Chapter 13 Individual Debt Adjustment
Chapter 13 of the Bankruptcy Code provides for the adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
Do you have a regular source of income, but are in financial trouble due to costly medical problems, divorce, an auto accident or some other temporary setback? If so, you may be eligible for bankruptcy reorganization and repay what you can afford over three to five years. You may also be able avoid foreclosure on your home and get some or all of your debts discharged in Chapter 13 bankruptcy.
We can help you enter into an affordable repayment plan.
Our friendly attorneys can explain why Chapter 13 bankruptcy may be right for you. Please contact us today for a free consultation.
Our attorneys have more than 20 years of combined experience helping people in Michigan through personal bankruptcy. We understand the emotional turmoil and fear people feel when their financial problems stagger out of control.
Chapter 13 “Wage Earner” Bankruptcy
Chapter 13 is a reorganization or repayment bankruptcy that allows the debtor to enter into an interest-free debt repayment plan to pay back all or some of the debtor’s debts over a 3 to 5 year period. During this time, creditors must abide by the plan and are not permitted to collect from you or contact you.
The crucial aspect of a Chapter 13 bankruptcy is that you must have regular income for you will be required to pay both your monthly living expenses and a repayment to the court for your consolidated debts.
In Chapter 13, you are required to submit a repayment plan to the bankruptcy court detailing how you propose to pay back your debts. Factors taken into consideration include how much you owe, how much you earn and how much you can afford to pay while still maintaining a reasonable standard of living. You may be able to get some or all of your debts discharged in Chapter 13 bankruptcy.
Chapter 13 bankruptcy is very powerful
Chapter 13 will allow you to keep your home and car while catching up with, reducing or eliminating your debts, typically over three to five years. Chapter 13 is also an option for people who have previously filed for bankruptcy and for people whose incomes are too high to qualify for Chapter 7.
Stop Foreclosure and Sheriff Sales
Is your home currently in foreclosure or have you received notice of an impending sheriff’s sale? Filing a Chapter 13 bankruptcy will stop the foreclosure or sheriff’s sale any time prior to the sale of teh house. The Chapter 13 filing will allow you to pay your mortgage arrears through the bankruptcy directly to your mortgage company.
Stop Creditor Harassment
Are creditors calling you at home and at work? Are they contacting your friends and family members? Put an end to your creditor harassment by speaking with one of our Michigan bankruptcy lawyers. Once you retain our office, you will be able to refer your creditors to us. The creditor harassment will stop immediately. Under some circumstances, this creditor harassment may be in violation of the Fair Debt Collection Practices Act (FDCPA) and you may have cause for further action.
Stop Repossession
Are you behind on your automobile payments? Are you in fear that your car is near repossession? A chapter 13 bankruptcy can help save your car and stop the finance company from moving forward with repossession. Contact one of our Michigan bankruptcy lawyers today and they can help you consolidate your past due payments as well as the balance on your car loan into the Chapter 13 bankruptcy. You will make one payment to the trustee and the finance company will not be able to move forward with repossession. Under some circumstances, our Michigan bankruptcy lawyers may even be able to recover your car after repossession and consolidate the balance of your car loan.
Prevent Utility Shutoffs
Worrying about utility shutoffs? Filing a Chapter 13 bankruptcy can stop creditors from shutting off your utility service. Contact one of our Michigan bankruptcy lawyers today to prevent a disruptive utility shutoff before it’s too late. We have three offices in Michigan to serve you better.
As with Chapter 7 bankruptcy, in filing for Chapter 13 you are required to undergo credit counseling before filing and debtor education after you file.
Whether you are self employed, a blue collar worker or an executive who has been downsized to a lower-paying job, we can explain everything you should consider before deciding which course of action is best for you.
Our attorneys will stand by you throughout the bankruptcy process. We will make sure you get the individual attention you need to recover from your financial problems, regain your self confidence and move forward with a fresh financial start.
Contact us for a FREE consultation