Chapter 13 Bankruptcy Michigan Lawyer Serving Monroe, MI and Downriver Detroit

A Chapter 13 Bankruptcy Michigan is also called a wage earner’s plan. This type of debt relief enables individuals with regular income to develop a repayment plan for all or part of their debts, and pay them back over the course of three to five years depending on whether you are below state median monthly expenses or not.

If your current monthly household earnings fall below the applicable state median, then your payment schedule will be set at 3-years; if it exceeds this amount than 5-year payments apply.

Chapter 13 Bankruptcy Michigan is a way to get the debt relief that allows you to keep your assets, such as your car or house while reorganizing insurmountable Debt. A Chapter 13 Bankruptcy case will enable you to keep the property you might otherwise lose in a Chapter 7 Bankruptcy. A Michigan Chapter 13 lawyer can also stop an ongoing foreclosure if filed timely. It is essential to work with a knowledgeable Michigan Chapter 13 Bankruptcy attorney.

The Bruce Law Firm has helped many clients get the debt relief they need and deserve through a Michigan Chapter 13 bankruptcy. We have bankruptcy attorneys in Monroe, Michigan that are ready to assist you in filing your petition.  The filing the bankruptcy petition brings a debtor the benefit of the automatic stay. With the automatic stay, creditor harassment will stop. We’re happy to answer any questions about this type of bankruptcy so call us today!

chapter 13 bankruptcy in michigan

Michigan Chapter 13 Bankruptcy Cases are Filed in the US Bankruptcy Court

Although a chapter 13 bankruptcy allows you to reorganize your debts while retaining your property, seeking bankruptcy protection requires careful consideration.  Many factors go into a bankruptcy filing.  The US Bankruptcy Court administers bankruptcy cases. There are many differences between a Michigan Chapter 7 Bankruptcy and a Chapter 13 bankruptcy. It is essential to have a knowledgeable bankruptcy attorney when making this decision.

We can work with you to develop a plan so that your Debt doesn’t get more out of hand.  The If the situation is too overwhelming, don’t wait another day – contact us today for an appointment, and we’ll guide you through this process step-by-step!

What is a Michigan Chapter 13 Bankruptcy and How Does it Reorganize My Debts?

Chapter 13 bankruptcy reorganizes your Debt and forces lenders to accept repayments in a more manageable way. It allows you to make a monthly payment on all your unsecured Debt. It also can allow you to stretch out your monthly payments on secured Debt that can lower your monthly payment. The cost of filing a chapter 13 bankruptcy will vary based on the circumstances of your case.

Filing for bankruptcy is complicated and overwhelming, but our attorneys are here to help you, so it doesn’t have to be. Chapter 13 Bankruptcy Michigan is also known as reorganization bankruptcy because it affords you time to establish a plan to repay Debt over three or five years. You have the option of keeping your property while you get back on your feet and carrying out payments accordingly.

After filing the petition, the debtor proposes a repayment plan. Our goal in drafting a Chapter 13 payment plan is not based on totaling your assets or paying off your debts outright. It is also possible to pay back less to your unsecured loans. Our attorneys will work on filing a plan that uses your disposable income to repay your Debt portion.

If you are facing bankruptcy or Debt, understanding how much disposable income you have available is essential. Our experienced legal team will work with you to analyze your financial situation and decide if it qualifies for a chapter 13 bankruptcy in Michigan. It is possible to lower monthly payments on secured loans in a chapter 13 plan. 

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Federal Bankruptcy Exemption v Michigan Bankruptcy Exemption

Another area the chapter 13 trustee and your creditors will review are your bankruptcy exemptions. An exemption is an amount a debtor can keep in a bankruptcy filing.

Michigan bankruptcy laws have a state system of exemptions. The Michigan exemption dealing with your homestead is very generous and often used. Michigan bankruptcy exemptions are not the only exemptions available.

Nonexempt property can be taken and sold by the Trustee. It is essential before filing your case to understand how the exemption process works.

Bruce Law Firm’s bankruptcy attorney has extensive experience with filing hundreds of bankruptcies in the local courts. With our experienced legal team, your debt repayment plan will be a workable option that is permissible for the Court.

Chapter 13 bankruptcy can help you to establish a fresh start

Once you file your bankruptcy petition, the Court will schedule a chapter 13 341 meeting of creditors. As part of these proceedings, your attorney will meet with creditors and the Trustee to verify that you have sufficient income for payments on your proposed plan.

The Chapter 13 Trustee is appointed to represent your unsecured creditors. The Trustee will seek to have you pay back the maximum amount possible for your creditors’ benefit.

Once your creditors and the Trustee are satisfied with your proposed plan, your plan will be confirmed. Once your plan is confirmed, you will make three to five years of payments to the Bankruptcy Court.

What Debt will generally survive a Chapter 13 Bankruptcy Michigan?

A Chapter 13 bankruptcy is an excellent way to regain control of your finances and allow you to discharge some debt. However, it’s essential not to forget that there are still obligations lingering after the process has finished.

There are many types of debts that can be included in bankruptcy proceedings. Some will fall by the wayside when your case is completed, but others like back child support, criminal fines and restitution and a student loan stay on you unless they’re paid off as part of a plan. Priority tax debt has to come first, though, so it must be repaid for the life span of your repayment plan if not cleared up beforehand.

If you have any questions or would like more information on what obligations survive your discharge, contact an experienced bankruptcy attorney today! We are here to help!

What happens if you fail to make the required plan payments?

You must stay up to date with your payment plan. If for any reason, this becomes impossible, it may trigger a dismissal order in your bankruptcy case, and a creditor can resume collection activities. If your chapter 13 case is dismissed, it is like you never filed.

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Bankruptcy lawyers will determine if you Are Eligible for Chapter 13 Bankruptcy

Chapter 13 bankruptcy is an option for any individual, even if they are self-employed or operating a small business. The eligibility requirements depend on both your unsecured debts and secured ones – as long as these two totals do not exceed certain thresholds you should qualify for Chapter 13 bankruptcy protection!

Unsecured debts are less than $394,725 and secured debts are less than $1,184 200 for an individual to be eligible for chapter 13 relief. The amounts adjust periodically based on the change in consumer prices.

 

The point of filing for Chapter 13 is to give you control over your debt situation. By reorganizing your loans into a three or five-year plan with one monthly payment, you can take back the reins and rebuild good credit while getting out from under burdensome interest rates that make it challenging to keep up with payments on time each month. It’s also called “the wage earner’s plans” because they’re fitted towards people who earn an income daily.

What are the Benefits of a Michigan Chapter 13 Bankruptcy

There are many benefits to filing a Michigan Chapter 13 Bankruptcy. You’ll be able to keep your property while paying off creditors.  We will review your financial situation during your initial consultation and whether it’s ideal for Chapter 13 bankruptcy. If you have regular, recurring income, this type of bankruptcy could also be best.

Stop Foreclosure When You Are Behind on Your Mortgage Payments

If you’re unable to make your mortgage payments, there are options available that might be able to help keep you out of foreclosure. Under a Chapter 13 bankruptcy, the lender must stop the process of foreclosing on your home while under this type of filing. It’s important to plan ahead if you want bankruptcy protection.

Eliminate Tax Debts Without Paying Excessive IRS Interest and Late fees

Chapter 13 bankruptcy allows you to pay your non-dischargeable tax debt with no interest. This is a great option if you are worried about the IRS seizing and liquidating assets in order to collect on unpaid back taxes.

Save Your Car From Repossession When You Are Behind on Your Payments

Chapter 13 of bankruptcy law will help you keep your car, even in certain cases where the bank is threatening to repossess it. Chapter 13 allows debtors to repay creditors over time and offers a repayment plan that includes paying back what they owe.

Consolidate Debt payments into a Single Payment

You can consolidate all your debts and monthly payments into a single manageable one. The best part is that you do not need to communicate with any of the creditors while under Chapter 13 protection, so sharing becomes much more manageable!

Keep Property Otherwise Lost in a Chapter 7

Chapter 13 allows you to keep your valuable nonexempt property, and it also protects the integrity of the bankruptcy process. Chapter 13 is a way for people with significant assets but who have fallen on hard times financially, protecting those assets. At the same time, they reorganize their finances to emerge from Debt without losing everything.

Discharge Debts not Eligible in Chapter 7

Chapter 13 bankruptcy Michigan is a great way to discharge certain debts that can’t be discharged in Chapter 7.

Chapter 13 bankruptcy provides a court-mandated repayment plan to give debtors time to get their finances under control. Our lawyers will take the time to explore all your debt-relief options and educate you about our process. We’ll also advise on some of the limitations of chapter 13 bankruptcy while making sure it still has a lot more benefits than other forms of relief can’t offer!

Problems with a Chapter 13 Bankruptcy Filing

Chapter 13 Bankruptcy will be listed on your credit report for ten years. However, it will not affect you in the same way that Chapter 7 bankruptcy would. In Chapter 13, you are making payments on your debts which can be a good thing.

Chapter 13 involves the voluntary surrender of particular interests in property and assets to your bankruptcy trustee. You cannot take on new Debt or make any significant decisions about your property without court permission. Often a motion to the bankruptcy court will be required.

When you work with our legal team, we will take a load off your shoulders. We can review these in a free consultation and help to alleviate any financial burden.

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Contact an Experienced Michigan Chapter 13 Bankruptcy Attorney Today!

The Bruce Law Firm, a bankruptcy law firm, can help you understand if Chapter 13 bankruptcy is the best solution for your financial obligations. We offer free consultations to put your mind at ease, and we also work with a discrete group of professionals who have been assisting families with their Chapter 13 bankruptcies for years.

 

To learn more about understanding and to manage the effects of bankruptcy, contact the Bruce Law Firm. Get the legal advice you need.

Our team includes experienced professionals who are experts in the field. We will always put your best interests first and handle your case with the personal attention it deserves.

Contacting our office is the first step to learn how to file for chapter 13 bankruptcy. Get in touch with our experienced bankruptcy lawyer today. We have offices located in Monroe, MI and Downriver Detroit and serve clients across Michigan.

We are a debt relief agency and attorneys. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.