essential needs.

4. Right to Make Routine Health and Educational Decisions

  • You generally have the right to make routine decisions related to your child’s healthcare (e.g., dentist appointments, check-ups) and education (e.g., homework routines, involvement in school activities). However, for significant decisions—like major medical treatments or changing schools—legal custody rights come into play, and consultation with the other parent may be required if you share joint legal custody.

5. Right to Manage Daycare and Extracurricular Activities

  • As the primary custodial parent, you can typically decide on daycare arrangements, after-school programs, and extracurricular activities that fit your schedule and the child’s needs. You may not need approval from the non-custodial parent for these activities unless otherwise specified in your custody agreement.

6. Right to Modify Routines as Needed

  • You have the flexibility to adjust daily routines, bedtimes, and activities to best suit your child’s needs and changing schedules. As the custodial parent, you can adapt the routine as your child grows or if their needs change.

7. Right to Handle Emergency Situations

  • In case of emergencies, you can make quick decisions for your child’s welfare without waiting for the non-custodial parent’s input. This includes health emergencies or situations that require immediate action. If you share joint legal custody, you should inform the other parent afterward.

8. Right to Request Modifications to the Custody Order (if Necessary)

  • If your or your child’s circumstances change significantly (e.g., relocation, change in the child’s needs, or change in the non-custodial parent’s involvement), you have the right to request a modification to the custody arrangement through the court. The court will always prioritize the child’s best interests when considering modifications.

9. Right to Set Boundaries During Parenting Time with the Non-Custodial Parent

  • Although the non-custodial parent has visitation rights or parenting time, you have the right to request that they adhere to the agreed-upon schedule and respect boundaries that align with the child’s well-being. Courts support co-parenting, so setting boundaries should not interfere with the other parent’s relationship with the child but can help maintain structure and stability.

10. Right to Enforce Court Orders and Custody Agreements

  • You have the right to enforce the terms of your custody and visitation agreement, ensuring the non-custodial parent follows the schedule, returns the child on time, and adheres to any specific guidelines regarding parenting time. If the other parent violates the order, you have the right to address this legally through the court.

Additional Responsibilities

While primary physical custody gives you certain rights, it also comes with important responsibilities:

  • Fostering a Positive Relationship with the Other Parent: Courts expect primary custodial parents to encourage a healthy relationship between the child and the non-custodial parent.
  • Respecting Visitation Schedules: It’s your responsibility to facilitate the child’s relationship with the non-custodial parent by respecting and supporting visitation schedules.
  • Providing for the Child’s Needs: As the primary custodial parent, you are responsible for meeting your child’s physical, emotional, and educational needs daily.

With primary physical custody, you have the right to make everyday decisions for your child and provide a stable, secure home. However, significant decisions (like medical care or education changes) may require the involvement of the non-custodial parent if you share legal custody. You also have the right to request court support for enforcing the custody agreement if needed and to request modifications if circumstances change. Balancing these rights with your responsibilities helps create a supportive and stable environment for your child.

Speak With Our Guardianship Lawyers in Arizona

Contact Canterbury Law Group today if you need an experienced child custody lawyer or guardianship lawyer in Phoenix or Scottsdale, Arizona to help with your case. Our experienced family law attorneys will work with you to achieve the best outcome for your situation. Call today for an initial consultation! 480-744-7711

Written by Canterbury Law Group

Can I Pay Off My Chapter 13 Bankruptcy Plan Early?

It is possible to pay off a Chapter 13 bankruptcy plan early, but it can be complicated and may have both benefits and drawbacks. Read on to learn more.

1. Court Approval Required

To pay off your Chapter 13 plan early, you’ll typically need court approval. The trustee and judge will need to review your case to ensure early payoff aligns with bankruptcy laws and isn’t an attempt to avoid paying creditors fully.

2. Requirements for Early Payoff

The court may require you to pay the remaining balance of your debts in full. In Chapter 13, your payment plan may include paying only a portion of your debts if you qualify as a “below-median” income debtor. If you want to pay it off early, however, the court may require you to pay your unsecured debts in full, rather than the discounted amount from your payment plan.

3. Potential Loss of Discharge Benefits

One of the main reasons people file for Chapter 13 is to receive a discharge of certain debts after completing their plan. However, if you pay off your plan early, you might lose the ability to have some unsecured debts discharged at the end of the plan.

4. Financial Changes

If your financial situation has improved significantly (e.g., you received a windfall or substantial increase in income), paying off your plan early could be an option. However, be aware that the trustee might review your updated financial status and increase your required payments accordingly, rather than allowing early payoff with discounted debt.

5. Consultation with Your Attorney

It’s essential to discuss this option with your bankruptcy attorney. They can review your specific circumstances, help you assess whether early payoff is advantageous, and navigate the legal process to seek approval from the court if it makes financial sense.

Benefits of Paying Off Chapter 13 Early

  • Faster financial freedom and relief from bankruptcy restrictions.
  • Ability to rebuild your credit more quickly after the case is closed.

Drawbacks of Paying Off Early

  • Loss of potential discharge for unsecured debts.
  • Possible requirement to pay unsecured creditors in full, not the discounted amount under the original plan.

In short, while it is possible, it is generally wise to consult with your bankruptcy attorney to determine if early payoff is beneficial or whether completing the plan on its original schedule might be more advantageous.

How Chapter 13 Bankruptcy Works

Chapter 13 bankruptcy, often called a “wage earner’s plan,” allows individuals with regular income to develop a plan to repay all or part of their debts over a period of three to five years. It is designed for people who may not qualify for Chapter 7 bankruptcy or who want to retain certain assets, like their home or car, that might otherwise be at risk in a Chapter 7 liquidation.

Here’s a detailed overview of how Chapter 13 bankruptcy works:

1. Eligibility Requirements

  • Income Requirement: Chapter 13 is typically for individuals with a regular income. This income will determine the repayment plan’s length and monthly payment amounts.
  • Debt Limits: There are limits on how much debt you can have to file under Chapter 13. As of 2023, unsecured debts must be below $2.75 million, and secured debts below $2.75 million.
  • Non-Business Debts: Only individuals (not businesses) can file for Chapter 13, although self-employed individuals can qualify if the debts are personal rather than business-related.

2. Automatic Stay

  • Once you file for Chapter 13, an “automatic stay” goes into effect, halting creditors from pursuing collections, garnishments, foreclosures, or repossessions. This stay protects your assets while your repayment plan is being approved.

3. Developing a Repayment Plan

  • The core of Chapter 13 is a repayment plan that lasts three to five years.
    • If your income is below the median for your state, you may qualify for a three-year plan.
    • If your income is above the median, a five-year plan is typical.
  • The plan outlines how much you’ll pay each month based on your income, expenses, and debt obligations.
  • Priority debts (like taxes, alimony, and child support) must be paid in full, while unsecured debts (credit card debt, medical bills, etc.) may be paid at a reduced rate.

4. Trustee’s Role

  • A bankruptcy trustee is assigned to your case. The trustee reviews your repayment plan, ensures you are adhering to it, and distributes your payments to creditors each month.
  • The trustee also communicates with creditors and the court on your behalf.

5. Creditors’ Meeting and Plan Confirmation

  • Approximately a month after filing, you will attend a 341 meeting of creditors, where creditors can ask questions about your finances and the repayment plan. While it sounds daunting, most creditors don’t attend, and it’s usually straightforward.
  • Afterward, the court will hold a confirmation hearing to approve your plan. If the court confirms your plan, you’ll begin making payments.

6. Payments and Plan Duration

  • You’ll make monthly payments to the trustee, who distributes funds to creditors according to the plan. These payments are based on your “disposable income,” the amount you have left after necessary living expenses.
  • For the duration of your plan, you must continue making these payments, with very few missed or late payments allowed.

7. Discharge of Debts

  • After successfully completing the plan, the court discharges the remaining eligible debts. This means you’re no longer legally required to pay these debts.
  • Secured debts (like mortgages or car loans) must be fully paid if you want to keep the asset.
  • Some debts, such as student loans, certain taxes, and child support, aren’t discharged and remain your responsibility.

8. Advantages of Chapter 13 Bankruptcy

  • Protects Assets: Chapter 13 can help you keep your home, car, and other significant assets.
  • Catches Up on Missed Payments: It provides a structured way to catch up on overdue payments (e.g., mortgage or car payments).
  • Stops Foreclosure and Repossession: The automatic stay halts foreclosure proceedings, giving you time to bring payments current.

9. Disadvantages of Chapter 13 Bankruptcy

  • Length of Plan: The plan lasts for three to five years, which is longer than Chapter 7’s shorter process.
  • Impact on Credit Score: Filing will affect your credit score, and Chapter 13 remains on your credit report for seven years.
  • Commitment to Payments: You must adhere strictly to the repayment plan. Missing payments can lead to dismissal, which could put you back at risk of collection actions from creditors.

10. Chapter 13 vs. Chapter 7 Bankruptcy

  • Chapter 7 involves liquidating non-exempt assets to pay off debt and generally provides a quicker fresh start but might require giving up certain property.
  • Chapter 13 doesn’t require asset liquidation, and instead, focuses on restructuring debts through a repayment plan that lets you keep more of your assets.

Summary

Chapter 13 bankruptcy can be a valuable option for individuals who want to protect significant assets or are looking for a structured way to catch up on missed payments without having to liquidate assets. However, it involves a long-term commitment to a repayment plan and requires careful budgeting to keep up with monthly payments.

Why You Can’t Pay Off Chapter 13 Bankruptcy Early

Paying off a Chapter 13 bankruptcy plan early can be challenging due to the specific requirements and principles of Chapter 13 bankruptcy. Here are several reasons why it may not be straightforward—or even allowed in certain cases:

1. Requirement to Pay Debts in Full

  • Chapter 13 often allows debtors to pay only a portion of their unsecured debts (like credit card debt or medical bills), depending on their income and assets. However, if you want to pay off your plan early, the court may require you to pay unsecured debts in full rather than the reduced amount under the original plan. This is to prevent early payoff from becoming a way to reduce debt obligations unfairly.

2. Loss of Potential Discharge

  • One of the main benefits of Chapter 13 bankruptcy is the discharge of certain unsecured debts at the end of the repayment plan. However, if you pay off the plan early, you might not be eligible for this discharge, meaning you would remain responsible for repaying the full amount of any remaining unsecured debt.

3. Commitment to Repayment Period

  • The Chapter 13 repayment plan is designed to last three to five years, allowing you to make manageable payments over time. Bankruptcy laws require these minimum durations to ensure debtors are making an effort to repay as much as possible to their creditors based on their income.
  • For higher-income debtors, the law requires a five-year plan. If you try to pay it off early, the court may not approve it, as it goes against the structured repayment requirement.

4. Disposable Income Requirement

  • A core principle of Chapter 13 is that you must contribute your disposable income toward paying off your debts. If you’re able to pay off your plan early, it might indicate that you have more disposable income than originally calculated. The trustee or court may reassess your financial situation and increase your monthly payments, rather than allowing an early payoff.

5. Risk of Plan Dismissal or Modification

  • Attempting to pay off your Chapter 13 plan early can lead to complications with the trustee or creditors. In some cases, the court might choose to dismiss or modify your plan if you’re attempting early payoff, especially if they feel it circumvents fair repayment. This could mean you’d lose the protection of the bankruptcy, putting you back at risk of creditor collection actions.

6. Trustee and Court Approval

  • Early payoff requires trustee and court approval, and the trustee may object if it does not seem to be in line with bankruptcy law or the spirit of Chapter 13 repayment obligations. They might argue that allowing an early payoff would give you an unfair advantage over your creditors.

7. Judicial Interpretation and Fair Treatment of Creditors

  • Courts generally have discretion over Chapter 13 cases, and they aim to balance the interests of both debtors and creditors. An early payoff might appear to favor the debtor, which the court may see as unfair to creditors. The judge may deny the early payoff to ensure that creditors receive a fair amount of repayment based on the debtor’s long-term disposable income.

Alternative Option: Hardship Discharge

  • If you’re considering early payoff due to a change in your financial situation, you may be eligible for a hardship discharge, which would end your Chapter 13 plan early and discharge some debts. This option, however, is only available under certain conditions, such as if you’re facing financial difficulty due to circumstances beyond your control (e.g., severe illness or loss of employment).

In summary, while early payoff may sound appealing, Chapter 13 is structured to ensure creditors receive fair treatment and to prevent debtors from avoiding full repayment of debts when they have the means. If you’re considering early payoff, it’s wise to consult your bankruptcy attorney, who can help you assess options like hardship discharge or even converting to Chapter 7, if that may better suit your needs.

Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale

Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business BankruptcyChapter 7 BankruptcyCreditor Representation, Chapter 5 ClaimsChapter 13 Bankruptcy, Business RestructuringChapter 11 Bankruptcy, and more.

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

Written by Canterbury Law Group

How Long Does A Chapter 13 Bankruptcy Last?

Debts that Remain After a Chapter 13 Discharge

Chapter 13 bankruptcy typically lasts three to five years. The exact duration depends on your income:

  1. Three-Year Plan: For filers with a monthly income below the state median, the repayment period may be as short as three years, although you can choose to extend it to five years if you need lower monthly payments.
  2. Five-Year Plan: For those with a monthly income above the state median, a five-year plan is usually required to ensure creditors receive a larger portion of the repayment.

During the repayment period, you make regular monthly payments to a court-appointed trustee, who distributes funds to creditors. After successfully completing the plan and making all required payments, the court typically discharges any remaining eligible debts, officially ending the bankruptcy.

How Can I Pay A Chapter 13 Bankruptcy Off Early?

Paying off a Chapter 13 bankruptcy plan early is possible, but it’s a complex process that requires court approval. Here are some important steps and considerations if you’re thinking about paying off your Chapter 13 early:

1. Check if Early Payoff Is Allowed

  • Some Chapter 13 plans prohibit early payoff because paying off early could change how creditors are paid. The court may deny the request if they believe that paying off early would unfairly benefit you compared to creditors.
  • Review your plan documents or speak with your bankruptcy attorney to see if early payoff is an option.

2. Discuss with Your Bankruptcy Attorney

  • Your attorney can help you understand the rules specific to your case and jurisdiction and guide you on the best approach.
  • The attorney will also need to file a motion to modify the plan, showing the court your intention to pay it off early and requesting permission.

3. Ensure All Priority Debts Are Paid in Full

  • Priority debts (such as taxes, child support, and alimony) and secured debts (like a mortgage or car loan if included in the plan) must be fully paid before your Chapter 13 can be discharged.
  • Paying off early will typically require that all creditors, including unsecured creditors, receive as much as they would have if the plan went the full term.

4. Prepare to Pay All Unsecured Debts in Full

  • In many cases, the court may require that you pay all unsecured debts (such as credit cards or medical bills) in full if you want to finish early.
  • If your plan originally allowed partial payment on unsecured debts, the court might require you to pay 100% of these debts to close the case early.

5. File a Motion for Hardship Discharge (If Applicable)

  • If you’re seeking early payoff due to a significant financial hardship (e.g., job loss, medical issue), you may qualify for a hardship discharge.
  • A hardship discharge can grant you an early release from Chapter 13 without full repayment, but it requires court approval and is only granted under specific circumstances.

6. Consider the Impact on Credit Reporting

  • Even if you pay off your Chapter 13 early, the bankruptcy will still remain on your credit report for up to seven years from the filing date, rather than being removed sooner.
  • While paying off early may have some positive impact on creditworthiness, it won’t erase the bankruptcy from your credit history right away.

7. File a Request for Discharge After Early Payoff

  • Once all debts required by the court have been paid, you can file a request for a discharge of your Chapter 13.
  • The court will review your case to ensure all conditions are met before issuing a final discharge.

Potential Benefits and Drawbacks of Early Payoff

  • Benefits: Eliminates monthly payments, may improve debt-to-income ratio, and could give you more control over your finances.
  • Drawbacks: Early payoff can be costly if full payment of unsecured debts is required, and the bankruptcy remains on your credit report for the same period as if you had completed the full plan term.

In most cases, it’s best to consult your attorney to fully understand the pros and cons of paying off your Chapter 13 plan early. They can advise you on the best way to proceed and help you navigate the legal requirements.

Can You Change A Chapter 13 Plan Length?

Yes, you can request to modify the length of your Chapter 13 plan, either to shorten or extend it. Here’s how this works and what you need to consider:

1. Requesting a Plan Extension

  • If you’re struggling to keep up with your payments, you may be able to extend your plan up to the maximum five years (60 months), regardless of your original plan length.
  • Extending the plan can reduce monthly payments, making it easier to stay current.
  • A motion must be filed with the court, and you’ll need to show good cause, such as a reduction in income, unexpected expenses, or other financial hardship.

2. Requesting a Plan Shortening

  • To shorten your plan, you must typically be able to pay all priority and secured debts in full, and possibly all unsecured debts as well.
  • Shortening the plan may require court approval, especially if it changes the amount that creditors receive.
  • Courts sometimes approve a shortened plan if you’ve received a financial windfall, like a tax refund, inheritance, or settlement, that allows you to pay off your debts more quickly.

3. Filing a Motion to Modify the Plan

  • Modifying your plan requires filing a motion with the bankruptcy court, typically with help from your attorney.
  • In the motion, you’ll explain the reason for the requested modification and provide documentation to support it (e.g., income reduction for an extension, new funds for a payoff or shortening).
  • The court will hold a hearing to review the modification request, and creditors may object if they believe the change affects their recovery.

4. Considering the Impact on Discharge and Creditors

  • Shortening the plan may mean you’ll have to pay unsecured creditors a higher percentage (or the full amount) than originally planned.
  • Extending the plan won’t affect your discharge eligibility but may impact the overall amount of interest paid on secured debts included in the plan.

5. Hardship Discharge (If Plan Cannot Be Completed)

  • If you’re unable to continue the plan due to serious hardship (like permanent disability or job loss), you might qualify for a hardship discharge. This allows you to end the plan early and receive a discharge without paying in full, though it’s granted only in extreme cases.
  • The hardship discharge requires court approval and is typically reserved for situations where the inability to continue payments is beyond your control.

Modifying your Chapter 13 plan length can help you manage financial challenges or take advantage of a better financial position. Working closely with your bankruptcy attorney can help ensure the modification request meets court requirements and aligns with your long-term financial goals.

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