Wage and bank garnishments, credit cards, medical bills, and falling behind in vehicle and mortgage payments happen to good people who find themselves in bad circumstances. If you are considering bankruptcy, we can help. At Bieber & Czechowski, our firm will provide you with one-on-one assistance through every step of the process. Unlike other firms where you may never speak to or see the same attorney twice, we take pride in our excellent client service.
Chapter 7 Or Chapter 13 — Which Is Right For You?
You may know there are different types of bankruptcy, but how do you choose the type of bankruptcy for your situation? Our thoughtful, personalized legal guidance will help you make that decision, but first you must understand your debt relief options. Most individuals either file for Chapter 7 or Chapter 13 bankruptcy.
Some refer to Chapter 7 bankruptcy as a “fresh start.” All of your debt is wiped out, although some of your assets may be sold to pay part of that debt. Chapter 7 is a liquidation of your assets and debts. There are certain debts you cannot discharge in bankruptcy, however, so you should speak with a lawyer about your options. The court may allow you to keep certain assets such as a house or car.
Chapter 13 bankruptcy, on the other hand, does not liquidate your assets. It reorganizes your debt into a payment plan of three to five years, typically. This can be helpful if you are behind on your mortgage or car loan or if you have valuable property you do not want to lose in the bankruptcy.
To file either a Chapter 7 or a Chapter 13 bankruptcy in Michigan, you must pass a means test, which reviews your income and ability to pay your debt.
Speak With An Attorney Before You Take Your Next Step
Just the thought of filing bankruptcy can be overwhelming. Many people ask if they should continue to pay on credit cards. Mortgage payments? Car payments? Should I pay off that loan to a family member now? What if I transfer a car out of my name? Would it be wise to take a 401(k) loan instead of filing bankruptcy?
These questions require thoughtful answers, as your actions before you file your case can and do have consequences afterward. Contact us immediately for a free consultation. We can discuss the best strategies to protect your assets. Learn more by visiting our bankruptcy FAQ page.
Contact An Experienced Bankruptcy Attorney
Our main office is in Center Line, in the heart of Warren, Michigan. To speak with an experienced bankruptcy attorney at our firm, call 586-754-1450, or contact us by email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.