Okemos Bankruptcy Attorneys
Our Bankruptcy Lawyers in Michigan Can Help You Seek Debt Relief.
23,606 Michigan citizens filed for Chapter 7 and Chapter 13 bankruptcy in 2019. If you are struggling to pay off your debts, it may seem impossible to see a light at the end of the tunnel. But you’re not alone. Thousands file for bankruptcy each year to gain a fresh start, and there is no shame in doing the same.
When you turn to our experienced Okemos bankruptcy attorneys to help overcome your financial burdens, you can regain confidence in your situation. We understand how overwhelmed you may feel dealing with creditors, financial institutions and lawsuits; therefore it’s best to retain our tough Okemos bankruptcy lawyers to help resolve your debt troubles. There is hope, and we’re here to help you see it.
The best decision you can make for your future is to reach out to our bankruptcy lawyers in Michigan to learn about your bankruptcy options. We offer a FREE case review!
What Is Bankruptcy in Michigan?
Bankruptcy in Michigan is a legal process used to examine the financial scope of individuals and businesses who can’t pay their bills and decide whether to discharge those debts so they are no longer required to pay them. Bankruptcy laws were written to give people a chance to start over.
We Can Guide You Through Chapter 7 & Chapter 13 Bankruptcy
There are two common types of bankruptcy in Michigan that aim to help you recover from your financial hardships: Chapter 7 and Chapter 13. We have successful track record of helping clients with both, depending on what their financial circumstances warrant.
Chapter 7 Bankruptcy Facts
- Chapter 7 bankruptcy is the most inclusive debt forgiveness option, meaning most, if not all, of your debt can be discharged if you file successfully. Individuals, partnerships, and corporations or business entities can all seek relief from unsecured debts such as credit card balances, auto loans, mortgage payments, etc. through Chapter 7 bankruptcy.
Chapter 7 bankruptcy eligibility depends on whether you:
- Have the means to pay back your debts
- Filed for bankruptcy within the past eight years
- Lied to creditors about your debts
- Have disposable income
- Make more money than Michigan's median income
Please refer to our Chapter 7 bankruptcy page for more information.
Chapter 13 Bankruptcy Facts
Chapter 13 bankruptcy enables individuals to develop a schedule to repay all or part of their debts. Unlike Chapter 7 bankruptcy, your debt will not be dismissed. Rather, in Chapter 13 bankruptcy, debtors propose a repayment plan to make installments to creditors over 3 to 5 years. Under this chapter, creditors will stop trying to collect money from the debtor.
To qualify for Chapter 13 bankruptcy, you must:
- Have a limited amount of debt: As of 2019, your debt cannot exceed $1.25 million, and unsecured debt cannot exceed $419,000.
- Maintain a steady income: Creditors must feel confident that you can repay your debts, therefore you must prove that your income is adequate.
- Be liable for the debts in question: This simply means you cannot use personal bankruptcy plans to cover business debts for which you are not liable
Please refer to our Chapter 13 bankruptcy page for more information.
Is Bankruptcy My Only Option?
If you’re struggling under the weight of crippling debt, you may be looking at bankruptcy as though you have nowhere else to turn. It’s easy to see why bankruptcy is so frightening to so many people—the impact it can have on your credit for many years to come can be significant and for that reason many people don’t even want to consider it as a viable option. However, there’s some good news: if you really feel as though bankruptcy isn’t the right choice for you or you don’t qualify, there are viable alternatives to bankruptcy that can help you get back to financial independence without resorting to the Michigan bankruptcy process. On this blog, we’ll explore a few of them.
Believe it or not, you may not have to pay back everything you owe. In fact, the vast majority of the time your creditors would rather accept less than what you owe in exchange for not having to pursue lawsuits and legal actions against you. If you incurred the debt against you in good faith, and have simply fallen behind due to circumstances beyond your control, try talking with your creditors to let them know your situation. In some cases creditors are willing to give you a reprieve to allow you time to get back on your feet before demanding payment again. Other times they’ll agree to accept less than what you owe so long as you commit to paying what you can. This isn’t always successful, but you may be surprised just how often it can work out in your favor.
Debt consolidation is the practice of taking all your outstanding debts, combining them together, and then slowly paying them off over time using one monthly payment. In some cases, creditor negotiation can help this even further by reducing the amount you owe each creditor. Once you have completed your repayment plan and your creditors have received what you owe them, they’ll discharge your debt and you can get back on your feet again!
Debt consolidation’s big benefit is that it allows you to have more predictable and controllable monthly expenses, knowing exactly how much you’re going to owe each month so you can budget appropriately. This stability and freedom from debt collection practices can be a huge relief for many debtors. However, beware companies that say they can help you with debt consolidation and promise highly-unrealistic results; often times they simply combine your debts together with little relief to your actual burden, stretch the loan over time, and then charge you a fee on top of the interest you’re paying. In the long run, you’re actually paying quite a bit more than you would otherwise.
Liquidate Your Assets
Do you have a car you can sell to make some quick cash? What about a closet full of clothing you rarely wear that you could list online and make money off of? These are both quick and simple ways to raise a little bit of extra cash that you could put towards paying off outstanding debts. Catching up on some of your bills and paying off outstanding debts can help reduce your overall monthly payments and help you start to improve your credit score once again, and you’ll do so even faster because you won’t have any bankruptcy marks on your financial history.
Before you start ignoring your financial obligations, hear us out—do not ignore the bills that come in the mail; this will only lead to more trouble. You should always do everything you can to pay off your bills. However, if you have very few assets to your name and little in the way of financial means to pay back your creditors, you’re said to be “judgement-proof” since you can utilize legal exemptions to protect what you do own from creditors. In this situation, there isn’t much that creditors can do to collect what you owe them, so you’re essentially in the clear.
However, before you try to take this tactic, you need to talk to a skilled Okemos bankruptcy lawyer to find out if you can actually put yourself in this category. You may be able to exempt some of your possessions, but not all of them, and you don’t want to make any mistakes that could hamper your ability to eventually get out of debt.
Dealing With Bankruptcy in Michigan? Call Today!
Our team at White Law PLLC has handled countless bankruptcy cases and has the cutting-edge representation you need to help you overcome your financial struggles. There is no better feeling than knowing you can get back on your feet and move forward from your debts, and we are here to help you accomplish that.
You can count on us to examine your financial data to strategize the most effective way to file for Chapter 7 or Chapter 13 bankruptcy. From start to finish, our Okemos bankruptcy attorney will help you understand every detail of your case and how to best move forward.
Regaining your peace of mind starts with a phone call. Contact our bankruptcy attorneys in Michigan at (517) 316-1195to schedule your free consultation!
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