Chapter 13 Bankruptcy Lawyers in Monroe, Michigan and Downriver Detroit
BRUCE LAW FIRM IS AN EXPERIENCED MICHIGAN CHAPTER 13 BANKRUPTCY LAW FIRM
Michigan Chapter 13 Bankruptcy Lawyer Serving Monroe, MI and Downriver Detroit
At Bruce Law Firm, we regularly guide clients in the Monroe, MI area through Chapter 13 bankruptcy proceedings. Well-versed in the applicable provisions of the U.S. Bankruptcy Code, our chapter 13 bankruptcy lawyers have a well-earned reputation for providing financially distressed individuals with informed representation and caring, efficient service.
Although a chapter 13 bankruptcy allows you to reorganize your debts while retaining your property, seeking bankruptcy protection requires careful consideration. When you consult with our bankruptcy attorneys, you can rest assured your interests will be protected. There are many factors that go into a bankruptcy filing and it is important to have knowledgeable counsel when making this decision.
Bruce Law lawyers understand that you are likely experiencing financial trouble through no fault of your own — a job loss, a medical emergency, unexpected expenses — which is why we will never judge you. Instead, our legal team will work closely with you to assess your finances and help you navigate a Chapter 13 bankruptcy filing.
By understanding your circumstances and objectives, we can help to design a workable repayment plan that allows you to improve your day-to-day financial picture. Above all, we are committed to helping you get back on your feet, which is why we offer affordable payment plans. If you are faced with insurmountable debt, don’t delay. Contact our office today to set up a free consultation.
Chapter 13 Bankruptcy: The Reorganization Bankruptcy
Chapter 13 bankruptcy is known as a reorganization bankruptcy because it affords you time to establish a plan to repay debts over a period of 3-to-5 years. While you get to keep your property, you must have a steady income and be able to keep up with the monthly payments proposed under the Chapter 13 plan. Chapter 13 plan payments can be made a variety of ways, including wage deductions, online payments, money orders, etc.
The plan requires you to repay your creditors with your disposable income, which is determined through a “means test.” Our bankruptcy lawyers will work with you to analyze your disposable income, mortgage arrears, priority debts, etc., do determine whether or not you have enough income to be successful in chapter 13 bankruptcy plan.
Depending on the circumstances and your disposable income, it may be possible to adjust or restructure monthly payments on secured debts into the payment plan, pay back a reduced amount to your unsecured debt, or eliminate unsecured debt entirely. Our attorneys will work to achieve the best possible outcome for you.
How Do I File a Chapter 13 Bankruptcy in Michigan?
At Bruce Law Firm, our chapter 13 bankruptcy attorneys have personally handled hundreds of bankruptcy petitions, so we are familiar with the rules and procedures of the local bankruptcy courts. We will work with you to draw up a repayment plan that is workable and that will pass muster with the court.
You should know that a court-appointed trustee will manage your case. He or she will conduct a meeting of creditors (a “341 Meeting”) to verify that you have sufficient income to make the proposed payments. Once the trustee, the court, and your creditors approve the plan, you will make monthly payments to the trustee, who will then distribute payments to your creditors according to an established schedule.
A Chapter 13 bankruptcy is discharged by court order once the payment plan has been completed — creditors will then be permanently barred from seeking payment for the discharged debt. It is important to remember, however, that not all of your debts will be eliminated.
What Debts will generally survive a Chapter 13 Bankruptcy?
Debts you will still be responsible for include:
- Child support
- Student loans
- Spousal support (alimony)
- Criminal fines
- Any debts not included in the plan
Finally, if you fail to keep up with the payment plan, your case will be dismissed and creditors can resume collection activities, including garnishments, foreclosures, repossession, evictions, and lawsuits.
Bankruptcy lawyers will determine if you Are You Eligible for Chapter 13 Bankruptcy
The point of filing for Chapter 13 is to provide you with some “breathing room” with regard to your debt. By reorganizing your loans into a 3 or 5-year plan with a single, regular monthly payment, you are able to take back control of your debt and rebuild your credit. Chapter 13 is also known as the “wage earner’s plan” because it is suited for people with a regular income.
Eligibility for Chapter 13 bankruptcy includes?
- Proof of wages enough to cover your monthly payment
- No more than $1.15 million in secured debts (including mortgage)
- No more than $383,175 in unsecured debts (credit cards, student loans, etc.)
However, keep in mind that under Chapter 13, all secured debts must be paid on time during the bankruptcy period. After the 5 year period, the remaining debt may be discharged if not paid back in full. By extending the life of your loans over 5 years, individuals are able to lower their monthly payment and make their debt repayment more manageable.
Benefits of Chapter 13 Bankruptcy
During your consultation, we’ll review your situation and whether it’s ideal for Chapter 13 bankruptcy. If you have a steady income and are behind on car and/or mortgage payments, this form of bankruptcy may be best.
Other benefits to Chapter 13 bankruptcy under US bankruptcy code may include:
- it stops home foreclosure
- it allows you to keep your home(even if you’re behind on the mortgage and gives you 3 to 5 years to catch up on your mortgage default)
- it stops repossessions
- it allows you to keep your car(even if you’re behind on payments and in some cases, pay the market value rather than actual amount you owe)
- it allows you to pay your non-dischargeable tax debts(with no further interest or penalties)
- it consolidates your debts into one manageable and affordable payment(with no direct contact with creditors while under Chapter 13 protection)
- it allows you to keep your valuable non-exempt property
- it allows interest rates on certain loans to be reduced and payment term on most debts to be extended during the 3- to 5-year bankruptcy plan.
Depending on the type of debt, some debts must be paid with interest. Repayment will vary based on the debtor’s income and the composition of the debt. Additionally, certain debts may be discharged in Chapter 13 bankruptcy that can’t be discharged in Chapter 7.
In short, a Chapter 13 bankruptcy is designed to give your breathing room so that you can get your finances back on track. The best way to navigate the process is to work with the experienced bankruptcy attorneys at Bruce Law Firm. We will take the time to explain your rights, explore all your debt relief options, and educate you about the process. We will also advise you on some of the limitations of chapter 13 bankruptcy. While chapter 13 can be the most powerful tool in this country to restructure debts, there are a few potential drawbacks.
Chapter 13 (as well as Chapter 7) will be listed on your credit report for a period of time. In addition, while you are in bankruptcy, you cannot take on new debt, buy anything on credit, or transfer property without prior court approval. Despite these drawbacks, a Chapter 13 bankruptcy can help you reorganize your debts and reset your financial future. When you work with our legal team, you will have peace of mind knowing that we are here to help lift your financial burden. We can review these in a free consultation.
Understanding Chapter 13 Bankruptcy
Gone are the Chapter 13 bankruptcy stories that tell of debtors selling their homes and possessions to discharge their debts. After consulting with law firms in Monroe, MI and selecting our attorneys to assist you, you’ll quickly learn there are other options.
Our Monroe bankruptcy office can help you file a petition for bankruptcy and propose a payment plan. The purpose of the three to five year payment plan is to use any money remaining after reasonable, court-approved expenses are deducted to pay for your debts. Once you’ve fulfilled the payment plan, you don’t have to pay any remaining dischargeable debt.
The Bruce Law Firm is expert at helping put the Bankruptcy Code to work for you. If we feel that a Chapter 13 bankruptcy is appropriate for you we will set you up with an appointment with an experienced bankruptcy attorney to assist you.
Contact Our Experienced Chapter 13 Bankruptcy Michigan Attorneys
When your debts are spiraling out of control and your financial future is in jeopardy, that’s the time to call Bruce Law Firm. We are highly regarded for helping our clients navigate both simple and complex Chapter 13 bankruptcy proceedings and for providing trustworthy advice when clients need it most. Above all, we will always put your best interests first and handle your case with the personal attention it deserves. Please contact our office today to speak with our experienced bankruptcy attorneys. We have offices located in Monroe, MI and Downriver Detroit and help people across Michigan.