Declaring Bankruptcy in Michigan
Chapter 7 seeking a Discharge to Wipe Out Debt, also entitled Liquidation, this is by far the most common type of Bankruptcy proceeding. A Chapter 7 Bankruptcy contemplates an orderly, Court-supervised procedure by which a trustee takes over the assets of the debtor's estate, reduces them to cash, and makes distributions to creditors, subject to the debtor's right to retain certain exempt property and the rights of secured creditors. Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor's assets. In most cases, there are no assets that are not exempt or protected. These cases are called "no-asset cases." A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed. Amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require the application of a "means test" to determine whether individual consumer debtors qualify for relief under chapter 7. If such a debtor's income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief. In most cases, people are able to declare Chapter 7 Bankruptcy.
Chapter 13 Debt Reorganization, also entitled Adjustment of Debts of an Individual With Regular Income, is designed for an individual debtor who has a regular source of income. Chapter 13 is often preferable to chapter 7 because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a "plan" to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 relief under the means test. At a confirmation hearing, the court either approves or disapproves the debtor's repayment plan, depending on whether it meets the Bankruptcy Code's requirements for confirmation. Chapter 13 is very different from chapter 7 since the chapter 13 debtor usually remains in possession of the property of the estate and makes payments to creditors, through the trustee, based on the debtor's anticipated income over the life of the plan. Unlike chapter 7, the debtor does not receive an immediate discharge of debts. The debtor must complete the payments required under the plan before the discharge is received. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect. The discharge is also somewhat broader (i.e., more debts are eliminated) under chapter 13 than the discharge under chapter 7.
If you are facing foreclosure on your home, contact our Detroit Chapter 13 bankruptcy Attorney for an immediate appointment. Within days or even hours, we can bring a motion to court to stop the sale of your home. That’s the first step in some important decisions you need to make to get your financial affairs back in order.
Chapter 7 and 13 Bankruptcy Attorney
Walter A. Metzen
The same solutions don’t fit every client. At the Law Offices of Walter A. Metzen Michigan Bankruptcy Lawyer, we will go over your financial situation in detail with you to determine the best actions for you to take. If you have waited until the foreclosure sale is days or hours away, we can help you stop the sale so that you can face the reality of your circumstances and determine your best options.
Board Certified Bankruptcy Lawyer Walter A. Metzen a Michigan Bankruptcy Lawyer will give you a realistic assessment of your options. Our Michigan bankruptcy law firm will help you negotiate the solution that best meets your needs and circumstances. At this point, you need a realistic, orderly approach to get your finances back on track. Wayne County attorney Walter A. Metzen Michigan Bankruptcy Lawyer can help.
It is important for you to understand that there are many, many foreclosure scams out there. Even mortgage companies may be guilty of scams. A mortgage company may tell you that they want to work with you, structure a loan workout, and help you work things out. Unless you have this in writing from the company, be very wary. Many companies have been known to give their customers facing foreclosure a false sense of security and then change their minds.
Do not let this happen to you! Get in touch with me as soon as possible to discuss your foreclosure matters. I can move quickly in order to stop or delay the foreclosure in many situations. However, once a foreclosure has been executed, not even bankruptcy can save the property.
Contact me, Detroit foreclosure lawyer Walter Metzen today to schedule your free initial consultation. Let me help you understand your rights and explore your options.
We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code. Let us help you decide if bankruptcy is right for you.