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Compassionate Legal Representation from Pontiac Bankruptcy Lawyers
Providing Dedicated Legal Services in the Area of Bankruptcy Law
Are you contending with overwhelming credit card debt, unexpected medical bills, creditor harassment, and other debts that are preventing you from improving your financial status? Oftentimes, when an individual ends up in debt, it can be difficult to overcome those debts and rise above them. If you are contending with overwhelming amounts of debt, it may be necessary to consider retaining professional legal representation from Michigan lawyers experienced in representing clients in bankruptcy cases and other forms of debt relief.
The MI lawyers of our legal team have several years of combined experience assisting clients in bankruptcy matters and related practice areas. We believe in providing compassionate and respectful legal services to clients in need across the Detroit area, including representing clients in Pontiac, Farmington Hills, Bloomfield Hills, Royal Oak, and Southfield, MI.
The decision to file for bankruptcy should never be taken lightly. However, bankruptcy filings can provide a fresh start to individuals overwhelmed by various types of debt. Additionally, by filing for bankruptcy, you will be granted an automatic stay, which halts further collection efforts by creditors, allowing you to breathe more easily as you contend with your financial difficulties.
It is highly recommended that you work with Michigan attorneys who are well versed in the state’s bankruptcy laws to learn more about bankruptcy cases. We would proudly represent your interests as you seek a fresh financial start for you and your dependents. Please contact our law office to schedule your free initial consultation today.
When to Consider Filing for Bankruptcy?
Filing for bankruptcy is not the right decision for everyone. With that said, however, the decision to file for bankruptcy could present you with a fresh start, allowing you to rebuild your credit and start over.
It may be a worthwhile decision to consider filing bankruptcy if any of the following conditions apply to you:
- You are in a dire financial situation and believe that there is no way for you to pay back your debts to creditors and lenders
- You believe that it may prove impossible to make your creditors agree to new payment terms
- There is the possibility of a creditor or lender filing a lawsuit against you for missed payments or seeking to seize your assets to serve as payments for your outstanding balances
If any of the above apply to you, we recommend that you carefully consider filing for either Chapter 7 or Chapter 13 bankruptcy. These are the most common types of bankruptcy for individuals facing insurmountable debt.
Our Pontiac, MI, law office offers free consultations to prospective clients interested in retaining our legal services. Please contact us to schedule your free case review today.
What is the Bankruptcy Process in Michigan?
In the first step of the bankruptcy process, you would contact our Michigan law firm to discuss your bankruptcy case and determine whether filing for bankruptcy is the right choice for you.
In preparation for beginning your bankruptcy case, you and your MI bankruptcy attorneys will begin gathering all necessary documentation, including pay stubs, bank statements, tax returns, receipts, and more.
You will be required to complete a credit counseling session. This session is usually inexpensive, takes less than an hour to complete, and can be conducted in person or over the phone.
With the legal assistance of your lawyer, you will begin preparing to file the bankruptcy petition with the bankruptcy court. Once filed, the bankruptcy courts place an automatic stay on your case. This stay prevents creditors from making further collection attempts from you, including phone calls, letters, wage garnishment, or lawsuits.
A bankruptcy trustee will be assigned to your case. It is the trustee’s responsibility to review your petition, schedules, and all supporting documents. The bankruptcy trustee also conducts a meeting with creditors, known as the 341 meeting, which you will be required to attend.
Depending on the type of bankruptcy that you choose, there may be a liquidation of non-exempt assets. Your Michigan lawyers can help you understand the exemptions and asset protection strategies.
If everything goes according to plan, the court will issue a debt discharge. Once this has been issued, you are no longer legally obligated to repay your discharged debts, thus granting you a fresh start financially.
What is Chapter 7 Bankruptcy?
In most bankruptcy cases, the courts issue an automatic stay as soon as your case is filed. This prevents creditors from making further collection attempts, automobile repossession attempts, home foreclosures, wage garnishments, and more.
Chapter 7 bankruptcy allows individuals with a large amount of unsecured debt to get a fresh start. Unsecured debts may include credit card bills, utility bills, payday loans, personal loans, and medical bills.
There are, however, certain limitations to Chapter 7 bankruptcy. For example, secured debts, such as car loans and mortgages, cannot be discharged by filing Chapter 7 bankruptcy unless you are willing to surrender those properties. If the majority of your debt is tied up in car payments or a mortgage, Chapter 7 bankruptcy may not be for you.
Individuals with significant assets may also wish to avoid Chapter 7 bankruptcy, as some of these assets may not be held exempt and could be seized by creditors.
Before you decide on the type of bankruptcy that’s right for you, we recommend consulting with MI lawyers about your case.
Who Can File for Chapter 7 Bankruptcy in Michigan?
In Michigan, Chapter 7 bankruptcy is meant for individuals in dire financial circumstances who are weighed down by insurmountable debt. However, not everyone qualifies for Chapter 7 bankruptcy. To determine whether you are likely eligible to file for Chapter 7, you must compare your income with the median income for a household of similar size in your state.
You can file your bankruptcy case immediately if your income falls below the threshold. If your income is above the median, you must complete a Chapter 7 means test.
What is Chapter 13 Bankruptcy?
Chapter 7 bankruptcy offers a nearly automatic discharge of all unsecured debts, while Chapter 13 bankruptcy provides individuals with a repayment plan to rectify their financial problems.
The three-to-five-year payment plan allows individuals to restructure and reorganize their debts while halting collection efforts over that period of time. Depending on your income and the amount of debt you are struggling with, it also may be possible to discharge some unsecured debts once you’ve successfully completed your repayment plan.
Chapter 13 bankruptcy provides a debt relief solution to those who have non-exempt assets that they fear they could lose if they file for Chapter 7 bankruptcy. Chapter 13 allows individuals a chance to catch up on their secured debt over time without the need to worry about losing their property or contending with constant collection efforts. Additionally, while not everyone qualifies for Chapter 7 bankruptcy because of their income levels, they may qualify for Chapter 13 bankruptcy.
Who is Eligible to File for Chapter 13 Bankruptcy in Michigan?
Chapter 13 bankruptcy is for anyone who is within the debt threshold and has sufficient monthly income to make regular payments in an attempt to repay their debts.
Additionally, Chapter 13 bankruptcy is for those who are concerned that their real estate property or other assets will not be fully protected from bankruptcy exemptions. Whereas Chapter 7 bankruptcy puts some of these assets at risk of being seized, Chapter 13 bankruptcy provides a way to repay your debts without losing your property.
What Debts Cannot Be Discharged by Michigan Bankruptcy?
While filing for bankruptcy discharges many debts, including credit card bills, utility bills, medical expenses, and more, certain debts cannot be eliminated in a Michigan bankruptcy case.
According to Michigan bankruptcy law, the following types of debts cannot be eliminated by a bankruptcy petition:
- Certain tax debts
- Debts incurred post-bankruptcy
- Fines and judgments related to past criminal activity or law-breaking
- Personal injury-related debt
- Student loans
- Unpaid spousal support or child support payments
- And in some cases, the debt of co-signers and guarantors
To learn more about the limitations of filing for bankruptcy, please contact our Michigan law firm to discuss your case with a Pontiac bankruptcy attorney today.
Schedule a Free Consultation with an Experienced Bankruptcy Lawyer in Pontiac, MI, Today
If you are facing foreclosure, contending with overwhelming amounts of debt, concerned about bankruptcy litigation, or are being harassed by creditors, we strongly encourage you to retain professional legal guidance from an experienced bankruptcy attorney in Pontiac, Michigan, today.
A Pontiac bankruptcy attorney from our law firm can assist you with all aspects of your bankruptcy case, from the initial filing fee through to the end of the case, where your debts will hopefully be discharged.
Sigal Law Firm has extensive experience representing clients in various bankruptcy cases and we would be proud to represent your interests as you seek a fresh start to your financial situation. To learn more about our legal services, please contact us to schedule your free case evaluation at 248-671-6794.