What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is designed for people who over time, have enough income to pay off their debts. It's also a good choice in situations when the person has assets that they would lose in a Chapter 7 proceeding Also, people who choose Chapter 13 generally don't meet the Means-Test, having household income that exceeds the threshold, but are still buried by debt.
Chapter 13 allows them to make court-supervised monthly payments over a period of three to five years. These payments are reviewed and approved by the court and are tied to your ability to pay. After you have made them, no matter how much of your debts you've actually paid, your debts are wiped clean.
After your case is filed, a bankruptcy hearing will be scheduled, so that our payment plan can be discussed. Sometime later, another hearing will take place as well, confirming the proposed plan. You will also be required to participate in a credit counseling and financial management program as in Chapter 7 cases. These are generally a couple of hours long and can be done at home, on the Internet or by phone.
Chapter 13 Bankruptcy is an alternative to Liquidation (Chapter 7)
Chapter 13 isn't what most people think of when they think of bankruptcy, but it can still be an effective debt-relief solution. At the law offices Mid Michigan Bankruptcy Center, we will help you discover whether it is right for you. Serving Central Michigan counties, we'll schedule a free and confidential consultation, so that you can talk with an experienced attorney who will answer all your questions.
To be candid, Chapter 13 relief isn't for everyone, and when possible, it is generally recommended to use a Chapter 7 proceeding. A Chapter 13 bankruptcy may be appropriate if you are a homeowner facing foreclosure, if you owe too much on certain secured debts, if your house is underwater and you have more than one mortgage. If you are able to file under Chapter 7, that is often the better choice.
According to the U.S. Bankruptcy Court for the Eastern District of Michigan, over 250,000 people in the Eastern District filed for bankruptcy in the past 5 years. If you're considering filing, you're not alone. Thousands of other people have been through it before and are living debt free.
To get started, schedule a free and confidential consultation at no obligation. Call us toll free at 1-800-EZ-MI-BANK(ruptcy) or 1-989-539-2105 You may also complete our online contact form. Our main law office is located in Harrison, Michigan, but we will meet with you in your area at one of our local offices for no charge. Call Today. We try and answer your inquiries within an hour.
