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Chapter 13

Detroit Chapter 13 Attorney

Understanding How Chapter 13 Bankruptcy Works

Bankruptcy is not only for people with little or no income. If your current debt outweighs your ability to pay, you can seek relief through Chapter 13 bankruptcy. This option allows individuals who are not qualified for Chapter 7 an opportunity to get their debts under control. It is not as sweeping as Chapter 7, but it has advantages such as being able to catch up on delinquent mortgage payments over a period of up to 60 months. A Detroit bankruptcy lawyer from our firm can advise you of your options and help you begin work on the petition to file under Chapter 13. The Law Offices of Marshall D. Schultz is dedicated to representing clients who are determined to get out of debt, and with a track record that includes more than 10,000 consumer bankruptcies, we know how to get results.

Chapter 13, which is commonly referred to as "a wage earner plan," is a way of restructuring a full or partial repayment of your debts according to your ability to repay. Your attorney will evaluate your financial needs to find an amount which you can reasonably afford to pay, while still maintaining your rent or mortgage, groceries, utilities, clothing, car payment and maintenance, recreation, insurance, etc. After deducting all of these normal expenses from your overall income, the amount remaining, which is more commonly referred to as the net disposable income, is committed to a monthly payment plan. Whether or not you end up repaying all of your debt, you will be released from further obligation at the end of your payment period.

Is Chapter 13 bankruptcy right for me?

Chapter 13 bankruptcy will require you to make continued payments on your debts, unlike Chapter 7 which leads to a rapid discharge of debts, but it is potentially more effective for the debtor. A Chapter 7 bankruptcy will not affect a mortgage or car loan, but under Chapter 13 the individual is often given the chance to restructure a delinquent car loan and to catch up on mortgage payments that are past due. You may also be able to strip a second mortgage lien from your home if the house is worth less than the first mortgage.

We will teach you what you need to know about Chapter 13, and our Detroit Chapter 13 lawyer will do everything we can to help you take full advantage of your rights so that you can begin life after bankruptcy in a position of financial stability.

Contact the Law Offices of Marshall D. Schultz from our firm so that we can work with you towards a brighter future! We have offices in both Southfield and Detroit.

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