BANKRUPTCY LAWYERS IN SOUTHFIELD, MI
Bankruptcy lawyers in Michigan
When financial stress becomes too much for you to bear, it may be time for drastic measures.
Despite the perception that bankruptcy is for people who can’t manage their finances, the most common reasons people fall behind on debt payments are medical expenses and unemployment. In other words, circumstances beyond your control can lead to a situation where you are unable to pay your bills at your income level.
If you’re tired of struggling to move mountains of debt and want a clean slate, the attorneys at Morgan & Morgan can help. Our team of experienced Michigan bankruptcy attorneys will navigate every step of the process for you, ensuring the best outcome possible.
Chapter 7: Liquidation bankruptcy
Chapter 7 bankruptcy requires you to sell, or liquidate, your nonexempt property to pay your creditors. Nonexempt property includes investments, art and jewelry, collections, precious metals, and new model vehicles. Basically, nonexempt property is non-essential items that are valuable enough to be collateral on secured debt.
If you have no nonexempt property of significant resale value, you can opt to “abandon” it. Meaning, you get to keep your things even if they are technically nonexempt.
Upon filing for Chapter 7 bankruptcy, you discharge your debt within a few months, allowing you to start over with a clean slate. Individuals seeking to file Chapter 7 bankruptcy must pass the Chapter 7 means test, which identifies how much disposable income you have. Moreover, a Chapter 7 remains on your credit report for ten years and does not allow you to make back payments on secured debt.
Chapter 13: Reorganization bankruptcy
Your other option is Chapter 13, or reorganization bankruptcy. Under Chapter 13, you restructure your debt rather than having to sell off your assets to pay your creditors.
The debt is discharged in three to five years via a repayment plan that prioritizes your various obligations and requires you to pay some of them in full. Depending on your financial circumstances, your creditors may write off some of the debt you owe.
Reorganization bankruptcy is available to people with too much disposable income to qualify for Chapter 7. It offers you the ability to make back payments on secured debt, allowing you to avoid foreclosure if you have fallen behind on payments. It takes seven years for this type of bankruptcy to disappear from your credit report.
Morgan & Morgan can help
As a Michigan resident filing for bankruptcy, choosing the right law firm can make all the difference. A good way to know which one to hire is to ask your family and friends. Morgan & Morgan receives thousands of referrals from other lawyers, doctors, and even judges. Our bankruptcy attorneys are passionate about obtaining you and your family a clean slate to start over. We’ll be by your side during the complex process of gathering financial documents and filing paperwork. Discover what we can do for you by filling out a no-cost case evaluation form today.