Wayne County Bankruptcy Lawyers Well-Versed in Consumer Bankruptcy Law

Providing Dedicated Legal Services to Clients with Financial Difficulties in Detroit, MI

Are you buried under a mountain of overwhelming debt? You’re not alone. Many Michigan residents struggle with financial difficulties involving debts that they cannot overcome. There is a tendency within our society to shame those who consider filing for personal bankruptcy. However, for many individuals and their family members, bankruptcy may be the only debt relief option available to them. By filing for bankruptcy, a Michigan resident can achieve a fresh start, eliminating certain debts, including credit card debt, medical bills, payday loans, and more.

However, the decision to file bankruptcy should not be taken lightly and should only be considered after examining all other debt-relief options available. Depending on the type of bankruptcy you choose to go with, creditors and bankruptcy trustees could seize your personal assets to pay off your debts, and virtually every type of bankruptcy will have a negative impact on your credit score for at least a certain period of time.

When considering filing for bankruptcy or seeking other debt relief solutions, we recommend working closely with an attorney experienced in Michigan’s bankruptcy laws. At our law offices, you will work side by side with a compassionate bankruptcy lawyer who is well-versed in state and federal laws relating to bankruptcy cases. Our law firm offers free consultations to prospective new clients interested in retaining our legal services. Please schedule your free initial consultation with a bankruptcy attorney from our law office today.

Who Should Consider Filing for Bankruptcy in Michigan?

It is not advisable to file for bankruptcy without the assistance of legal representation. Unlike other lawyers, who may see your bankruptcy case as just another legal issue to resolve, we take pride in providing personalized legal services to individuals and their family members in dire financial circumstances.

Bankruptcy is not right for everyone. You may wish to consider filing for bankruptcy if any of the following apply to you and your financial standing:

You are facing foreclosure on your property
You’re living paycheck to paycheck with barely enough to make ends meet
You find yourself needing to borrow money constantly
Your financial savings have run out
You have incredible amounts of credit card debt
You are subject to creditor harassment on a regular basis
You are in danger of having your property repossessed
You’re struggling to support your family

Do any of the above sounds like you and your financial situation? If so, you can find answers to your questions by contacting our law office to schedule your free, no-obligation case evaluation. Many individuals face circumstances similar to yours, and there is no shame in seeking legal assistance when you are contending with overwhelming debt.

Will a Bankruptcy Filing Eliminate All of Your Debt?

Whether or not filing for bankruptcy will eliminate all of your debt depends on your debt and the type of bankruptcy you attempt to file.

The majority of consumer debt can be discharged with a bankruptcy filing. However, if you forget to list a debt in your bankruptcy petition, then that debt cannot be discharged.

Chapter 7 bankruptcy eliminates all of your unsecured debts. Unsecured debt includes credit card debt, hospital expenses, personal loans, and more. If you have secured debt, such as car loans or mortgage payments, you may wish to consider a Chapter 13 bankruptcy, which allows you to pay off your debts over three to five years.

Certain debts cannot be discharged by any type of bankruptcy. These include certain tax debts, alimony or spousal support obligations, child support payments, personal injury judgments, debts from tax advantage retirement plans, and more.

What is Chapter 7 Bankruptcy?

The most common type of personal bankruptcy is Chapter 7. Chapter 7 bankruptcy is a form of liquidation bankruptcy that eliminates your outstanding unsecured debts and grants you a fresh financial start.

During the Chapter 7 bankruptcy process, a bankruptcy trustee collects all of your assets and sells off non-exempt assets according to bankruptcy law. The liquidation proceeds are distributed to debt collectors.

There are several advantages to choosing Chapter 7 bankruptcy, not least of which is the fresh start that a bankruptcy discharge can grant you. Additionally, you will be granted an automatic stay, which halts creditor collection efforts, wage garnishment, and creditor phone calls.

No minimum amount of debt is required to file for Chapter 7 bankruptcy. In most bankruptcy cases, your case is concluded within about three to six months.

Our legal team can help you through the entire process of filing for Chapter 7 bankruptcy. To learn more, please schedule a free case review with our Detroit law firm today.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows individuals a chance to consolidate their debts while making monthly payments to a bankruptcy trustee. Sometimes referred to as a reorganization bankruptcy, Chapter 13 presents debtors with an opportunity to create a unique repayment plan that suits their needs and abilities.

The amount of monthly payments and the length of the payment plan will be based on the debtor’s monthly income, monthly expenses, and the nature of their debts. Secured debts are paid 100% on the dollar, while unsecured debts may be paid as little as 0% on the dollar. Once the payment plan is complete, the debtor receives a discharge of debts according to Chapter 13 bankruptcy law.

Unlike Chapter 7 bankruptcy, which puts your non-exempt assets in danger of being seized by creditors and bankruptcy trustees, Chapter 13 bankruptcy will protect your property and keep it in your possession. Common uses for filing Chapter 13 bankruptcy include preventing home foreclosures and stopping auto repossessions.

Chapter 13 bankruptcy is for debtors with a reliable source of income that makes them capable of paying back what they owe. Additionally, you must make under a certain amount of money to qualify for Chapter 13 bankruptcy in Michigan. If your income rises above the threshold, you will be required to take a means test.

What is an Automatic Stay?

As soon as you file bankruptcy in Michigan, the bankruptcy court will enact an automatic stay for your case.

An automatic stay prevents creditors from harassing you, making phone calls, and making further collection efforts. Additionally, an automatic stay halts any wage garnishments in your bankruptcy case.

By being granted an automatic stay, you will be provided an opportunity to prepare for your bankruptcy case in a timely manner without concern of creditor harassment. This is an essential part of every bankruptcy case.

Please contact our bankruptcy law firm to discuss your questions and concerns in a free initial consultation today.

Can an Experienced Attorney Assist You if You’re Facing Foreclosure?

Many homeowners misunderstand the Michigan foreclosure process. Every state has different foreclosure laws, making it vitally important that you work with Michigan attorneys to help you understand the complexities of our state’s rules and laws.

In most cases, it is possible to stop a foreclosure. If your MI bankruptcy lawyers determine that filing bankruptcy is the right course of action for you, you can rest assured that the foreclosure proceedings will come to a halt.

Chapter 13 bankruptcy helps prevent home foreclosure by restructuring your mortgage and other debts, reducing your overall debt, rebalancing your bank account budget, and resolving your debts within three to five years under the supervision of a bankruptcy court.

Understanding the complexities of stopping a foreclosure can be overwhelming. We encourage all interested parties to retain professional legal counsel from an experienced bankruptcy and foreclosure attorney. Please contact us to schedule your free case evaluation today.

Do You Require the Legal Counsel of an Experienced Bankruptcy Attorney?

While you are not legally required to retain representation from an attorney when going through the bankruptcy process, it is nonetheless highly recommended that you do so. The bankruptcy process can be complicated; any misstep could result in your case going wrong and your debts not being discharged.

As your legal representatives, our bankruptcy lawyers can assist you in the following ways:

Protect your assets as you seek to discharge unsecured debts
Put a stop to foreclosure proceedings
Work to protect your credit score
End your mortgage on good terms
Protect your interests against potential tax obligations
Explain the difference between secured and unsecured debt
Provide valuable legal services at an affordable fee
Treat you and your family with the respect you deserve
Lessen the stress and ease the burden on your shoulders throughout the entire process
And more

At our Wayne County bankruptcy law firm, we fully understand that filing for bankruptcy is a stressful and, in some instances, shameful legal matter. But please understand that we will address your bankruptcy case with the utmost respect and compassion as you seek a satisfying outcome to your financial difficulties.

How Long Will the Bankruptcy Process Take to Complete?

How long your bankruptcy case will take to resolve may depend upon several factors, chiefly the type of bankruptcy you choose.

In most Chapter 7 bankruptcy cases, your case will be resolved within three to six months from the bankruptcy filing date. Chapter 13 bankruptcies, on the other hand, may take between 3:00 to five years to complete.

Mistakes, complications, litigation, and other issues may prolong your bankruptcy case. In such instances, retaining professional legal representation is strongly recommended to help speed up the process.

Schedule a Free Consultation with a Compassionate Michigan Bankruptcy Law Firm Today

Sigal Law Firm has extensive experience representing clients in complex bankruptcy cases, and we would be proud to lend our legal knowledge to you as you contend with your financial difficulties. We are known for providing compassionate legal services in bankruptcy cases and related practice areas. We know that many individuals feel shame when they consider filing bankruptcy, but there is no shame involved in the process when you work with us.

To learn more about our legal services and how we may assist you during this difficult time, please contact our Wayne County law firm to schedule your free consultation with our legal team today.

You can reach us at 248-671-6794.