Experienced Genesee County Bankruptcy Attorneys

Helping Clients with Complex Financial Problems Seek a Fresh Start

Overwhelming, sometimes insurmountable debt can befall just about anyone. There’s no shame in that. Many Michigan residents owe outstanding amounts of debt to creditors and would be well served by various debt relief solutions. One such debt relief strategy would be to file for bankruptcy. In Michigan, bankruptcy laws are designed to relieve the stress of your financial situations, stop creditors, and allow debtors to discharge their debts in a legal fashion.

Unexpected medical problems, the loss of a job, a divorce, or some combination of these life events cause many bankruptcy cases. Whatever the cause of your financial distress, bankruptcy filing could potentially relieve that distress, granting you a fresh start.

The first step in any Bankruptcy case is to learn your legal options and how they address your financial needs. To better understand the bankruptcy proceedings, we advise you to schedule a free case review with our legal team of Flint bankruptcy lawyers. In your free, no-obligation case evaluation, a bankruptcy lawyer will review your options and explain the bankruptcy process while answering any of your questions or concerns. Our Flint, MI, law firm has extensive experience in bankruptcy cases and related practice areas. We are proud to help individuals and families with their debt consolidation efforts and bankruptcy petitions. To learn more about how we may assist you during this difficult time, please contact our law office to schedule your free initial consultation today.

What is Michigan Bankruptcy?

Filing for bankruptcy is the legal process that allows an individual or a business to eliminate or repay their debts under the protection and supervision of a bankruptcy court. Bankruptcy is designed to help a debtor overwhelmed by what they owe by giving them an opportunity to pay back debts or reorganize their debts as they seek a fresh financial start.

If you are contending with overwhelming amounts of debts, from medical bills, car loans, mortgage debts, and credit card debts, filing for bankruptcy may be a viable option for you.

When you file bankruptcy in Michigan, the courts will enact an automatic stay. Your automatic stay will prevent creditor harassment, halt wage garnishments, and stop collection efforts from debt collectors.

It is highly recommended that you work with experienced Flint bankruptcy lawyers when seeking to discharge credit card debt, medical expenses, and other types of debt. Our law firm operates in Flint, Michigan, and the surrounding cities. We understand that your finances are important to you, and we will do everything within our power to help you discharge your debts and protect your money and assets.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, arguably the most common type of bankruptcy, is a form of liquidation bankruptcy that helps you eliminate all of your unsecured debts and achieve a fresh financial start. Your clean slate will allow you to begin rebuilding your credit score and finances with any new income without concern about the debts you owe.

However, Chapter 7 bankruptcy has limitations. During the bankruptcy process, a trustee will sell any nonexempt assets. When the trustee sells your assets, they pay the debtor any amount exempted. The liquidation’s net proceeds are then distributed to debt collectors.

There are several advantages to choosing Chapter 7 bankruptcy, including the fact that no minimum amount of debt is required to qualify. Additionally, your bankruptcy case will usually result in your debts being discharged in a matter of months.

Chapter 7 bankruptcy cases are resolved with a fresh start for the debtor. They also involve an automatic stay, which provides protection against creditors’ collection efforts and any wage garnishment after filing.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a debt consolidation plan that allows debtors to create a comprehensive repayment plan. The plan will play out over three to five years, during which point the debtors will have the opportunity to repay what they owe in monthly installments.

The amount of monthly payments and the length of the payment plan will be based on the debtor’s monthly wages, expenses, and the nature of the debts.

Chapter 13 bankruptcy is commonly used to stop home foreclosures and auto repossessions. However, government debts, including tax debts, student loans, criminal judgments, and personal injury lawsuits, are not regularly discharged by Chapter 13 bankruptcies.

The advantage of Chapter 13 bankruptcy compared to Chapter 7 is that you get to keep most of your personal property instead of liquidating it. Additionally, any cosigners may be protected in a Chapter 13 bankruptcy, whereas in a Chapter 7 bankruptcy, they may be expected to take on the brunt of the debt.

Are There Alternatives to Filing for Bankruptcy?

Before you decide to file bankruptcy, it is important to understand your other debt-relief options. Such alternatives include debt consolidation, debt settlements, and credit counseling.

Debt consolidation involves combining multiple separate debts into a single loan for the purpose of letting the debtor repay those debts in a single monthly loan payment.

A debt settlement involves negotiating with creditors for a chance to lower the overall amount that is owed to them. This is not always possible, as some creditors refuse to cooperate or negotiate. In such instances, it is very worthwhile to have professional legal counsel in your corner representing your interests.

Credit counseling involves a counselor working with individuals to create debt management plans while offering guidance on budgeting and managing finances.

What is Secured and Unsecured Debt?

Unsecured debts are not backed by collateral, such as credit card debt, payday loans, personal loans, and medical bills. Filing bankruptcy can provide debt relief for unsecured debts by discharging them entirely or restructuring them to allow individuals a chance to repay what they owe.

Secured debts include mortgage payments and car loans. These types of debts are not as easily discharged, and if you are dealing with large amounts of secured debt, then we recommend considering Chapter 13 bankruptcy.

Not all debts can be discharged through bankruptcy. Non-dischargeable debts include domestic support obligations such as child support payments or alimony, student loans, benefit overpayments, personal injury debts, criminal judgments, court fines, and more.

How Can Bankruptcy Help with Wage Garnishments?

When you file bankruptcy, the court grants an injunction known as an automatic stay. The automatic stay prevents creditors from making continued efforts to collect debts and also prevents any wage garnishments.

Since the creditor is notified of the bankruptcy case, any and all wage garnishment must cease, even if the employer has not received a notification from the bankruptcy court. Any continued wage garnishment would be a violation of the automatic stay.

Filing for bankruptcy could stop a wage garnishment from continuing or from ever beginning in the first place. If you wish to get garnished money back that has already been taken, you must speak with an experienced bankruptcy lawyer in a timely manner.

Can Filing for Bankruptcy Prevent Foreclosure or Repossession?

If you’ve fallen into debt, you may face foreclosure or the repossession of personal property. Filing bankruptcy can either delay or stop these collection proceedings and may allow you to keep your real estate property.

Chapter 7 bankruptcy cancels any scheduled sale dates for your home by virtue of the automatic stay injunction. Chapter 13 bankruptcy restructures your debt to the creditors so that it allows you to pay what you owe in arrears over three to five years. During those three to five years, you will be allowed to stay in your home.

Whatever your financial situation, retaining professional legal representation from experienced bankruptcy lawyers is important. Our Flint law firm would be proud to represent your interests both in and out of bankruptcy court.

Schedule a Free Consultation with Our Genesee County Bankruptcy Lawyers Today

If you are struggling with overwhelming debt, it’s important that you understand that you are not alone. Many Michigan residents struggle with debt and consider bankruptcy as a lifeline and an option to achieve a fresh start financially. If you are considering filing bankruptcy, we encourage you to seek legal advice from our Flint bankruptcy lawyers today.

Sigal Law Firm has extensive experience in bankruptcy cases and related practice areas. We would be proud to represent your interests by providing compassionate and respectful legal services and pursuing a satisfactory outcome in your bankruptcy case.

To learn more about our legal services and how we may assist you during this difficult financial situation, please contact us to schedule your free consultation today. You can reach us at 248-671-6794.