Common Questions About Bankruptcy in Detroit
Feel free to call our firm at your earliest convenience. In the meantime,
we might have some of the answers to your bankruptcy questions below:
Do I have to hire an attorney to represent me?
You are legally entitled to represent yourself in
bankruptcy, which is known as a pro se filing, but to achieve the best possible result
it is highly advisable to work with an experienced bankruptcy attorney.
Having legal representation can help you avoid missing filing deadlines
and errors in providing information to the court which could result in
your petition being dismissed. There is also the possibility that you
could end up only partially
discharging your debt.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 is referred to as "straight bankruptcy" or "total liquidation"
and it results in a swift discharge of debts. Before you can file Chapter
7, you will have to pass a
means test of your income and monthly expenses.
Chapter 13, also called "a wage earner plan," is a way of restructuring
a full or partial repayment of your debts according to your ability to
Does bankruptcy remove all of my debt?
While bankruptcy may release you from non-secured debts, it does not include
things such as student loans, car loans and mortgages. It is because these
other types of loans are secured by collateral that bankruptcy does not
cover them. It also depends on which form of bankruptcy you qualify for.
Chapter 7 allows for a large amount if not all of your consumer debts
to be relinquished, however, Chapter 13 debts must still be paid back
but in different installments.
How long does it take?
The Chapter 7 process will typically take about six months with one mandatory
court appearance. The Chapter 13 process will take longer, between three
and five years depending on your particular circumstances, with two mandatory
court appearances. In either case, you will receive immediate protection
against creditor actions such as
wage garnishment and
repossessions through an automatic stay as soon as we file your petition.
Will bankruptcy destroy my credit?
Declaring bankruptcy will have a negative impact on your credit, but if
you are struggling with debt it is likely that your credit score is already
suffering. When you complete the process, you will no longer have such
a high debt to income ratio, and you will be able to begin saving money
for the future. By carefully managing your finances and using strategies for
credit restoration, you may soon have a better credit score than you do now, and within 10
years the bankruptcy will disappear from your credit report.
Will I lose all of my possessions?
This is a common myth that keeps a lot of people from considering bankruptcy.
While filing for Chapter 7 bankruptcy does allow for liquidation of your
personal assets, there are many exemptions that you can file for. It is
not a common for an individual to lose everything they own or lose their
home. There are often options including
short sales and
foreclosure defense that may enable you to keep your house. Working with an experienced and
knowledgeable attorney can help you understand what path to take. They
are skilled at finding necessary exemptions that allow people to keep
Do you have any further questions about bankruptcy in Detroit?
We also have a
handy guide to some common bankruptcy terms. If you want answers specific to your personal circumstances, please do
not hesitate to contact the Law Offices of Marshall D. Schultz today!
You can request a free case consultation, and we can start discussing
your legal rights, as well as your personalized options for debt relief
and credit restoration.
Get Answers to Your Questions - Call (888) 822-6730!
When you have questions about getting out of debt, contact the Law Offices
of Marshall D. Schultz. We have filed
more than 10,000 consumer bankruptcy cases and with
over 33 years of combined experience, we can help you find a solution to your problems. Having achieved a positive
rating on the premier legal ranking site, Avvo®, we are prepared to
give you the personal attention that you deserve. Do not wait any longer
to feel relief from your debt and move forward with your life.
Contact the Law Offices of Marshall D. Schultz in Detroit today for a