In Chapter 7 bankruptcy, you are asking the bankruptcy court in Detroit to discharge most or all of your debts such as credit card bills, medical bills, a car or personal loan or civil lawsuit judgments in exchange you are agreeing to allow a bankruptcy trustee to take any property you own that is not exempt / protected from collection, sell it, and distribute the proceeds to your creditors.
You must qualify for Chapter 7 bankruptcy through a Means Test. The test will determine if your income is low enough and you have little or no disposable funds. If you make too much money, you may not qualify for Chapter 7. Our chapter 7 bankruptcy lawyer in Detroit offers free information on how to file for bankruptcy and to get a fresh start.
Advantages to a Michigan Chapter 7 filing:
You receive a complete fresh start. After the bankruptcy is discharged, the only debts you owe will be for secured assets on which you make the choice whether to sign or not to sign a “Reaffirmation Agreement.”
You have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing. When you file for bankruptcy in Detroit, the bankruptcy judge will implement an automatic stay on creditors, which forces them to stop contacting you or repossessing your property. If the creditors are calling you day and night, Chapter 7 bankruptcy can put an immediate end to their harassment. All collection will stop and stop for good once the bankruptcy approved your discharge.
Filing for Chapter 7 bankruptcy doesn’t mean selling all of your possessions. There are exemptions in the bankruptcy law that allow you to keep the things that matter to you the most. You may be able to keep your home, vehicle, household goods, and items that you need for personal care because of a disability.
Options for your car loan or car lease – Chapter 7 bankruptcy can be an effective way to address a car loan. You may surrender your car, affirm the debt, or redeem the vehicle. If the car is worth less than you owe, you may be able to pay the cash value of the vehicle. When you’re behind in your car payments, you can address your car loan as part of the Chapter 7 proceeding.
You do not have to make payments to a bankruptcy trustee each month for three to five years as you do in a Chapter 13 case.
There is no minimum amount of debt required.
Your case is often over and completely discharged in about 3-6 months.
Hiring the right bankruptcy lawyer can make a big difference in the outcome of your case. An attorney who is unfamiliar with bankruptcy laws may not only make the process more difficult, but the attorney also can make many mistakes that could risk you not receiving a discharge.
What Debt Cannot Be Discharged When Filing for Bankruptcy?
Bankruptcy offers overwhelmed debtors an opportunity for a fresh start through either the liquidation (Chapter 7) or reorganization (Chapter 13) of debt. It is highly possible that a chapter 7 bankruptcy fails to provide relief from a variety of non-dischargeable debt. Not all debts can be discharged, however, and several are very difficult to discharge. A non-dischargeable debt may includes the following:
Child support and spousal maintenance payments
Repayment of student loan, unless necessary
Repayment of past three-year income taxes
Payment of bad check or fraudulent payments
Debts due to divorce settlements
Debts incurred due to fraud, larceny, embezzlement, or “willful and reckless acts”
If you choose to file for Chapter 7 bankruptcy in Detroit , it is strongly recommended that you retain the services of an experienced bankruptcy lawyer in Detroit, MI. The right Michigan bankruptcy lawyer can have a significant impact on the outcome of your case. To find out more information, call our firm today at 248-281-6299 . Don’t wait to schedule a consultation with a bankruptcy lawyer whom you cannot trust when you need a fresh start.
If you’re struggling with out-of-control debt, you owe it to yourself to consider your options. There’s no substitute for meeting with an experienced bankruptcy lawyer. At Detroit Bankruptcy Law Firm you can find out whether bankruptcy is right for you by sitting down with one of our attorneys during a free consultation. Call 248-281-6299.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.