At the Michigan law offices of BartNow, our attorneys are dedicated to helping you stop creditor harassment. Sleazy debt collector tactics are routinely used in order to attempt to recover some of the money that you owe the creditor or the company they represent. We can assist you in taking control of these matters and ending the harassment you may be experiencing.
When a bankruptcy is filed and a creditor has received notice of the filing, an automatic stay goes into effect. This means that your creditors cannot do anything to attempt to collect on a debt while this stay is in place.
Creditors cannot:
• Call your home or place of business
• Write you a letter
• Send you a bill
• Foreclose on a property
• Repossess property
• Garnish wages
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Monday, May 25, 2009
Stop Wage Garnishment
The best way to avoid having your wages garnished is to avoid being sued in the first place. So many consumers go into denial mode when they can't pay their debt and try to hide from and avoid their creditors by ignoring correspondence and phone calls. This is absolutely the worst thing you can do. Just contacting your creditors, telling them why you can't repay your debt, offering a reduced monthly payment and keeping them informed of your financial progress, is a much more effective way to handle debt problems and avoid writs of garnishment and -- if you deal openly and honestly with your creditors you won't jump every time the phone rings or lay awake at night worrying.
Work out some sort of agreement very quickly with the other party. If you can't do that then perhaps your only option is to file bankruptcy very quickly. Filing bankruptcy legally puts a stop to wage garnishments.
Filing bankruptcy stops all of your creditors' collection activities which is why it is often used as a weapon to avoid judgments.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Work out some sort of agreement very quickly with the other party. If you can't do that then perhaps your only option is to file bankruptcy very quickly. Filing bankruptcy legally puts a stop to wage garnishments.
Filing bankruptcy stops all of your creditors' collection activities which is why it is often used as a weapon to avoid judgments.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Stop Repossession
Personal bankruptcy can provide immediate debt relief through two main forms:
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
Serving the greater Detroit area, the Warren, MI law firm of BartNow can help you get immediate debt relief while protecting your important assets- such as your car and home- through Chapter 13 consumer bankruptcy. Also called a Wage Earner's Plan or Debt Consolidation Bankruptcy, Chapter 13 personal bankruptcy allows you to keep your home and car while paying off your debts over time from your own earned income.
Advantage of Keeping Your Home and Car
The principal advantage of Chapter 13 bankruptcy over Chapter 7 is that a homeowner in arrears on home mortgage payments will be able to save their home from foreclosure. Many people file Chapter 13 bankruptcy to protect assets in which they have significant equity that otherwise may be lost in Chapter 7 liquidation bankruptcy, including their home, business and car. Chapter 13 provides a way for people to immediately prevent foreclosures and repossessions, while catching up on debts.
Manageable Monthly Payments
Under Chapter 13, the bankruptcy court will approve a repayment plan that provides for the complete satisfaction of most unsecured and secured debts from future income rather than from the current sale of your important assets. The payments you make are structured so that you can meet all your living expenses first and then pay surplus income to creditors. A typical repayment plan lasts three to five years, during which you will make regular payments to a court-appointed trustee who then distributes your money to creditors according to the terms of your plan. Once you have completed this repayment plan, most of your remaining debts are discharged. In a Chapter 7 bankruptcy, some debts are not usually dischargeable, such as alimony, student loans, child support obligations, and certain taxes. A Chapter 13 Bankruptcy can be used to protect you from these creditors while forcing them to accept a repayment plan you can afford.
Prevent Home Foreclosure
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.
Don't put it off, be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:
Time to make up your payments. Lenders might agree to wait before taking legal action against you and let you work out a repayment plan that is affordable for you. This is called forbearance.
Forgiving a payment. If you can agree on a way that you will be current after missing a payment or two (without the means to pay it back), the lender might give you a break and waive your obligation. This is called debt forgiveness and rarely happens.
Spread out the missed payments over a longer term. For example, if your payment is, say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan.
Changing the terms of your loan. If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period. This is called a note modification.
Add the back payments to your loan balance. If you have sufficient equity and meet the lender's lending guidelines, the lender might increase your loan balance to include the back payments and re-amortize the loan. This is called a refinance.
Make a separate loan to you. Certain government loans contain provisions that let borrowers who meet specific criteria apply for another loan, which will pay back the missed payments. This is called a partial claim.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
Serving the greater Detroit area, the Warren, MI law firm of BartNow can help you get immediate debt relief while protecting your important assets- such as your car and home- through Chapter 13 consumer bankruptcy. Also called a Wage Earner's Plan or Debt Consolidation Bankruptcy, Chapter 13 personal bankruptcy allows you to keep your home and car while paying off your debts over time from your own earned income.
Advantage of Keeping Your Home and Car
The principal advantage of Chapter 13 bankruptcy over Chapter 7 is that a homeowner in arrears on home mortgage payments will be able to save their home from foreclosure. Many people file Chapter 13 bankruptcy to protect assets in which they have significant equity that otherwise may be lost in Chapter 7 liquidation bankruptcy, including their home, business and car. Chapter 13 provides a way for people to immediately prevent foreclosures and repossessions, while catching up on debts.
Manageable Monthly Payments
Under Chapter 13, the bankruptcy court will approve a repayment plan that provides for the complete satisfaction of most unsecured and secured debts from future income rather than from the current sale of your important assets. The payments you make are structured so that you can meet all your living expenses first and then pay surplus income to creditors. A typical repayment plan lasts three to five years, during which you will make regular payments to a court-appointed trustee who then distributes your money to creditors according to the terms of your plan. Once you have completed this repayment plan, most of your remaining debts are discharged. In a Chapter 7 bankruptcy, some debts are not usually dischargeable, such as alimony, student loans, child support obligations, and certain taxes. A Chapter 13 Bankruptcy can be used to protect you from these creditors while forcing them to accept a repayment plan you can afford.
Prevent Home Foreclosure
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.
Don't put it off, be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:
Time to make up your payments. Lenders might agree to wait before taking legal action against you and let you work out a repayment plan that is affordable for you. This is called forbearance.
Forgiving a payment. If you can agree on a way that you will be current after missing a payment or two (without the means to pay it back), the lender might give you a break and waive your obligation. This is called debt forgiveness and rarely happens.
Spread out the missed payments over a longer term. For example, if your payment is, say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan.
Changing the terms of your loan. If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period. This is called a note modification.
Add the back payments to your loan balance. If you have sufficient equity and meet the lender's lending guidelines, the lender might increase your loan balance to include the back payments and re-amortize the loan. This is called a refinance.
Make a separate loan to you. Certain government loans contain provisions that let borrowers who meet specific criteria apply for another loan, which will pay back the missed payments. This is called a partial claim.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Who Files For Bankruptcy?
No one should be scared to file for bankruptcy. Debt relief through bankruptcy is critical in many situations in order to regain control of finances and begin anew. At the office of BartNow, we can help you understand the bankruptcy process and how it could possibly save your situation.
Thousands of well-known individuals and companies have filed bankruptcy. Several have gone on to be financially successful after taking control of their finances by filing for bankruptcy. You may recognize the names listed below.
90-95% of individuals who file for bankruptcy do so because they have found themselves in a situation that they did not forsee or create. A layoff, divorce, retirement, child support obligations, medical expenses, or even a co-signer defaulting on a loan can place you in a precarious financial situation. Bankruptcy can help relieve the financial strain.
Contact BartNow today to schedule a meeting with a Michigan bankruptcy attorney and learn how we can help you through the process of filing bankruptcy. A free consultation is available in our office so you can discuss your situation with a member of our experienced bankruptcy team. We have handled tens of thousands of bankruptcy filings. Let us help you regain your dignity throughout this process.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Thousands of well-known individuals and companies have filed bankruptcy. Several have gone on to be financially successful after taking control of their finances by filing for bankruptcy. You may recognize the names listed below.
90-95% of individuals who file for bankruptcy do so because they have found themselves in a situation that they did not forsee or create. A layoff, divorce, retirement, child support obligations, medical expenses, or even a co-signer defaulting on a loan can place you in a precarious financial situation. Bankruptcy can help relieve the financial strain.
Contact BartNow today to schedule a meeting with a Michigan bankruptcy attorney and learn how we can help you through the process of filing bankruptcy. A free consultation is available in our office so you can discuss your situation with a member of our experienced bankruptcy team. We have handled tens of thousands of bankruptcy filings. Let us help you regain your dignity throughout this process.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Credit Issues
Partial Payment Plan: A Bankruptcy Alternative- If your total debt is not a very large amount (say, just a few thousand dollars) and you have regular income, bankruptcy is probably not for you. However, you can go to court and ask for a "partial payment plan" to pay off your creditors over time, in installments. If the court orders such a plan, it will stop your creditors from harassing you, and other unpleasant activities such as repossessions and foreclosures. Come in for your free office consultation, and see if this alternative might be just what you need. Call our lawyers at (586)303-2211 today.
Wage Garnishments- If you are currently experiencing a garnishment, you will be able to stop the garnishment by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits creditors from garnishing or levying any of your assets including wages and income tax refunds. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to garnishing creditors by faxing notice as soon as a case is filed. The creditor must then file a release of the garnishment with the court where it was filed and notify the employer. The employer must recognize the release of garnishment and cease the withholding of wages. The process of physically stopping the garnishment may take as long as two weeks or more, but if any money is garnished from wages earned after the filing of a bankruptcy case, the money must be returned to you. Our persistence and promptness in pursuing garnishing creditors sets us apart from other attorneys.
Repossessions- If you have recently experienced the repossession of a vehicle that you are purchasing, you may be able to get the vehicle back from the auto loan lender by filing a Chapter 13 bankruptcy case. Only Chapter 13 bankruptcy provides you with the opportunity to compel the lender to accept a repayment plan. The auto loan lender does not have to accept a repayment plan in a Chapter 7 bankruptcy.
You must have full coverage collateral protection insurance to obtain possession of the repossessed vehicle. A bankruptcy judge will not otherwise order the return of the vehicle. If you file a Chapter 13 bankruptcy case, we cannot begin to obtain possession of the vehicle without full coverage collateral protection insurance. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order that stays or prohibits the lender from selling the vehicle at an auction. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Usually once a vehicle has been repossessed, the auto loan lender will apply to the Secretary of State and obtain a transfer of title in order to sell the vehicle at an auction. The auto loan lender will give you a 10-day notice prior to the auction during which time you may, without filing bankruptcy, regain possession of the vehicle by paying the entire remaining balance of the auto loan. However, if you file a Chapter 13 bankruptcy case you do not have to pay the entire remaining balance to gain possession. It is possible to gain possession and lower the car payment! In a Chapter 13 bankruptcy you do not have to pay back the entire loan to own the car; you are only required to pay its used value. The loan can also be rewritten to be paid back over a longer period of time, i.e., from three to five years. It is important that you act immediately to prevent the sale from occurring. If the vehicle is sold at an auction, it can no longer be returned.
Foreclosures- If you are facing a foreclosure or a sheriff's sale of your mortgage, you will be able to stop the foreclosure sale by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the mortgage company from following through with its foreclosure sale. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Only Chapter 13 bankruptcy provides you with an opportunity to compel your mortgage company to accept a repayment plan. The repayment plan includes making the current monthly mortgage payment and providing for a cure of the mortgage arrears over a reasonable period of time. It is locally accepted practice that a 36-month cure of a mortgage arrearage is a reasonable period of time. For example, if you have a $400 current monthly mortgage payment and you are $3600 behind in mortgage payments, your plan would have to provide $400 per month plus $100 per month for total payment of $500 per month to maintain your current monthly mortgage payment and to cure your mortgage arrearage over a 36-month period of time. The payment would be made to the Chapter 13 trustee and he or she would make your mortgage payments.
The Chapter 13 bankruptcy case must be filed before the foreclosure sale occurs. A repayment plan cannot be composed in a Chapter 13 bankruptcy case where the mortgage foreclosure sale has already occurred.
Forfeitures- If you are facing a land contract forfeiture, you will be able to stop the forfeiture by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the land contract vendor from following through on its forfeiture judgment. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. Unlike a mortgage arrearage, a land contract arrearage must be cured promptly.
Seizures- If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the judgment creditor from following through on its seizure. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the creditor to accept a repayment of the judicial lien imposed upon the property.
Levies- If you are facing a levy from the Internal Revenue Service or the State of Michigan Department of Treasury, you will be able to stop the levy from continuing by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the government from continuing its levy. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. At BartNow, we will hasten the notification process to the taxing authorities by faxing notice as soon as a case is filed and obtaining the earliest possible release of the levy.
Again, under most circumstances it is recommended that you file a Chapter 13 bankruptcy case. The debt may not be discharged (forgiven) by the filing of a Chapter 7 bankruptcy and therefore must be paid in full. The repayment of the tax debt in a Chapter 13 plan can usually occur over a three to five year period of time without further interest or penalties.
Utility Shutoffs/Collection Harassment- If you are receiving embarrassing telephone calls from creditors to your home, your neighbors or on the job demanding payment of past due bills or constant notices demanding payment of past due bills, you will be able to stop these calls and notices by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order which stays or prohibits the creditors from continuing to demand payment. The failure of a creditor to obey the order may result in sanctions against the creditor and/or its collection agent.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Wage Garnishments- If you are currently experiencing a garnishment, you will be able to stop the garnishment by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits creditors from garnishing or levying any of your assets including wages and income tax refunds. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to garnishing creditors by faxing notice as soon as a case is filed. The creditor must then file a release of the garnishment with the court where it was filed and notify the employer. The employer must recognize the release of garnishment and cease the withholding of wages. The process of physically stopping the garnishment may take as long as two weeks or more, but if any money is garnished from wages earned after the filing of a bankruptcy case, the money must be returned to you. Our persistence and promptness in pursuing garnishing creditors sets us apart from other attorneys.
Repossessions- If you have recently experienced the repossession of a vehicle that you are purchasing, you may be able to get the vehicle back from the auto loan lender by filing a Chapter 13 bankruptcy case. Only Chapter 13 bankruptcy provides you with the opportunity to compel the lender to accept a repayment plan. The auto loan lender does not have to accept a repayment plan in a Chapter 7 bankruptcy.
You must have full coverage collateral protection insurance to obtain possession of the repossessed vehicle. A bankruptcy judge will not otherwise order the return of the vehicle. If you file a Chapter 13 bankruptcy case, we cannot begin to obtain possession of the vehicle without full coverage collateral protection insurance. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order that stays or prohibits the lender from selling the vehicle at an auction. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Usually once a vehicle has been repossessed, the auto loan lender will apply to the Secretary of State and obtain a transfer of title in order to sell the vehicle at an auction. The auto loan lender will give you a 10-day notice prior to the auction during which time you may, without filing bankruptcy, regain possession of the vehicle by paying the entire remaining balance of the auto loan. However, if you file a Chapter 13 bankruptcy case you do not have to pay the entire remaining balance to gain possession. It is possible to gain possession and lower the car payment! In a Chapter 13 bankruptcy you do not have to pay back the entire loan to own the car; you are only required to pay its used value. The loan can also be rewritten to be paid back over a longer period of time, i.e., from three to five years. It is important that you act immediately to prevent the sale from occurring. If the vehicle is sold at an auction, it can no longer be returned.
Foreclosures- If you are facing a foreclosure or a sheriff's sale of your mortgage, you will be able to stop the foreclosure sale by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the mortgage company from following through with its foreclosure sale. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not.
Only Chapter 13 bankruptcy provides you with an opportunity to compel your mortgage company to accept a repayment plan. The repayment plan includes making the current monthly mortgage payment and providing for a cure of the mortgage arrears over a reasonable period of time. It is locally accepted practice that a 36-month cure of a mortgage arrearage is a reasonable period of time. For example, if you have a $400 current monthly mortgage payment and you are $3600 behind in mortgage payments, your plan would have to provide $400 per month plus $100 per month for total payment of $500 per month to maintain your current monthly mortgage payment and to cure your mortgage arrearage over a 36-month period of time. The payment would be made to the Chapter 13 trustee and he or she would make your mortgage payments.
The Chapter 13 bankruptcy case must be filed before the foreclosure sale occurs. A repayment plan cannot be composed in a Chapter 13 bankruptcy case where the mortgage foreclosure sale has already occurred.
Forfeitures- If you are facing a land contract forfeiture, you will be able to stop the forfeiture by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the land contract vendor from following through on its forfeiture judgment. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. Unlike a mortgage arrearage, a land contract arrearage must be cured promptly.
Seizures- If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the judgment creditor from following through on its seizure. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the creditor to accept a repayment of the judicial lien imposed upon the property.
Levies- If you are facing a levy from the Internal Revenue Service or the State of Michigan Department of Treasury, you will be able to stop the levy from continuing by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the government from continuing its levy. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. At BartNow, we will hasten the notification process to the taxing authorities by faxing notice as soon as a case is filed and obtaining the earliest possible release of the levy.
Again, under most circumstances it is recommended that you file a Chapter 13 bankruptcy case. The debt may not be discharged (forgiven) by the filing of a Chapter 7 bankruptcy and therefore must be paid in full. The repayment of the tax debt in a Chapter 13 plan can usually occur over a three to five year period of time without further interest or penalties.
Utility Shutoffs/Collection Harassment- If you are receiving embarrassing telephone calls from creditors to your home, your neighbors or on the job demanding payment of past due bills or constant notices demanding payment of past due bills, you will be able to stop these calls and notices by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order which stays or prohibits the creditors from continuing to demand payment. The failure of a creditor to obey the order may result in sanctions against the creditor and/or its collection agent.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Different Types of Bankruptcy
There are four types of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Chapter 7 is also known as "personal bankruptcy" and is the most common type. Businesses can file under Chapter 7 as well. It results in the total elimination of most of a person's unsecured debts and the prevention of further collection efforts by debtors. Chapter 7 involves liquidation of all assets that are not exempt in your state. Property that is not exempt must be turned over to the bankruptcy trustee for liquidation. Straight bankruptcy takes about four months to complete and a person may only file Chapter 7 bankruptcy once every six years.
Chapter 11 is for businesses that wish to reorganize but it is also available to individuals. It is a complex type of bankruptcy that requires the assistance of an attorney.
Chapter 12 bankruptcy is for family farmers only. It permits a farmer to repay his debts over time (much like a Chapter 13).
Chapter 13 or "reorganization" bankruptcy allows debtors to keep property which they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or incur a default over a period of three to five years, rather than surrender property. To file Chapter 13, your total debt must not exceed certain limitations. You must submit a repayment plan to the court for approval. Your repayments are supervised by a trustee appointed by the bankruptcy court. If you cannot keep up with your payment plan, your bankruptcy can be converted to a Chapter 7.
Which type should you choose? Well, assuming you aren't a farmer or business who wants to reorganize, you have either Chapter 7 or Chapter 13 to choose from. Chapter 7 is almost always the preferred method, but it isn't available or recommended for everyone. You can do-it-yourself with the help of a bankruptcy kit or book on the subject or you can hire an attorney if you think you need some help.
Chapter 13 always requires the assistance of an attorney and is more expensive. You should really file Chapter 13 only if there is some reason that bars you from filing Chapter 7.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
Chapter 7 is also known as "personal bankruptcy" and is the most common type. Businesses can file under Chapter 7 as well. It results in the total elimination of most of a person's unsecured debts and the prevention of further collection efforts by debtors. Chapter 7 involves liquidation of all assets that are not exempt in your state. Property that is not exempt must be turned over to the bankruptcy trustee for liquidation. Straight bankruptcy takes about four months to complete and a person may only file Chapter 7 bankruptcy once every six years.
Chapter 11 is for businesses that wish to reorganize but it is also available to individuals. It is a complex type of bankruptcy that requires the assistance of an attorney.
Chapter 12 bankruptcy is for family farmers only. It permits a farmer to repay his debts over time (much like a Chapter 13).
Chapter 13 or "reorganization" bankruptcy allows debtors to keep property which they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or incur a default over a period of three to five years, rather than surrender property. To file Chapter 13, your total debt must not exceed certain limitations. You must submit a repayment plan to the court for approval. Your repayments are supervised by a trustee appointed by the bankruptcy court. If you cannot keep up with your payment plan, your bankruptcy can be converted to a Chapter 7.
Which type should you choose? Well, assuming you aren't a farmer or business who wants to reorganize, you have either Chapter 7 or Chapter 13 to choose from. Chapter 7 is almost always the preferred method, but it isn't available or recommended for everyone. You can do-it-yourself with the help of a bankruptcy kit or book on the subject or you can hire an attorney if you think you need some help.
Chapter 13 always requires the assistance of an attorney and is more expensive. You should really file Chapter 13 only if there is some reason that bars you from filing Chapter 7.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
New Bankruptcy Laws
In October of 2005, the bankruptcy laws in the United States underwent some changes. These alterations to the existing laws have caused some bankruptcy attorneys to panic and decide that it is virtually impossible for their clients to file for bankruptcy any longer. I say differently. I am bankruptcy attorney Chris Aiello with B.A.R.T legal team and we have been practicing law in the area of bankruptcy for over 22 years. We've helped thousands of individuals file for debt relief in the state of Michigan.
The new bankruptcy laws mainly have an affect on issues concerning increased paperwork and filing requirements for lawyers. Correspondingly, the cost of filing for bankruptcy increased due to the rise in the amount of work each attorney does to file the bankruptcy effectively. We devote the time and attention to each client and case in order to ensure that we file right the first time. Clients still have to go to court once on a Chapter 7 filing and twice on a Chapter 13.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
The new bankruptcy laws mainly have an affect on issues concerning increased paperwork and filing requirements for lawyers. Correspondingly, the cost of filing for bankruptcy increased due to the rise in the amount of work each attorney does to file the bankruptcy effectively. We devote the time and attention to each client and case in order to ensure that we file right the first time. Clients still have to go to court once on a Chapter 7 filing and twice on a Chapter 13.
For more information on Michigan Bankruptcy, please visit: www.BartNow.com
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